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Highlands and Islands Enterprise (HIE) Contract row chairman quits post

Willie Roe

Willy Roe is chairman of both HIE and consultancy firm Rocket Science

The chairman of Highlands and Islands Enterprise (HIE) has resigned from a consultancy firm at the centre of controversy over contract awards.

William Roe chairs both HIE and Rocket Science UK, which was awarded £150,000 of contracts by the enterprise body.

An internal review into the contracts was ordered by HIE chief executive Sandy Cumming.

It found “no evidence” of wrongdoing, but Mr Roe said he would be stepping down from Rocket Science.

The review carried out by HIE’s head of internal audit found its payments to Rocket Science between 1 September 2004 and 31 March 2009 totalled £149,256 for 21 projects.

However, the consultants subsequently repaid £6,864 after it was discovered that material in one report had been copied without clear attribution from another source.

Willy Roe is a hugely imaginative and inspiring public leader who is devoting his talent to creating a better Scotland
Richard Scothorne
Rocket Science

The report said 12 of the projects, which totalled £117,516 of expenditure, were either awarded after a tender, or had appropriate justification for using Rocket Science recorded at the time of the decision.

It added that a further expenditure of £31,740 had no advance justification recorded, but all of these contracts were for less than £10,000 and were therefore in line with HIE’s policy for awarding negotiated contracts.

The audit found no evidence that any of HIE’s decisions to use Rocket Science had been influenced by Mr Roe’s role in either body.

In a statement released following the report’s publication, Mr Roe said he had decided to leave his post with Rocket Science in order to “completely separate my public service functions from my private business interests” and to “prevent any possible perception of a conflict of interest arising in the future”.

He added: “When I was appointed chair of HIE, I agreed with the chief executive of HIE and the managing director of Rocket Science UK Ltd that we should immediately put in place a protocol to manage potential conflicts of interest that would arise if HIE and Rocket Science were to continue to have contractual business relationships.

“Both parties agreed that such a protocol should be established, the effect of which would be that I, as chair of both bodies, would be completely excluded from any and all aspects of the business relationship between the parties. The protocol was established and has been in existence ever since.”

Internal audit

Mr Cumming said HIE would be putting in place a tough monitoring regime in the wake of the report, which would include require all negotiated contracts worth more than £10,000 to be signed off by the HIE chief executive.

He added: “This has been a detailed and rigorous investigation of a complex issue, carried out to the highest professional standards by HIE’s head of internal audit and compliance.

“HIE aspires to be an exemplar of best practice in all the things it does, and the procurement of consultancy and other contracts should be no exception.

“I am confident that the procedures which HIE is putting in place as a result of this review will address the areas of weakness in the present system and ensure greater clarity and accountability from now on.”

‘Sad news’

Rocket Science said its work with HIE had actually reduced significantly since Mr Roe took on his role as chairman of the enterprise body.

The work carried out for HIE last year accounted for less than 1% of the turnover of Rocket Science, it added.

Rocket Science managing director Richard Scothorne said: “It should be very clear from this that we have not received any kind of special treatment since Willy Roe’s appointment as chair of HIE.

“Willy Roe is a hugely imaginative and inspiring public leader who is devoting his talent to creating a better Scotland.

“His resignation is sad news for us, and we admire him for taking this lead in completely removing any scope for perceived conflict of interest by decisively separating his public responsibilities and private interests.”

Commenting after the internal audit into the role of Willy Roe and dual responsibilities as Chair of HIE and of Rocket Science, Mary Scanlon, Scottish Conservative MSP for the Highlands and Islands said:

“This report has highlighted the failure of Mr Roe to update his register of interests in HIE and his failure to include 7 of the 21 contracts awarded in the register.  The investigation has also uncovered the fact that a contract worth £42,348 was awarded to Mr Roe’s private company and not put out to tender.

Many IT companies across the Highlabnds and Islands have been excluded from tendering for HIE contracts due to the awarding of so many contracts to Rocket Science.  In the depths of a recession, even one of the contracts awarded to Rocket Science would have helped to keep a small business afloat.

This investigation has confirmed the HIE did not follow correct procurement procedures.

I am now asking the Scottish Government to ensure that these incorrect procurement procedures are not replicated in any other quangoes and to ensure that Chairmen and Board members are not given preferential treatment in the awarding of lucrative public sector contracts’.

