MSP says enterprise boss should question his future as investigation begins
By Jane Candlish – Press and Journal
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.”
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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.
