PwC will lead a review into how the BBC wasted almost �100m on its failed Digital Media Initiative

Review into scrapped BBC Digital Media Initiative

A review has been launched into how the BBC wasted almost £100m attempting to create a digital production system.

City firm PwC has been brought in after the BBC scrapped its Digital Media Initiative (DMI), which was intended to create a production system linked to the corporation's vast broadcasting archive.

It is calculated the DMI has cost £98.4m since it started in 2008 and the review will examine whether the "governance arrangements" for the project were "fit for purpose".

The new director-general Tony Hall scrapped the scheme last month saying it had "wasted a huge amount of licence fee payers' money" and adding that the BBC had to keep similar projects under "much greater control than we did here".

A list of seven questions the review will answer were set out today including: "What governance arrangements were put in place for the oversight of the project? Were they fit for purpose?"

The review will also recommend improvements where "weaknesses and failures are identified" and examine what arrangements were put in place to report to BBC bosses about the project.

The corporation's chief technology officer John Linwood, who earns £280,000 a year, has been suspended on full pay pending the outcome of the BBC's investigation.

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