There is the question of whether not having a duty of care to individual officers is overturned. That register registerserch would be a significant extension of asp liability."Some local authorities welcome the greater constraints that district auditors may now have to operate under. John Sinnott, chief executive of Leicestershire, says: "Anything that makes district auditors think of the consequences of their actions is welcomed. District auditors and register the registerserch Audit asp Commission have become all too ready to criticise and to registerserch lose sight register registerserch of their responsibilities. Perhaps we might also expect auditors to think of how in their duty of care they might asp help local authorities rather than hinder them.". register Customs asp and Excise officials fear register they are to be made asp scapegoats for Whitehall's failings in the forthcoming Scott "arms to Iraq" report registerserch which severely criticises their department.

The strength of the attack in the draft report has shocked and dismayed senior Customs staff, who have seen extracts relating to their role in the affair. The criticisms centre on Customs' handling of the disastrous prosecution of Matrix Churchill executives. The report accuses them of failing to heed warning signals and not thinking through the implications. Without knowing what is being said about other government departments, they believe that they are being asked to shoulder a disproportionate amount of the blame.Customs' pursuit of Matrix Churchill through the courts followed what was widely seen as a Customs' triumph in stopping the export of pipes destined for an Iraqi supergun. Three executives of the machine-tool manufacturer were accused of evading export controls and sending weapon- making equipment to Iraq. The Department of Trade and Industry issues export licences and customs checks and enforces them.However, the case collapsed at the Old Bailey in 1992 after evidence was produced showing the Government was aware all along that the tools were to be used in an arms factory in Iraq.The officials point out that while it is true customs did instigate the Matrix Churchill prosecution, they took legal advice throughout.The criticisms appear in the draft report of the Scott inquiry and could still be changed before its publication in June.

In particular, Customs is accused of failing to take note of the ambiguous remarks made in January 1988 by Alan Clark, then Trade Minister, which could have been seen as giving a "nod and a wink" to Matrix Churchill to trade with Iraq. That interpretation subsequently proved to be crucial to the defence of Paul Henderson, director of Matrix Churchill, but Customs chose to discount it.Even Customs' own barrister submitted advice well before the trial saying the prosecution hinged on what those listening to Mr Clark might reasonably infer from what he had said.Customs also failed to understand properly the DTI's approach to the licensing of Matrix Churchill's tools.As long ago as October 1989, Customs had been circulated with a secret GCHQ report saying that an unidentified British company was supplying machine tools to an Iraqi arms factory. That was further evidence that the Government was aware what was going on. Seven weeks later, a Whitehall committee named the company as Matrix Churchill.