Brodies, the Edinburgh law firm, were the main financial beneficiaries of the failed Borders waste management contract which has so far cost local taxpayers £1,968,160, Not Just Sheep & Rugby can reveal.
The specialist legal team from Brodies, appointed by Scottish Borders Council to advise on the procurement of a contract said to be worth more than £80 million with New Earth Solutions (NES) - a contract which was terminated in turmoil earlier this year - collected fees totalling £679,316 from the local authority.
Information obtained via a Freedom of Information request also shows that D & P Management, the company run by Barry Phelps, the council's chosen procurement expert, was paid £302,803. Between them, Brodies and D & P Management accounted for almost half the money committed to the costly and ultimately disastrous venture.
Mr Phelps was no longer working at SBC when councillors radically amended the contract he helped to negotiate with NES to include an incinerator.
The Borders should have had a state-of-the art treatment facility at Easter Langlee on the outskirts of Galashiels by now. But there is nothing to show for the huge sums spent and the time devoted to the project, including SBC's own internal staff costs, stated to be £356,403.
Yet council leader David Parker told the Border Telegraph in March, not long after the contract with NES collapsed because of technological and funding issues: "Given the contractual obligations with NES, the money was used both appropriately and, we believe, effectively."
Others may take a different view, and it is believed there will be further costs related to the closing down of the contract. New Earth has refused to say how much the group spent over the four years of their contract with SBC which was supposed to last 24 years.
Brodies, in their annual review for 2011, said Scottish Borders Council had taken a long-term strategic view to deal with the problem of dealing with residual waste. The council had undertaken a rigorous process to select a private sector provider to treat the region's mixed municipal waste and manage its green waste and dry mixed recyclates.
Central to the strategy would be a new facility incorporating the latest mechanical and biological treatment (MBT) technology that would recycle and recover materials from the waste stream and ultimately lead to significant volumes of residual waste being diverted from landfill, thereby providing environmental benefits while minimising the Council's exposure to landfill tax and contributing towards it meeting the requirements of national and European legislation.
So where does the collapse of the project leave the council's waste strategy?
Here's how Brodies described their involvement in the Borders scheme.
"Our waste, environment and contract specialists advised on all aspects of the transaction, including waste law and policy, procurement, contract drafting, contract negotiations, oversight of the competitive dialogue process, preparation of the documentation for the call for final tenders, the legal and commercial evaluation of final tenders received and clarification and finalisation of all documents signed at completion."
The law firm's review also included the following contribution from the council's project manager: "Brodies' expertise across a whole range of areas has been invaluable in supporting us to achieve our goal. We were particularly impressed with the speed and efficiency which enabled the Council to move from preferred bidder appointment to contract close in only four months."
The list released under FOI shows three firms of technical, financial and project management consultants all picked up six-figure sums.
Here is the full breakdown of the various payments associated with the Easter Langlee scheme:
|
Company
|
Specialist Area
|
£
|
|
Brodies
|
Legal
|
679,316.51
|
|
Faculty Services
|
Legal
|
6,450.00
|
|
McGregors LLP
|
Legal
|
1,200.00
|
|
SLR
|
Technical
|
184,345.34
|
|
Holequest
|
Technical
|
8,566.85
|
|
Envirocentre
|
Technical/Environmental
|
32,744.02
|
|
Nevin Associates
|
Financial
|
143,401.25
|
|
QMPF LLP
|
Financial
|
2,750.00
|
|
D&P Management
|
Procurement
|
302,803.47
|
|
Willis
|
Insurance
|
10,600.00
|
|
SOLACE
|
Project Management
|
92,475.00
|
|
Practicus
|
Project Management
|
116,042.20
|
|
Project office Supplies
|
31,062.59
| |
|
Internal Staff
|
356,403.39
| |
|
1,968,160.62
|
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