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The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
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Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
Thank you very much.
I also wanted to ask you about one quite specific area. At our previous evidence session on this report, on 27 January, we took evidence from the Auditor General on the overspend in the Crown Office and Procurator Fiscal Service, which arose as a result of special payments of £40.2 million in connection with the acquisition and administration of Rangers Football Club. We are interested not only in the impact of that overspend on the service itself, but in the decision making around those payments, particularly the role of the Lord Advocate in that respect. At the previous evidence session, we were told that there were two cases still outstanding. The Audit Scotland report tells us that the Scottish Government authorised the overspend. Can you tell us who did so?
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
Just to conclude, I think that you undertook to give us some information in writing about fraud, payment and recovery, decision making relating to the Crown Office and Procurator Fiscal Service overspend and so on. That would be helpful. When we survey the Official Report of the meeting, we might find that there are other areas that we want to follow up with you, too.
Thank you for your time this morning and for your thoughtful contributions. I also thank your team: Lesley Fraser and Alyson Stafford, who joined us online; and Jackie McAllister and Colin Cook, who joined us in the committee room.
With that, I suspend the meeting to allow for a change of witnesses.
10:33 Meeting suspended.10:36 On resuming—
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
Mr Cook, do you want to come in?
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
On 27 January, we took evidence from the Auditor General, who described the deal between the Scottish Government and the GFG Alliance as a “complex transaction”. He said that
“there is an increasing likelihood that the guarantee will be called upon.”—[Official Report, Public Audit Committee, 27 January; c 9.]
Is that a strong position?
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
I will move on in a second, but I underline the fact that it is a quadrupling, within the space of a year, of the assessment of the exposure to risk. If that was my personal financial situation, I would be alarmed at such an increase in my expected or assessed exposure to financial risk. Is the Scottish Government not alarmed by the quadrupling of that exposure?
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
To move things along, I invite Craig Hoy to ask some questions.
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
There has also been considerable public interest in another one of the Government’s financial arrangements—the one with the Gupta Family Group Alliance. The Audit Scotland report focuses on the Lochaber aluminium smelter deal. What is the Scottish Government’s total financial exposure in relation to that deal?
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Canals”
Meeting date: 24 February 2022
Richard Leonard
There are other circumstances in which a valuation might be applied prior to a change of ownership. That has happened in the past. With ScotRail, for example, where the ownership of the franchise is changing, would you expect some kind of fixed asset register to be provided on the transfer date, so that the Scottish Government, in taking on the assets, would know what Abellio was handing over to it?
Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Canals”
Meeting date: 24 February 2022
Richard Leonard
Thank you. We are out of time. I thank the Auditor General for providing us with a useful insight into the report. I thank Joanne Brown, who joined us online, and Graeme Greenhill for their evidence, which has given us a lot of food for thought.
The meeting will now move into private session.
11:20 Meeting continued in public until 11:42.Public Audit Committee
Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”
Meeting date: 24 February 2022
Richard Leonard
Thank you. In Parliament there is a lot of debate around inputs but there is not necessarily sufficient concentration on the outcomes, so that is very helpful.
