Tendering for Hospitality

Obviously, it may be that there has been no wrong doing but it beggars belief that Council employees would accept hospitality at any time, never mind when going through the tendering process. There was a public outcry at the MP's expenses revelations earlier this year, this is not on the same scale but is just as serious. It will be interesting to see if the contracts are put out to tender a second time.
The article
An inquiry has been launched after senior officials at Glasgow City Council breached their own code of conduct when they were entertained by a private firm before it secured almost £2 million worth of contracts from their department.

A dozen leading managers from land and environmental services were wined and dined at this year’s £50-a-head Lord Provost’s Burns supper by Maclay Civil Engineering, at a time when the company was tendering for contracts from the department.

Four of these tenders were successful, although there is no evidence to suggest this was a direct result of entertaining the officials. However, acceptance of hospitality is a breach of council rules. The Labour-led authority’s code of conduct states no officer should take gifts or hospitality during a tendering process.

The council’s audit team is now probing whether there has been any inappropriate behaviour.

Lawyers have also warned that such conduct could fall foul of the incoming Bribery Act 2010, with receipt of corporate hospitality from a company tendering for work with that authority a breach of the legislation.

Today’s revelation will again lead to allegations of cronyism at the City Chambers.

Among those entertained by Maclays at the Burns supper in the Thistle Hotel in Glasgow’s Cambridge Street on January 29 were deputy director George Gillespie, head of roads Andy Waddell, and David McClelland, head of service development, whose post includes overseeing procurement.

At the time, Maclays, which was formed in 1975 and is based in Airdrie, North Lanarkshire, was tendering for work at Govan Cross and the city centre which The Herald understands had a collective value of £1.8m.

The council’s code of conduct states: “Hospitality must not be accepted knowingly during the tendering period of a contract and councillors/officers should always be aware of the possibility that the contractor/consultant offering hospitality may be tendering for a contract elsewhere in the council.

“The clear rule of thumb is that, when in doubt, politely refuse.”

Minutes of a meeting of senior land and environmental services (LES) officials barely a fortnight after the Burns supper noted that “managers were asked to be mindful re hospitality requests”, with department head Robert Booth “asking the division heads to provide him with a note of the dinners that LES take tables at”.

SNP councillor Graeme Hendry, who was integral to the revelations about expenses abuse at Strathclyde Partnership for Transport earlier this year, tabled a Freedom of Information request about the Maclays procurement. He said: “I am glad the council is investigating this fully as it looks like a potentially serious breach of the code of conduct. With new legislation coming in, I suspect the council will need to tighten up its procedures for accepting hospitality.”

Last night, trade unions condemned the breach of the code.

Unison’s Chris Stephens said: “Once again the issue of relationships between LES and contractors has been called into question. Our members believe some of this work should be done in-house and increasing the amount of work to be sub-contracted will only lead to fears that something is not quite right.”

Martin Doran, of the GMB, said: “The appearance this sends out is that nepotism and cronyism is alive and well within Glasgow. Officials cannot be wined and dined by contractors when tenders are under way.”

A Glasgow City Council spokesman said: “Every council service is asked to approach suppliers and contractors to support the Lord Provost’s Burns Supper by buying or sponsoring tables.

“However, an allegation has been made and is now being treated like any other complaint.”
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