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Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
You said that you found some governance arrangements to be a barrier to resolving the dispute. Can you give us a little more information on that?
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
Yes. One of the key points here is that the decision was taken to nationalise the company but full due diligence does not seem to have been carried out, as would normally be the case. Will you comment on the reason for that?
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
My memory is that the accountable officer—I cannot remember his name—said that only partial due diligence could be carried out. I think that it was said that that was partly due to time and the availability of information.
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
Given that the decision was taken without a full understanding of the costs and challenges in the company, and in the light of subsequent issues and given its history, do you still think that it was the right thing to do?
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
Did they do so?
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
There was no real advice given in this particular case as to whether any sort of direction was required. Please correct me if I am wrong but, from what you are saying, it was just a routine process with a sign-off from the minister. Is that correct?
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
Not within your—
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
You received the information on that from several different sources. It must have been pulled together in some place. Is there a document that covers that?
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
Okay.
There were differing views, in the evidence that we heard on 26 May and 30 June, on whether the contract award decision was down to CMAL. Do you consider that CMAL was given a direct instruction to proceed?
Public Audit Committee
Meeting date: 8 September 2022
Colin Beattie
So, as far as you are concerned, there was nothing unusual about the process that was followed. It was high profile, yes, but it was not unusual in how it was handled.