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Displaying 1407 contributions
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
Were you aware that the CMAL board wanted to stop the procurement process?
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
Were you aware at any point that the board wanted to stop the process?
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
How much knowledge did you have before you made the announcement? Did that announcement make it harder for you to go in and stop the contract? It would seem that it was CMAL’s preference to stop the tendering process, but you still went ahead with the contract.
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
Who took the decision to make the announcement in August?
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
So, it was you who took the decision.
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
So, before you made the announcement, you were aware that there were issues with the builders refund guarantee.
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
Can you tell us why the decision was made? You say that you look ahead for things. Was there a reason why it was to be announced in August?
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
At the time, were you aware that negotiations were still going on with CMAL?
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
I appreciate what you say about the mitigations giving the best contract for FMEL, but I think that CMAL would still have preferred to cancel the contract. The situation has been described as a systematic failure in Government to record crucial information, and there is a lack of accountability. The people suffering are islanders. What lessons have been learned from the situation and what actions have you taken to ensure that such a fiasco does not happen again?
Public Audit Committee
Meeting date: 4 November 2022
Sharon Dowey
There were so many red flags in advance of the announcement being made and the contract being issued, and they all seem to have been ignored. I have not seen your briefings, so I do not know whether you have not been briefed enough but, when Derek Mackay was asked whether he was concerned about the lack of a full builders refund guarantee, he said:
“Of course I was concerned, because the paper gave reason to be concerned”.—[Official Report, Public Audit Committee, 8 September 2022; c 25.]
On 26 September 2015, Erik Østergaard said:
“a newly established shipyard with no track record at all of building ferries of this size, is an unsecured risk”.
The CMAL board said in a letter:
“The Board feel it is their absolute duty to point out the risks to their shareholder and in that respect would expect approval, should SG wish this project to proceed, and to receive direction to that effect.”
There were lots of red flags, but it seems that the contract still went through.