Resignation must be start of investigation

Commenting on the resignation of Alistair Watson, Chairman of Strathclyde Partnership for Transport and the complaint made to Audit Scotland, Councillor Graeme Hendry said: "Cllr Watson may have stood down but the embarrassment for Labour is not over.  There are real questions to be answered about the management of Strathclyde Passenger Transport.

"This resignation must mark the start of a thorough investigation into the practices at SPT - particularly among management and board members when it comes to expenses, travel and consultants.

"Alastair Watson is also an elected Councillor and Stephen Purcell must guarantee that he will not hesitate to act if any wrong doing is revealed.

"On Thursday 11th February I made an official complaint to Audit Scotland asking them investigate the use of public funds by Strathclyde Partnership for Transport.

"Over the past few weeks information has came into the public domain raising serious questions over the use of funds at SPT, including the expenses of the Labour chair of SPT, Alistair Watson . In these times of economic recovery everyone must pull together to work in the best interest of the country - that includes SPT.

"There must now be a full investigation by Audit Scotland to establish if there is any wrongdoing here by any Labour councillors."

MSP for Glasgow, Sandra White said: "It is simply unacceptable for public funds to be used irresponsibly, and, once again, it is Labour who are at the centre of an expenses scandal.

"The SNP Government have passed a Budget that will support economic recovery and protect frontline services, meanwhile three Labour MPs face criminal charges of false accounting, and in Gordon Brown a leader who has had to pay back the most in expenses of any Scottish MP  - over £12,000  - and now there are serious allegations about financial mismanagement by Labour councillors in Glasgow.

"When Gordon Brown finally has the courage to go to the polls, it will be clear to see that nobody trusts Labour. Everyone has a duty to play their part and ensure that the public get the fairest deal."

Notes:

Sunday Times story is here.

Copy of Councillor Hendry’s complaint to Audit Scotland:

FAO: Auditor General

I am writing to ask that you launch an investigation into the use of public money by Strathclyde Passenger Transport (SPT).  I have been concerned at the attitude shown by SPT to public money for some time, but over recent weeks information has emerged in the public domain which has increased my concern to the point where I feel an investigation into their use of taxpayer’s money is the only option.

I have attached links in this email, for your information, to a number of articles concerning SPT which detail the issues of concern I am about to express in this email.

In particular, I would like you to investigate the following uses of SPT money which I feel may be inappropriate.

1. Use of consultants.  From the attached documents you can see that SPT have made heavy use of consultants over the last couple of years.  I fully accept the need to use consultants for many projects and, in particular, the need to use them for the subway modernisation.  However I find it hard to accept that this scale of work is needed; indeed I suspect many of these reports simply duplicate each other, while others are on ideas that have no chance of coming to fruition and are commissioned simply to generate a press story.  It seems to me therefore that a large amount of public money may have been used inappropriately.

2. Patrick Interchange – I understand that this project was £6million over budget - and a number of years late - which raises questions over the management of this project by SPT.

3. Marketing budgets. SPT have spent over £800k in 2 years on advertising and marketing.  This is far in excess of any other transport partnership in Scotland and suggests SPT take a lavish approach to this are of expenditure; again, this may be a failure to use public money appropriately.

4. I have also heard that there are concerns at SPT Management conferences.  Is value for money achieve on these as I understand the 200/7/08 event was held in Crutherland House in East Kilbride at a cost of approximately £6000?  Was this a good use of taxpayers money?

5. Foreign trips.  This is yet another area  of SPT activity which needs to be thoroughly investigated.  SPT have in the last year travelled to India, New York, China and Prague to name just a few of the locations they have travelled to.  This seems extremely excessive to me and raises serious questions about the necessity of  and value for money achieved through, these trips.  I would ask that you investigate these trips and the extent to which taxpayer’s money may have been used inappropriately.  Specifically, I would ask that you ensure all trips are of a length appropriate to the work undertaken and have not had an excessive amount of extra time added on for leisure.

6. What reports are received back from foreign trips?

7. Has first class been used regularly on trips and if so is this an appropriate use of money?

As well as the issues raised above I would ask that you investigate the specific trip to Manchester raised in the Sunday Times article (link below)?  In particular, I would refer you to receipts shown on pages 13 -18 which show travel and accommodation costs for a trip to Manchester in 2008. This trip is of particular concern to me as it shows transport costs for three people from SPT having their expenses paid to travel to Manchester for two nights.  It also shows accommodation being paid for over two nights.

Link.

I would ask that you look into the following specific points:

1) Did SPT engineer a meeting in Manchester to coincide with the date of the UEFA Cup Final?  GMPTE have indicated in the articles that SPT initiated this meeting and specifically requested the date only after it became clear there was a good chance of Rangers qualifying for the UEFA Cup Final.  I would be keen to hear your view on whether or not this would be appropriate as it would seem to indicate the trip was organised to suit the personal agenda of those attending?

2) Why was accommodation claimed for two nights for what GMPTE describe as a short meeting on the morning of 14th May?  If this meeting was finished by lunch time on the 14th May, why did the taxpayer fund an extra night’s accommodation?

3) Who attended the meeting with GMPTE?  Did Councillor Watson attend this meeting and, if not, was taxpayer’s money used to fund a trip for him?  If he did not use the train ticket was a refund claimed?

4) Within the receipts there are claims for £138.82 for a meal, receipts indicate GMPTE attended, but it would seem GMPTE did not actually attend this lunch?  If GMPTE did not attend this lunch, who did and is that amount considered appropriate as a claim?

5) Expenses claims available via the attachments also show a taxi for £120 in Mr Wylie’s name was claimed on 15th May 2008 from Manchester to the hotel.  If the meeting and business was concluded by lunch time on the 14th May why would anyone need such an expensive taxi on the 15th May?  Are receipts available to show the timing of this taxi and can we be assured it was not related to the UEFA Cup Final he attended in a personal capacity?

I appreciate there are a number of issues raised in this enquiry, but as you will understand they are all of a serious matter and I believe it is vital these matters are investigated fully and expeditiously.

Thanks in advance for your work on this matter.

Graeme

Councillor Graeme Hendry
Scottish National Party
Ward 13 - Garscadden/Scotstounhill
Telephone: 0141 287 4466 Mobile: 07825521206

http://www.timesonline.co.uk/tol/news/uk/scotland/article7017930.ece
http://www.timesonline.co.uk/tol/news/uk/scotland/article7018012.ece
http://www.timesonline.co.uk/tol/news/uk/scotland/article7000114.ece
http://www.timesonline.co.uk/tol/news/uk/scotland/article6991163.ece