Audit Scotland launch probe into ferries fiasco contract at Ferguson's

The news comes following the revelation that the man appointed by the Scottish Government to deliver the vessels and save the shipyard was paid nearly £800,000 from the public purse last year.

Turnaround director Tim Hair received £2,565-a-day in a pay deal which has been branded 'grotesque' and 'extraordinary' — with no date in sight for delivery of the two heavily delayed ferries.

Following an enquiry from the Telegraph, Audit Scotland confirmed that a 'performance audit' is imminent and that it will also examine the remuneration of senior staff at the yard.

A spokesperson for the independent body said: "Audit Scotland will shortly commence a performance audit looking at the financial management of the contract to deliver vessels 801 and 802.

"The detailed scope of the audit has not yet been determined, but it will consider the arrangements and costs for completing the two vessels."

MV Glen Sannox (formerly 'Hull 801') and the as yet unnamed 'Hull 802' are currently five years behind schedule and it is believed the original £97m price tag for the ships could top £300m.

Inverclyde businessman Sandy Easdale — who looked into acquiring Ferguson's when it entered administration in 2014 — has waded into the controversy, saying the yard has become a 'national embarrassment'.

Sandy Easdale

In a strongly-worded letter to SNP parliamentary candidate Stuart McMillan, Mr Easdale has demanded 'an explanation of the reasons why public funds are being so openly misused at Ferguson's'.

Mr Easdale tells Mr McMillan in the letter: "The people of Inverclyde are sick of this national embarrassment and I am sick of this willingness to throw my hard-earned tax contributions around like confetti."

The Telegraph told yesterday how Mr Hair — who was paid £791,285 between January 1 and December 31 last year — has refused to be interviewed after we invited him to justify his pay packet.

But Audit Scotland is set to look at how the figure was arrived at, with the spokesperson stating: "Auditing the remuneration of senior staff forms part of our annual audit work.

"Ferguson Marine (Port Glasgow) Ltd's external auditors will audit the compliance and accuracy of these amounts as part of their 2020/21 annual audit.

Ferguson Marine, Port Glasgow.

"Public bodies must be satisfied and demonstrate that they are achieving value for money in their use of public funds.

"The Auditor General will consider the auditors findings upon the conclusion of audit."

The statements from Audit Scotland came after Scottish Labour deputy leader Jackie Baillie called for it to 'urgently undertake a forensic inquiry into the financial management of Ferguson Marine'.

Businessman Mr Easdale said: "The situation at Ferguson’s since the first administration has been nothing short of a national scandal."

He added: "When you think the situation can’t get much worse then news breaks that £790,000 of public cash is being paid to a consultant to run the yard.

"This is while staff are leaving in their droves because they no longer want to be associated with the scandal that the SNP Government has created there.

"Ferguson's is a relatively small facility and should be simple to manage with the right people and processes.

"However, there is a lack of accountability and we are seeing tax contributions thrown around like confetti.

"I'm sick of it and I know the people of Inverclyde are too."

Ferguson's say that Mr Hair's financial package was 'well within' what is termed a 'benchmarking exercise' to identify market rates.

Alba Party candidate Chris McEleny described the deal as 'grotesque' and Inverclyde Council leader Stephen McCabe called it 'extraordinary'.