MSPs 'misled' on transport deal

Published on Sunday 22 March 2009 18:18

A SCOTTISH Government agency was yesterday accused of misleading MSPs over the involvement of a top official in the awarding of a contract to a firm in which he was a shareholder.

Guy Houston resigned as the finance chief of Transport Scotland after a watchdog's report revealed he attended a meeting about a 2.5 billion franchise deal despite holding shares in FirstGroup, the company that won the contract.

Holyrood's public audit committee has been holding its own inquiry into the deal.

In January, Malcolm Reed, the chief executive and chairman of Transport Scotland, told MSPs that Mr Houston had "only ever participated at a very late stage in the process", attending two meetings "after the deal had been struck".

However, a Transport Scotland spokeswoman said yesterday: "Dr Malcolm Reed wrote to the public audit committee following his appearance, confirming Guy Houston had attended a number of meetings in addition to the two highlighted in his oral evidence on 14 January."

Labour's transport spokesman, Des McNulty MSP, said: "I am angry to now learn that MSPs were misled by Transport Scotland about Mr Houston's involvement in the deal. I am calling on the transport minister, Stewart Stevenson, to guarantee that all details of this growing scandal are now published."

A Transport Scotland spokeswoman said: "The Audit Scotland report praised the rigorous process for the franchise extension and Transport Scotland is committed to improving those processes further wherever possible. Ministers took the decision to award the contract."

Mr Houston will be questioned by MSPs when he gives evidence to the public audit committee on Wednesday.