Interesting article from FE News.com -

Ministers on the Innovation, Universities, Science and Skills Committee investigating the college building crisis last week found that "warning signs were missed and even worse, ignored".
Earlier this year, it emerged that the Learning and Skills Council (LSC) did not have the funds to carry out the college development plans it had feverishly encouraged. Out of the 144 colleges that had together invested millions of pounds in preparing projects for LSC approval, only 13 will get the go-ahead this year.

(read more)

It doesn't exactly fill you full of confidence for governmental quango's when serious issues like this arise. We work with many of the colleges caught up in this debarcle and they have suffered some serious problems financially - not to mention the disruption to staff/students. Hopefully lessons can be learned so this does not happen again.