Allegations contract for ferries were 'rigged' must be investigated, economy secretary told

The Scottish Conservatives made the demand after The Scotsman revealed the probe was only looking at fraud.

Allegations a key ferries contract was “rigged” must be fully investigated with the full findings and costs presented to parliament, the economy secretary has been told.

Audit Scotland, which examines how public money is spent, also reiterated its expectations “all questions” and allegations would be investigated in full.

The demand comes after The Scotsman revealed the ongoing probe being led by a taxpayer-funded KC and commissioned by Scotland’s ferry procurement body, CMAL, will only look at whether the crime of fraud took place when it awarded the contract for hulls 801 and 802 to Ferguson Marine.

11/04/2023. Port Glasgow. Ferguson Marine shipyard.

The probe was sparked after a BBC documentary alleged procurement rules had been broken by CMAL by giving the Port Glasgow yard preferential treatment, allegations that are not being investigated.

Barry Smith KC, an expert in defending clients against regulatory prosecutions, was hired by CMAL to undertake the report, but the public body has refused to commit to publishing the findings in full and said they would keep the cost secret.

Graham Simpson, the Scottish Conservative transport spokesperson, wrote to the economy secretary, Neil Gray, to demand the probe looked at the central claims of the BBC documentary.

He said: “I am very concerned that the reported terms of the investigation will only lead to one conclusion, i.e. that there was no fraud and that we should all move on.

"Mr Smith should have been asked to investigate the claim made by the BBC that the process was “rigged”. Can you assure me that Barry Smith will be tasked with looking at that claim, rather than something that no one has alleged?

“The public has a right to know what went on, or didn’t go on here. Parliament must also be told what the cost of the investigation is but I imagine that will be a matter that will be raised when we return from recess.”

The outcome of the KC probe is also being monitored by the Auditor General who said he would examine the findings before commencing potential further audit work.

However, an Audit Scotland spokesperson reiterated the expectation that “all questions” about the procurement process should be examined, highlighting the Scottish Government’s commitment to do so.

A spokesperson said: “Scottish Ministers previously committed to ensuring that all questions about the fairness and appropriateness of the tendering process for these vessels are properly and independently investigated.

"We are monitoring progress of the King’s Counsel review, and when its findings are available we will consider whether to conduct further audit work."

CMAL were accused of giving preferential treatment to Ferguson Marine, then owned by pro-independence tycoon Jim McColl, during the tender process, breaching their own procurement rules.

However, since hiring Mr Smith to undertake the probe, the public body has refused to comment on any aspect of the investigation including its cost, scope and publication.

A spokesperson for CMAL said “ We are not at liberty to comment on the KC investigation while it is ongoing.”

The Scottish Government was also contacted for comment.