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Probe reveals contract concerns Probe reveals contract concerns
(about 1 hour later)
Scotland's chief water regulator has been criticised after a BBC investigation revealed concerns over the handling of a £1.5m contract.Scotland's chief water regulator has been criticised after a BBC investigation revealed concerns over the handling of a £1.5m contract.
Sir Ian Byatt, chairman of the Water Industry Commission for Scotland (WICS), is at the centre of conflict of interest allegations.Sir Ian Byatt, chairman of the Water Industry Commission for Scotland (WICS), is at the centre of conflict of interest allegations.
His organisation awarded the contract to Frontier Economics, a firm he has a close association with.His organisation awarded the contract to Frontier Economics, a firm he has a close association with.
WICS denied the allegations and said Sir Ian was not involved in tendering.WICS denied the allegations and said Sir Ian was not involved in tendering.
Sir Ian has been senior associate with Frontier since 2000 and also works as a highly paid consultant for the company.Sir Ian has been senior associate with Frontier since 2000 and also works as a highly paid consultant for the company.
The commission denied any impropriety and insisted Sir Ian played no part in the tendering process. The commission denied any impropriety.
More transparencyMore transparency
However, it has failed to provide any clear evidence that he declared the potential conflict during the three month tendering process.However, it has failed to provide any clear evidence that he declared the potential conflict during the three month tendering process.
It is not recorded as mentioned until 7 February, the day before the contract was awarded.It is not recorded as mentioned until 7 February, the day before the contract was awarded.
Under the banner of "Water" on the Frontier website, Sir Ian appears next to Dan Elliot, who was responsible for spearheading Frontier's bid to the WICS.Under the banner of "Water" on the Frontier website, Sir Ian appears next to Dan Elliot, who was responsible for spearheading Frontier's bid to the WICS.
It is this close association, and the "appearance of a potential conflict of interest", which has led to Des McNulty, Labour MSP and long time industry observer, to call for more transparency.It is this close association, and the "appearance of a potential conflict of interest", which has led to Des McNulty, Labour MSP and long time industry observer, to call for more transparency.
He said: "I would hope that an appropriate clarification can be arrived at that the tender has been let appropriately.He said: "I would hope that an appropriate clarification can be arrived at that the tender has been let appropriately.
"We need to make sure that, in Sir Ian's responsibilities with the commission, and with his duties at Frontier, no conflict of interest has taken place.""We need to make sure that, in Sir Ian's responsibilities with the commission, and with his duties at Frontier, no conflict of interest has taken place."
"Given the close association with Frontier careful attention was required to make sure the process was transparent."Given the close association with Frontier careful attention was required to make sure the process was transparent.
Mr McNulty added that if this is found not to be the case then further investigation would be required.Mr McNulty added that if this is found not to be the case then further investigation would be required.
Sir Ian has a long history in the water sector and is largely associated with overseeing the privatisation of the industry in England and Wales.Sir Ian has a long history in the water sector and is largely associated with overseeing the privatisation of the industry in England and Wales.
He was an adviser to Margaret Thatcher, and the UK water regulator between 1989 and 2000.He was an adviser to Margaret Thatcher, and the UK water regulator between 1989 and 2000.
Tender processTender process
His appointment to the WICS was greeted with dismay by many in 2005 as it was seen as a move towards the privatisation of Scottish Water, one of the last remaining utilities companies in the public sector.His appointment to the WICS was greeted with dismay by many in 2005 as it was seen as a move towards the privatisation of Scottish Water, one of the last remaining utilities companies in the public sector.
WICS was established to set the water rates and make sure Scottish Water's £1bn a year budget is being spent properly.WICS was established to set the water rates and make sure Scottish Water's £1bn a year budget is being spent properly.
Sir Ian's supporters said he played an essential role in improving the performance of the company.Sir Ian's supporters said he played an essential role in improving the performance of the company.
Sir Ian, who earns £46,000 per year for the two day per week role, was unavailable for comment but WICS stressed that their tender process "satisfied statutory requirements".Sir Ian, who earns £46,000 per year for the two day per week role, was unavailable for comment but WICS stressed that their tender process "satisfied statutory requirements".
A Scottish Government spokesman confirmed it knew of Sir Ian's association with Frontier and was unaware of any impropriety.A Scottish Government spokesman confirmed it knew of Sir Ian's association with Frontier and was unaware of any impropriety.
The BBC has passed its files to Audit Scotland, the public finance watchdog, which will look into the matter.The BBC has passed its files to Audit Scotland, the public finance watchdog, which will look into the matter.