The recommendation of ten separate courses of action by HIE, following this investigation, is confirmation of the failures inherent in their existing systems.

Finally, there is no doubt that we would not have seen any report into HIE’s procurement process had there not been pressure and serious concerns raised in the media as well as my request for Audit Scotland to intervene.     HIE were obviously content to continue their current protocols of not pursuing any best practice models of fairness, openness and accountability in the awarding of contracts’.

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Rob Gibson MSP calls for talks with HIE over £100,000 controversy

TROUBLED business development agency Highlands and Islands Enterprise (HIE) must review its procedures if an internal investigation finds rules were broken when approving £100,000 of work to its chairman’s own company, according to an SNP politician.


Rob Gibson has called for a meeting with HIE bosses as soon as possible to discuss the controversy surrounding the probe into 15 contracts awarded to chairman William Roe’s Edinburgh-based firm, Rocket Science.

The results of an internal audit, overseen by Audit Scotland, are due to be delivered next month, but Mr Gibson wants MSPs to be allowed to discuss the matter with top officials now.

“The sooner the better, because we can always have another one when they publish the results,” said the Highlands and Islands MSP.

“Transparency is everything and a meeting with MSPs at an early stage would be a useful idea.

“They need to follow the rules and if they aren’t adequate to avoid conflicts of interest then it’s time to review those rules.

“The first of which is for MSPs to actually meet officials at Highlands and Islands Enterprise and discuss the rules with them because this crisis has arisen.”

Mr Gibson has also backed calls for HIE to change its policy and make board meetings public again, after halting open meetings in June 2007.

An HIE spokeswoman pledged it will publish a report on the audit findings on its website when it delivers its response to results next month.

“The audit committee will examine the report and make recommendations on any follow-up actions which members decide may be necessary,” she added.

MSP calls for talks with HIE over £100,000 controversy

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Resignation hint for Highlands and Islands Enterprise agency chairman over contract row

MSP says enterprise boss should question his future as investigation begins

Willie Roe: embattled

The chairman of Highlands and Islands Enterprise (HIE) is being asked to consider resigning following Press and Journal revelations that a major investigation is under way into contracts awarded to his private company.

Willie Roe is also chairman of Edinburgh-based consultancy Rocket Science, which in recent years won work worth more than £100,000 from HIE.

Highland Tory MSP Mary Scanlon said yesterday: “It’s not for me to call for Willie Roe to resign, but I think at the point he becomes an embarrassment to an excellent organisation like HIE, he needs to question his future.”

The investigation, which will be overseen by Audit Scotland, is looking at 14 contracts awarded to Rocket Science after the company was accused of using plagiarised material in one of its reports for HIE.

Rocket Science repaid an £8,000 consultancy fee after it came to light that the consultancy had allegedly used information from two academic studies in this consultancy report.

Only two of the 14 contracts now under investigation were by competitive tendering against other firms, according to HIE documents.

The remainder were awarded through the “negotiated procedure”, which is used for all contracts below £10,000. Under this process, the contract is not advertised for tender.

According to HIE, all contracts worth more than £10,000 and less than £50,000 are “presumed” to be put out for tender.

However, a contract worth £26,085 was awarded to Rocket Science in 2005-06 without being tendered, seemingly against HIE’s rules.

The HIE documents show that this contract was for work on HIE’s Integration of Quality Plan, including development of e-scorecards used for monitoring business performance.

HIE said on the procurement process: “Rocket Science UK Ltd was the only supplier with the skills and knowledge to deliver service.”

The company also won a £15,450 contract in 2005-06, when the firm was up against four other companies for the tender. The work involved analysis of best practice following a defence base closure.

The other contract won by this method was for business workshops in Moray. It was worth £8,351 and Rocket Science was up against another four companies for the work.

The other non-tendered contracts were worth between £666 and £8,693 and included work for Careers Scotland, HIE’s Big Lottery Project and speed networking events.

Mrs Scanlon said it was “premature” to call for Mr Roe’s resignation, but said: “It may be in light of this experience that more openness is required, particularly in terms of board members benefiting from contracts.

