Baroness Scotland criticised for awarding contract to buddy’s agency

The secretary-general of the Commonwealth, Baroness Scotland, has been strongly criticised by inner auditors for awarding a profitable consultancy contract to an organization run by a private buddy.

The worldwide organisation’s Audit Committee accused her of “circumventing” the standard aggressive tendering guidelines by awarding a £250,000 fee to KYA International.

The agency, owned by fellow Labour peer, Lord Patel of Bradford, was contracted to hold out a assessment of the Commonwealth Secretariat, the physique headed by Girl Scotland from London.

However the audit committee report claimed that Lord Patel’s agency was “apparently bancrupt” on the time with money owed price greater than £40,000. And it said that the Commonwealth Secretariat was unable to supply the auditors with KYA International’s closing report setting out its suggestions.

The committee’s report – obtained by the BBC – expressed issues that the Secretariat’s “acts and omissions” in relation to the contract – and different alleged failings it identifies – “[endanger] the integrity” of the establishment and danger “severe reputational if not precise harm”.

Girl Scotland’s legal professionals insisted the choice to award the contract was totally justified and complied with procurement procedures on the time.

The Secretariat is the central administrative hub for the Commonwealth, made up of 53 international locations – lots of them former British colonies – which embody virtually a 3rd of the world’s inhabitants.

The crucial report might elevate recent questions on whether or not Girl Scotland shall be given a second time period of workplace by Commonwealth heads of presidency once they meet in Rwanda later this 12 months.

There may be already disquiet amongst some member states about the way in which the Secretariat has been run.

The BBC understands that one main Commonwealth nation has not too long ago stopped giving funds to the establishment.

Girl Scotland and Lord Patel had been as soon as Labour ministers collectively within the Home of Lords.

The investigation into his appointment was carried out by the exterior accounting agency KPMG in September final 12 months on the request of the Commonwealth Excessive Commissioners in London, who collectively kind the worldwide organisation’s board of governors.

KPMG discovered that the consultancy contract was given to Lord Patel in April 2016 on “the non-public advice from SG Scotland” as a result of he had “a excessive degree of confirmed belief with the secretary basic”.

Girl Scotland requested one among her deputies to fill out a kind waiving the standard aggressive tendering guidelines, which she then accepted.

The audit committee mentioned the preliminary contract was for £90,000 inclusive of VAT for 3 months’ work.

That was then prolonged for a second contract price £162,000 for an additional six months’ work, it claimed, and no different agency was thought of.

In line with KYA International’s accounts, the agency on the time had belongings of £971 and money owed of £48,762.

In its report, dated 21 November 2019, the Commonwealth’s audit committee mentioned: “Awarding an apparently bancrupt firm two contracts totalling £252,000 is uncommon.”

The committee mentioned it was involved that “disclosing an actual or perceived battle of curiosity after which instructing a subordinate to arrange the waiver to be able to approve it circumvented a basic management within the procurement course of”.

It additionally discovered that the Secretariat had no register both of tender waivers or conflicts of curiosity and was unable to elucidate why not.

Underneath Commonwealth guidelines, aggressive tendering procedures might be waived in sure circumstances, corresponding to if a call must be taken urgently or if there will not be sufficient suppliers.

The committee recognized no fewer than 50 events between July 2015 and June 2018 when the standard procurement tenders had been waived by the Commonwealth Secretariat.

A few of these selections predated Girl Scotland’s appointment in April 2016.

The report concluded: “The audit committee is anxious that the acts and omissions set out above in addition to the absence of any rationalization for…