An independent investigation into allegations Caledonian Maritime Assets Limited (CMAL) may have acted fraudulently or rigged the tendering and awarding process for the construction of the new Arran ferries has found no evidence for this claim.
CMAL, which is legally obligated to investigate allegations of fraud, instructed its solicitors Addleshaw Goddard to appoint a King’s Counsel (KC) to carry out an independent investigation after allegations were made by the BBC as part of the Disclosure Great Ferries Scandal documentary which aired in September 2022.
The documentary investigated the details surrounding the Scottish government’s awarding of the contract for two ferries Hull 801 and 802 – now called MV Glen Sannox and MV Glen Rosa – which are both destined for the main Arran route, to Ferguson Marine in 2015.
Among the allegations was that CMAL went against its own minimum mandatory requirement by approving the tender bid without a builders’ refund guarantee, that Ferguson Marine received a more detailed technical requirement brief than other bidders and that it was able to change the design midway through the tender to closer match the specifications and become more competitive.
It was also alleged CMAL held a confidential meeting with the shipyard, something it did not do with any of the other bidders.
CMAL has now received the report of the investigation by Barry Smith KC and has made it public in the interests of being “open and transparent”.
Kevin Hobbs, chief executive of CMAL, said: “We welcome the findings of Barry Smith KC’s independent investigation, which has established no evidence of fraud in the procurement of vessels 801 and 802.
“We do, however, recognise the report identifies a number of mis-steps over the course of the procurement during 2014 and 2015 and mitigations have been in place for several years to ensure these do not happen again. For example, all parties involved in a CMAL competitive tender are required to sign a confidentiality agreement and all clarification meetings with bidders are now carried out using the same method of communication.
“The KC’s report recognises the CMAL team at the time of this procurement as diligent, dedicated, hardworking individuals – which we stand by entirely. This is also true of current team, which is firmly focussed on the delivery of these vessels, working closely with Fergusons to ensure they enter service as soon as possible.”
Barry Smith KC interviewed 14 people during his investigation and communicated with BBC solicitors. Speaking at the time, the journalist who presented the programme released a statement questioning the remit of the investigation.
It said: “We had hoped to co-operate fully with your inquiry, despite our previously expressed concerns that the terms of reference were not being shared, nor was there a commitment to publish your final report in full.
“We therefore do not see how we can assist further than with what we have already published in our journalism, which we fully stand behind.”
The full report has been published online and can be found at https://www.cmassets.co.uk/cmal-publishes-kings-counsel-report-in-full/
