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Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
I am coming to that in due sequence, I hope.
CMAL awarded the contract in its capacity as the procuring authority. It expressed concerns about the absence of a full refund guarantee, and it put in place mitigations with regard to that. There is a question about the timing of that. FMEL did not say anything about being unable to comply with the terms of the tender until after the announcement was made, which is a bit odd. You would have thought that, at the time of responding to the tender document, it would have said, “No, we cannot comply with those bits.”
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
When the yard was nationalised, the assets in it must have been valued. Was their value comparable to the money that came in to produce them?
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
Is that not an area that it is important for us to look at? One of the key things that this committee does is follow the public pound; here, we have a situation in which tens of millions of pounds have been poured into a project with not that much to show, value-wise, at the end of it.
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
Are you considering doing such a review?
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
Did CMAL give a formal document with detailed concerns that got to ministers? I am asking you that question because I am not sure.
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
Yes, but if you look at the annex and the covering document that went to ministers asking for their confirmation, you see that it does not seem to match up in terms of concerns.
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
The email that went to ministers contained those annexes. If I was a minister reading the covering email that asked to give confirmation that I was content, I would look at the clear indication that the terms are
“broadly comparable with the tender specification”
and at the assurance that previous
“financial assurances in previous shipbuilding contracts ... subsequently faced problems”
and so forth, and I would say that a decent job seemed to have been done in mitigating the risk.
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
Convener, do we have time for questions on accountable officers, governance and all those other things?
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
Moving on from that, what actions has the board taken to address the Sturrock report findings and to foster a much more open organisational culture?
Public Audit Committee
Meeting date: 28 April 2022
Colin Beattie
Absolutely—if Boyd wants to come in, he can talk about that.