Public Audit Committee
Accountable Officer Written Authority: Completion of vessel 802
Background
On 16 May 2023, the Committee received notification of a Written Authority in relation to the completion of vessel 802 at Ferguson Marine Port Glasgow (FMPG) from the Director-General Economy, as the Accountable Officer for the Scottish Government's investment in FMPG.
The letter also contained a copy of the Written Authority request to the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, along with the Cabinet Secretary's response which provided the Written Authority.
What is a written authority?
The Scottish Public Finance Manual, issued by Scottish Ministers to provide guidance on the proper handling and reporting of public funds, states that the essence of an Accountable Officer is—
“a personal responsibility for the propriety and regularity of the finances under their stewardship and for the economic, efficient and effective use of all related resources. Accountable Officers are personally answerable to the Parliament for the exercise of their functions”.
Under Section 15(8) of the Public Finance and Accountability (Scotland) Act 2000 (the Act), an Accountable Officer can obtain Written Authority from Scottish Ministers if they consider that an action they are required to take is “inconsistent with the proper performance of the functions” they carry out.
The Accountable Officer is required to provide copies of the request for the Written Authority and the Authority itself to the Auditor General for Scotland and the Clerk to the Public Audit Committee.
Committee Work
On 1 June 2023, the Committee took evidence from the Director-General Economy in relation to the Written Authority that was sought and received as part of its scrutiny of the 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited.
On 22 June 2023, the Committee took oral evidence from the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy on the provision of the Written Authority.
Meetings
22 June 2023
The Committee took evidence from:
Neil Gray, Cabinet Secretary for Wellbeing Economy, Fair Work and Energy: Colin Cook, Director for Economic Development; and Kate Hall, Deputy Director Strategic Industrial Assets, Scottish Government.
Followed by:
Stephen Boyle, the Auditor General for Scotland; and Mark Taylor, Audit Director, Audit Scotland.
Read the agenda and meeting papers, 22 June 2023
Read the Official Report, 22 June 2023
Read the meeting minutes, 22 June 2023
Decision: The Committee agreed to write to the Net Zero, Energy and Transport Committee and the Auditor General for Scotland.
Decision: At its meeting on 7 September 2023, the Committee noted correspondence from the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy dated 30 June 2023 and from the Auditor General for Scotland dated 24 July 2023 in relation to its scrutiny of the Accountable Officer Written Authority: Completion of vessel 802 and agreed to write to the Scottish Government.
Decision: At its meeting on 26 October 2023, in relation to its scrutiny of new vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802, the Committee considered correspondence from the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, dated 29 September 20323 and 4 October 2023 and agreed to write to the Cabinet Secretary. The Committee also considered correspondence from the Minister for Transport and agreed to write to the Minister.
The Committee considered the report titled "Procurement of vessels 801 and 802: Allegations of fraud" prepared by Barry Smith KC and published by Caledonian Maritime Assets (CMAL) and agreed to write to CMAL, the Scottish Government and Transport Scotland.
Related work
The Committee has recently undertaken work in the following related areas:
New Vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802
The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited