The SNP’s £178million failure to deliver CAP payments could have knock-on effects across the government’s budget.
A damning expert report into the fiasco has suggested the IT system for delivering the cash may never be ready – and there is an “extreme risk” the administration could be hit with a fine of £125million from Brussels for failing to deliver the payments.
Audit Scotland said there was a conflict of interest in the IT program, which was commissioned to try and improve the delivery of payments, where one of the project leaders “could benefit financially from decisions he had an influence over”.
And the experts concluded there is a “risk to the Scottish Government budget” after the SNP had to dish out loans to farmers from the administration’s coffers.
The Press and Journal revealed yesterday that the former Cabinet Secretary Richard Lochhead, who oversaw the bungle, resigned from the government citing a desire to spend more time with his family.
Opposition politicians have blasted the SNP over the report, which contains a “litany of failure and staggering incompetence dating back two years”.
John Swinney said the government had been “open and determined” in responding to the “challenges involved in implementing” the new system.
But North East Liberal Democrat MSP Mike Rumbles said: “Audit Scotland has uncovered a litany of failure and staggering incompetence dating back two years.
“Throughout this critical reform the first instinct of the SNP was always to insist things were not as bad as they seemed instead of being upfront with farmers and parliament about the failures they were presiding over.
“If the new cabinet secretary hopes to start repairing the government’s relationship with the industry they must urgently clarify what steps will now be taken to minimise the enormous cost of SNP incompetence to farmers, crofters and the rural economy.”
Fellow North East MSP, Tory Alex Johnstone, said: “The SNP government has taken their eye of the ball and failed farmers and our rural communities.
“Now that Richard Lochhead has stepped down the first minister must urgently look to resolve this situation because livelihoods and jobs depend on it.”
Scottish Labour’s Jackie Baillie added: “There is now only six weeks until the payment window closes, and crofters and farmers are being sorely let down by the SNP government.”
But Deputy First Minister Mr Swinney said his focus was “remains 100% on getting payments out to farmers and crofters”.
He added: “Audit Scotland’s report, its third on the programme, is an important part of the process of learning the lessons from this programme.
“I’m determined that we do that, and we will study the detail of the report carefully.
“Once this is completed, the new rural economy secretary will make a statement to parliament to set out in full the government’s response.”
Fine of up to £125million
No farmers had been fully paid or had their payment entitlements finalised by the end of April.
The IT project is 75% over budget.
Government is facing a fine of up to £125 million because the “extreme risk” payments will not be completed by June.
There was a conflict of interest which meant one of the project leaders “could benefit financially from decisions he had an influence over”.
The delivery director had the opportunity to hire people through a recruitment agency which he owned.
The emergency loans to farmers “introduces risk to the Scottish Government budget, including risk of duplicate or over-payments, and delays to other spending if the loans are not repaid when expected”.
