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Stornoway, Lewis

 

 

Comairle pays up to settle legal dispute      5/9/10

 

 

 

 

 

Western Isles Council is to pay an out of court settlement to a former councillor over a controversial long running legal dispute.

Stornoway firm Nicolson Accountancy owned by Sue Nicolson and her husband Angus - a former islands' councillor - sued the local authority in the Court of Session over claims that it deliberately skewed a tender for accountancy and financial services against them.

 

The legal action was against Sgoiltean Ùra - an entity owned and established by Western Isles Council to build and operate six new schools in a £115,000 project.

 

The Court of Session action ended last week without going to a hearing when the council agreed a cash compensation figure to drop the court action.

 

The Nicolsons initially sued for £76,600. The final undisclosed sum is believed to be less than but greater than an earlier rejected £10,000 offer from the council-owned schools’ body. In addition, the council will pay their legal fees.

 

The Nicolsons maintained they submitted the best bid for a three and a half year accountancy consultancy contract.

 

The summons claimed that Sgoiltean Ùra bosses changed the contract requirements after opening the bids but Nicolson Accountancy lost out again despite still offering the best tender which was 38% cheaper.

 

Instead, it was offered to rival accountancy firm CIB Services of Stornoway at a higher fee.

 

Sgoiltean Ùra took legal advice on how it handled the contentious tender.

 

At the same time, Malcolm Burr, Chief Executive of Comhairle nan Eilean Siar, headed a probe into all aspects relating to the administration and evaluation of the tender.

 

The investigation fallout resulted in council finance officer Mairi MacMillan undergoing disciplinary action. She was said to be involved in the contract process despite her husband Murdo being a senior partner in CIB which won the bid.

 

Her boss David Rattray, depute director of finance at Western Isles Council, was suspended over a related matter. He left the authority soon afterwards.

 

The contentious contract was frozen and later aborted preventing CIB Services from taking it up. The finance work was split into two fresh separate tenders and Nicolson Accountancy won one contract.

 

The Scottish Government is said to take a keen interest in the case as it is believed to be the first claim of biased or unfair dealing since SNP ministers revamped the PPP schools construction scheme.

 

Neither Nicolson Accountancy nor the council took up an offer to comment on the issue.