“It is only fair to go through the normal internal audit by HIE and review by Audit Scotland. It is appropriate that is done thoroughly and openly, then any further action will be considered.

“This is important because just one of these contracts could keep a small business going for a year in these difficult times.

“What had not instilled confidence were stories that Rocket Science lifted university research and passed it off as their own to gain a contract.

“They have paid the money back, but that sort of thing has not engendered confidence.”

Rocket Science managing director Richard Scothorne said: “I very much welcome the opportunity the inquiry provides to show that our work was carried out to the highest professional standards.”

********************

William Roe, chair

Willy Roe has been Chair of Highlands and Islands Enterprise since September 2004. He also chairs the board of the new government agency, Skills Development Scotland; and is Scotland Commissioner on the UK Commission for Employment and Skills. He is a member of the Innovation Programmes Committee of NESTA, the National Endowment for Science, Technology and the Arts.

Mr Roe is Chair of Rocket Science UK Ltd, a company that provides consulting services and solutions for national and local government in economic development, lifelong learning, welfare to work, regeneration and innovative financial partnerships to support sustainable growth.  He has advised many government departments and public agencies in Scotland and England and financial services and technology companies both in the UK and North America.

His international experience includes: Former director of first EU programme to combat long-term unemployment – ERGO;  former adviser to government of Bulgaria on development of civil society.  Former adviser to government of Poland on labour market reforms.  Former adviser on local enterprise development in Atlantic Canada.  Adviser and facilitator to Futures Ireland programme for the government of Ireland.  Board member, Training and Development Corporation, Maine, USA.

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Highlands and Islands Enterprise agency launches probe into contract awards

HIE chairman also ran consultancy at centre of plagiarism row

By Jonny Muir Press and Journal

william-roe

MAN IN THE MIDDLE:
HIE chairman William Roe

Highlands and Islands Enterprise is to carry out an internal audit of contracts worth almost £100,000 that were awarded to a consultancy firm run by the agency’s chairman.

The investigation will examine 15 contracts awarded to Edinburgh-based Rocket Science, which is run by William Roe, who is also the chairman of HIE.

The announcement of the audit, which will be overseen by Audit Scotland, comes a month after Mr Roe’s company repaid HIE an £8,000 consultancy fee following an allegation that Rocket Science plagiarised information from two academic studies.

The audit will establish whether there was any further plagiarism in another 14 contracts – worth a combined £95,494 – that were awarded to Rocket Science between 2005 and this year.

The decision to investigate was revealed in a letter from Audit Scotland to Highlands and Islands MSP Mary Scanlon, who has lobbied for an audit.

Last night, Mrs Scanlon said she was pleased the audit would be carried out but called on Audit Scotland to carry out a further inquiry into the number of contracts awarded to Rocket Science that did not go through a tendering process.

She said an investigation was necessary to reassure the public that “contracts awarded by any quango are completely transparent”.

In the letter to Mrs Scanlon, Audit Scotland portfolio manager Bob Leishman said: “Contracts should only be awarded following appropriate procedures, including tendering action, and approval.

“In response to inquiries from other elected representatives, HIE has asked its internal audit team to review the contracts awarded to Rocket Science. Audit Scotland will monitor the outcome of that review on behalf of the auditor general.”

Conservative MSP Mrs Scanlon said: “Concerns were raised with me when it was discovered that Rocket Science had received some £117,000 of contracts from HIE while both organisations had the same chairman in William Roe.

“Not only were concerns raised about the propriety of these transactions, it has now been revealed that one of the reports dealing with skills utilisation was full of plagiarised comments from two other reports.”

She added: “Audit Scotland state in their response that there are no specific restrictions in terms of bidding for contracts but they say, ‘Contracts should, however, only be awarded following appropriate procedures, including tendering action’.

“The fact is that of the 15 contracts Rocket Science won from HIE, only two went to tender. I have now written again to Audit Scotland to ask if this additional information will lead them to investigate the situation with HIE and Rocket Science.

“The public must be sure that contracts awarded by any quango are completely transparent. Stricter guidelines may be a way of restoring public confidence.”

An HIE spokeswoman said: “As soon as plagiarism of the skills-utilisation study was identified, Rocket Science notified HIE and refunded our fee.

