Conservative MSP Jamie Halcro Johnston has questioned Highlands and Islands Enterprise (HIE) over the enterprise agency’s procedures when writing off public money.
With interim Chief Executive Carroll Buxton appearing before the Scottish Parliament’s Economy Committee earlier today (Tuesday 24th September), the Highlands and Islands MSP sought assurances over the agency’s check and balances when the decision is taken to write off money or when money is allocated in stages over a long period.
Ms Buxton confirmed that funding of £7.7m written off during the period 2014-2019 dated from commitments running back as far back as 1998. However, with HIE having submitted evidence to the committee that just £7,500 has so far been written off for the 2014-19 period, Ms Buxton accepted this figure would likely increase but would not put a figure on how much that increase could be.
Mr Halcro Johnston also highlighted discrepancies in the level of money allocated and the money actually drawn down between 2014 and 2019, and asked what checks and balances HIE undertook given that the whole business environment and the agency’s priorities could change over the intervening period.
Ms Buxton accepted that it could be several years before grant awards are fully paid, but confirmed the agency did apply due diligence to future transfers to ensure that the agreed outputs were delivered.
Speaking after the meeting, Mr Halcro Johnston said: “It was useful to have Highlands and Islands Enterprise in front of the Economy Committee, and to have the opportunity to scrutinise their processes and ensure the public interest is being served.
“I appreciate that there can often be a considerable period of time between when a grant is allocated and when that money is paid in full. And so it is important that Highlands and Islands Enterprise does ensure that, where money may be paid in stages over a long period, that the company receiving that money still meet the criteria the award was originally made on.
“It’s vitally important that public agencies – particularly those responsible for administering large sums of taxpayers’ money - are held accountable for that money when it is written off, and that the processes governing payments are transparent.
“I look forward to receiving further updates from HIE on the outcomes of its funding commitments.”
