Council's record breaking secret IT deal under fire

 by EWAN LAMB

The level of secrecy and lack of transparency surrounding a multi-million pound deal struck by Tory controlled Scottish Borders Council with IT giants CGI has been strongly attacked by the opposition SNP Group at the council.

Under the terms of the unprecedented arrangement CGI will continue to provide services to SBC without any tendering challenges until 2040, committing present and future local government administrations to a single company contract.

Members of the council's ruling group sanctioned the extension to 20 years at a private meeting in September. It was only this week that CGI issued a statement confirming one of the longest deals in the company's history. It followed the publication of a so-called Voluntary Ex-Ante Transparency (VEAT) notice indicating the council's intention to award the huge contract without inviting rival bids.

But SNP Group leader Councillor Stuart Bell, who was unable to publicly on the CGI deal until publication of the company's statement, today launched a fierce attack on the ruling group, claiming:" I despair of how the current Council Administration privately conducts its affairs in deciding how to spend public money."

He told us: "I am somewhat surprised that the financial extent of, and the year-by-year expenditure on this contract have not yet been made public".

Councillor Bell explained that while he was content that SBC continued its working relationship with CGI as an IT partner; and while improvements over the last four years of the contract with CGI had resulted in a more efficient and effective provision of services he did not think it either prudent or transparent for the Council to sign up in secret to a 20 year contract with its IT supplier.

He said: "It is a matter of public record (SBC Audit & Scrutiny Committee - Sept 2020), that in the first three and a half years of the current CGI contract the council and its partners failed to deliver over £5 million of targeted Digital savings. Lessons have been learned, but the CGI contract to date has not been without its challenges."

Councillor Bell pointed out that discussions by Councillors of the 'phenomenal contract extension' just announced were conducted under the confidentiality requirements of the Local Government (Scotland) Act of 1973.  So he was not currently at liberty either to inform his constituents of the details of what had been agreed, nor to tell the Scottish Borders public the millions of pounds of their (public) money which had been signed off in a binding commercial contract.  

"Council administrations only run for five years and this Tory-led administration have approved an agreement that not only commits the next administration to increased expenditure - and I am currently not allowed to say anything about that - but it has also committed the next four Administrations to a contractual relationship with CGI that to quote them is “.. the longest in CGI’s history..”

"I also cannot even tell the Borders public exactly what benefits they can expect to see from this contract. All that Council Tax payers are allowed to know are the broad sweeping statements in a Press release.  

"Two years ago, this Tory-led Administration agreed to spend over £10m of public money to buy a small Estate but all that so far has happened on that land at Lowood is that the grass has been cut. Again, this was decided in secret."

In their joint statement SBC and CGI claimed: "The extension, one of the longest in CGI’s history, gives CGI and Scottish Borders Council the opportunity to work together in a long term partnership to help the Scottish Borders realise its vision of becoming the UK’s first Smart Rural Region.  CGI will open a new office in Tweedbank in 2021, which will be a centre of excellence and through the partnership establish an international reference site in connected communities.

"Together, CGI and Scottish Borders Council will lead the way in creating a smart, connected rural region, which will digitally connect all Borders communities, supporting innovation, empowering a flexible workforce, advancing truly integrated partnership working, and providing solutions to allow greener, low carbon ways for a sustainable future.

"They will do so by advancing cutting-edge digital systems and processes for all the Borders’ citizens and employees in key areas such as social care, health, its world-class education IT programs, employment, the environment and sustainability."

Cllr Shona Haslam (Conservative), Leader of SBC said: “Scottish Borders Council is delighted to extend CGI’s contract until 2040. This extension shows the trust we have in CGI as a valuable strategic partner, sharing our long-term commitment to providing cutting-edge digital solutions to improve our public services, benefiting the council, our community planning partners and our citizens.

"Together we aim to make the Borders the most technologically advanced rural area in the UK. Beginning with our Fit for 2024 transformation programme, we will ensure the Borders is in the best shape to meet future challenges, attract new business to the region, take advantage of new opportunities and deliver the best possible outcomes for our communities.”