“In the light of this, our head of internal audit and compliance is now reviewing all previous reports submitted to HIE from Rocket Science to ascertain whether the example recently publicised is a one-off occurrence.”

The audit is expected to be completed by the end of the month.

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Growth being led by developers, says campaigner

ASK Barrie Haycock why he decided to move to Inverness, he will tell you it is because he thought the Highland Capital was a good place to come to.

Growth being led by developers, says campaigner
By Calum Macleod – Inverness Courier

Four and a half years on, ask him if it is still a good place to come to and he hesitates.

“It’s difficult,” he said.

“It’s no better than other areas throughout the UK. The bottom line is that Inverness has the opportunity to learn from other areas and plan accordingly but no-one seems willing to do it.”

This apparent unwillingness to get to grips with the area’s planning deficiencies seems even more surprising to Barrie given the Highlands’ economic reliance on tourism.

“Tourists do not travel to see rows of soulless housing,” he pointed out.

For Barrie, who retired from a career in business at the age of 50, coming to the Highlands was an easy move to make as communications technology allowed his own public relations and allied services firm to operate from anywhere he chose.

He still enjoys getting out on the hills at the weekends and journeying to the unspoiled West Highlands, but soon learned that other parts of the region, not least Inverness itself, were going through what he describes as a quantum change.

To Barrie, Inverness’s rapid growth is being led by developers at the expense of community benefit and with little or no strategic planning or effective planning control “The emphasis in Inverness is on trying to build houses and then try and sort out the problems afterwards,” he said. “Exhibit A is the new trunk road with talk of bulldozing the new church at Inshes and compulsory purchase of properties. You would have thought they would have reserved the land, but that would be too easy.

“There is a growing view of many people in Inverness that the council should firmly get to grips with the situation and control planning so that development can take place in a properly thought out manner.

“Consultation is a joke. It’s a meaningless word in the planning process. Objections are rarely listened to and it’s the will of the developer that prevails over the will of the community.”

His awareness of discontent with the planning situation in Inverness was only heightened by his involvement with local community organisations.

Barrie is a founder member of the Milton of Leys local residents association, a member of Inverness Crime Prevention Panel and an Inverness South Community Councillor. More recently he has become involved with the Highlands and Islands Resilience Group, a disaster planning initiative designed to look at how threats such as pandemic influenza and terrorism could affect the Highlands.

These activities bring him into regular contact with a range of business owners, chamber of commerce members, police officers, community leaders, MPs, MSPs and Highland Council officials and local councillors.

A common topic of conversation has been concern at the way Highland Council is being run and its rapidly growing external debt problem which, by March this year, stood at a gross figure of 580 million.

The loss of prime farm land to residential housing with no meaningful infrastructure is another area of concern.

It was a prominent local councillor who initially suggested that a “Planning Watch” organisation was needed.

Barrie took up the suggestion and, as communities throughout Britain have similar issues to Inverness, widened the remit to create Planning Watch UK.

The organisation’s aims, objectives and interests are not confined to property matters. The regulation of the building industry, including land maintenance and property management companies, remains of prime importance.

“At present the new house build purchaser has been described by the National Consumer Council as having less consumer protection in law than when buying a kettle. This cannot continue and in general allows developers to make huge profits at the expense of the unsuspecting purchaser,” Barrie declared.

Nationally, Planning Watch UK members and contributors are working with MPs, MSPs and other organisations to introduce legislative changes to give houseowners the protection they need, just as locally the organisation wants to see more evidence of meaningful strategic planning.

Barrie Haycock, Planning Watch UK campaigner.

“The developer profit-driven process ignores the crucial requirement of infrastructure,” Barrie commented.

“Any future development must also look at education, health and transport services through to the massive number of jobs required to support the growing communities.”

Equally important are forward planning for roads, sewage and water supply and potential flood risk in certain areas. While there are plenty of bad examples of planning in Britain Telford in Shropshire or Scotland’s post-war New Towns there are also more positive designs which the Highlands could look to, such as Poundbury in Dorset. Designed by architect Leon Krier for landowner Prince Charles, this is an integrated community of shops, businesses and private and social housing and one which the planners of the Highlands would be advised to follow, Barrie suggested.

