The Chairman of Stornoway Port Authority, Angus Smith, his resigned from his post in the interest of the Port Authority.
Mr Smith’s resignation came after speculation regarding corruption concerning contracts awarded to an island engineering firm.
It was alleged that contracts had been awarded to the firm in question that lead to the financial gain of Port Authority Board members.
At the time of these allegations Jane Maciver, Chief Executive of Stornoway Port Authority, said: “I can say categorically that the engineering company referred to did not even tender for the works, no contract was awarded, no board member or other individual gained whether financially or otherwise.”
The Port Authority have now released the following statement regarding the cause of Mr Smith’s resignation: “At a Board Meeting on 17th July 2014 Captain Smith, who is a boat builder, declared his interest in a Board discussion regarding proposed works on a Port Authority vessel as he explained he might be helping a local engineer with his tender for the works.
“Following allegations made to the Board regarding Captain Smith’s potential involvement in the
works personally, an investigation was carried out and the findings of that investigation were
reported to the Board meeting held on Friday 24 October 2014 at which the Board determined
that no tender had been submitted by the local engineer, no contract had been awarded to that
engineer and no benefit of any kind had accrued to Captain Smith or the engineer.
“The Board also found, however, that his informal discussion with the engineer about how they
might work together amounted to a breach of its guidance for good governance and censured
Captain Smith for this. The Board did not regard this as a matter justifying Captain Smith’s
“The Board convened again on Tuesday 28th October to consider the extraordinary media
intervention following Friday’s Board meeting. In light of public perception, and in the interests of the Port Authority, Captain Smith tendered his resignation.”