There are similar projects proposed for the Highlands, such as the “New Urbanist” community at Tornagrain, but for Barrie these being built are on too limited a scale and the principles which they adopt should be applied throughout the Highland region.

His work for Planning Watch UK and his other activities does take up a lot of his time and includes researching and studying local authority documents or fielding inquiries from journalists, but it is something he enjoys. “I don’t like to see people misled or ripped off and I have particular empathy and concerns for elderly people who are hung out to dry by the process. Who do they turn to for support?”

Barrie is scathing of a council which, he says, “would rather spend 300,000 on a fireworks display than care of the elderly.”

“The elderly are always the first to suffer when councils run into funding problems, yet the fat cat desk jockeys who decide the financial cuts continue to thrive,” he stated.

“This issue is constantly being raised by those who suffer and is a high priority for Planning Watch UK. Care of the elderly, young and disabled has to be of major importance but is so often put at the end of the bureaucrats’ list.”

Which is why Planning Watch UK highlights anything it regards as a waste of taxpayers’ money and wants to see local authority and government quango spending kept under strict financial control.

“A local example seems to be the bizarre reported redundancy payouts made to HIE members of staff, some of whom seem to have moved to highly paid new jobs some within Highland Council while collecting massive redundancy payments. This is an absolute disgrace!” he declared.

Barrie stood as an Independent candidate in the 2007 Highland Council election for Inverness South and came last, but reveals that he feels happier outside the political system.

“If you are part of the current system, you could very quickly get drowned under the current method of operation,” he said.

That system has been made even less effective, he believes, by the recent move to a party political council from one with a tradition of political independence and the creation of multi-member wards.

“The multi-councillor ward system isn’t working, full stop. None of the councillors can agree amongst themselves. End result: chaos,” Barrie said.

“Our councillors are paid salaries now, so there should be accountability all the way down from the chief executive to the most junior councillor.”

What is not so important, to Barrie at least, is the political hue of those councillors or even the MPs and MSPs.

“I’m apolitical,” Barrie stated.

“I don’t give a damn what party is in power as long as there are sensible policies from that party and I believe most people think the same.”

c.macleod@inverness-courier.co.uk

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The true cost of Quangos to the UK Tax Payer

Quangos: The Unseen Government of the UK

The most comprehensive picture ever of the UK’s 1,162 Quangos

The TaxPayers’ Alliance (TPA) presents the full list of the UK’s vast quango industry, a detailed run-down of the staff and cost of the 1,162 bodies, boards and agencies that make up Britain’s Unseen Government. It is now five years since the Parliamentary Select Committee on Public Administration recommended that the Government publish such a list, a recommendation that the Government has failed to fulfil. In the absence of an official list, the TPA has compiled one instead, providing the public with the most comprehensive information available on the organisations that increasingly spend their money and influence their lives without democratic oversight. The report can be found here (PDF).

Key Findings:

  • There are 1,162 quangos in the UK, running at a total cost to the taxpayer of £64 billion, equivalent to £2,550 per household.
  • Even under the Cabinet Office’s restrictive definition of quangos, the cost of these bodies has risen 50% in the last ten years.
  • UK quangos now employ an army of almost 700,000 bureaucrats.
  • Even the Government itself does not know the full extent of the unaccountable quango industry, which range from the massive e.g. Job Centre Plus (Staff: 70,042, Cost: £3.5 billion) and the Courts Service (Staff: 19,986, Cost: £704.8 million); to the bizarre e.g. the British Potato Council (Staff: 49); or the West Northants Development Corporation (Staff: 34, Cost: £15.3 million)
  • When the total number of quangos is added to the other government subsidiaries such as local authorities and NHS trusts, the total number of organisations controlled by the UK Government rises to 2,063, costing the taxpayer £257 billion and employing over 5.1 million people.

Ben Farrugia, author of the report and Policy Analyst at the TaxPayers’ Alliance, said:

“Government in the UK is now so large, diverse and complex that it is impossible for anyone to manage effectively, let alone by Ministers with no prior experience of management and little in-depth understanding of the work carried out by their departments. Government today tries to do too much, and consequently fails; the structure of government needs to change if we hope to see better value and significant improvements in our public services.”

The full report provides a full list of the quangos along with individual data on staff numbers, taxpayer funding and expenditure as well as national totals and can be found here (PDF).

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