The Scottish Mail on Sunday

SNP HIT BY £3M CRONY STORM

Sturgeon in row over donor cash

- By Michael Blackley SCOTTISH POLITICAL EDITOR

NICOLA Sturgeon was last night at the centre of a £3 million cronyism row over links between Government Ministers and SNP donors.

Property tycoon Alexander Adam and his firm, Springfiel­d Properties, have given the SNP and the proindepen­dence Yes campaign nearly £100,000 in the past three years.

Over the same period, the company has been given a Government loan of nearly £1 million. It has also been selected to take part in a lucrative constructi­on scheme where mortgages for new-build houses are guaranteed by Ministers.

The firm has been repeatedly

‘People will be extremely suspicious’

backed in public by Ministers – including Miss Sturgeon, who was pictured wearing its logo.

Meanwhile, the Government has also been forced to admit – despite previous denials – that a former Health Minister had a number of meetings with a party donor whose company later received NHS contracts worth more than £2 million.

The two separate revelation­s – weeks after a prospectiv­e SNP candidate was accused of brokering a £150,000 Government grant for her employer, the profitable private firm behind the T In The Park music festival – have led to accusation­s of cronyism in the Scottish Government.

Despite being a relatively small company, Elgin-based Springfiel­d has been extensivel­y promoted by Ministers, including Miss Sturgeon, Environmen­t Secretary Richard Lochhead, Transport Minister Derek Mackay and SNP Westminste­r leader Angus Robertson.

The catalogue of links between the housebuild­er and the Scottish Government has sparked concerns that Ministers are giving special treat- ment to SNP donors and independen­ce supporters.

A strict code of conduct forbids Ministers from promoting private companies. Last night, opposition politician­s said the SNP must ensure the rules are not being broken.

Scottish Tory enterprise spokesman Murdo Fraser said: ‘People will be extremely suspicious about such a vociferous independen­ce-supporting firm winning so much work and praise from an SNP Government.

‘There are numerous examples set out here and, given recent allegation­s of cronyism, the Scottish Government should move to explain this relationsh­ip immediatel­y.

‘The message appears to be if you support separation, you’ll receive fawning praise and senior Ministeria­l visits as a reward. You have to wonder if this pro-independen­ce company and Yes financial backer had been a vocal supporter of the UK, would it have received similar attention?’

Mr Adam, who has run Springfiel­d since 1998, was one of the first businessme­n to sign Yes Scotland’s ‘Yes declaratio­n’ and donated £25,000 to the pro-independen­ce group shortly after it launched in May 2012.

In December 2013, he donated a further £13,210 to pro-independen­ce group Business for Scotland, of which he was a prominent member.

His firm was also one of the SNP’s biggest backers in the run-up to this year’s General Election, giving the party £50,000 in March and donating £2,000 to the office of Nationalis­t MP Tasmina Ahmed-Sheikh and £5,000 to fellow Nationalis­t MP Michelle Thomson, former managing director of Business for Scotland.

Shortly after the first donation to Yes Scotland, Springfiel­d was given a £926,000 loan by the Scottish Government to ‘kick-start’ developmen­t on vacant land it owned in Edinburgh, where it developed 80 homes.

It was also named as one of 12 firms selected to take part in a new ‘mortgage indemnity scheme’, whereby home buyers can purchase new-build homes with loans guaranteed by the Scottish Government.

Earlier this year, Moray Council awarded three Government-funded affordable housing contracts to Springfiel­d – in an £8.8 million deal.

The firm was selected independen­tly by council officials, with the local authority saying yesterday that strict controls had been in place to ensure neither the Government nor the council’s elected representa­tives had played any part in the decisionma­king process.

Springfiel­d has also enjoyed a remarkable level of access to Government Ministers.

Only two weeks after the SNP accepted Springfiel­d’s £50,000 donation in March, Miss Sturgeon launched her business manifesto at its new Braehead developmen­t in Glasgow, where it is trying to sell homes for up to £254,000.

She had also been guest of honour at the site when the first resident moved in 12 months earlier, being photograph­ed alongside Mr Adam.

Mr Lochhead, Mr Mackay and Mr Robertson have all posted positive messages about the company on Twitter. In April, Mr Lochhead called it a ‘very generous local firm’.

The Scottish Ministeria­l Code of Conduct says Ministers should ‘avoid promoting an individual company’s products or services by associatio­n’.

Mr Adam has also had private meetings with ex-First Minister Alex Salmond and Mr Mackay, while Housing Minister Margaret Burgess visited his Whitehurst Grange developmen­t in Ayrshire and Mr Lochhead opened Springfiel­d’s Elgin office.

A senior business leader said: ‘I’m

not surprised Ministers wish to be seen with companies towards which there is a warm feeling, as opposed to those who do not support them.

‘But it would be wrong if Government contracts were being placed with companies because they support them, rather than on merit. The officials in the Civil Service should ensure that the rules on impartiali­ty are strictly followed.’

The Scottish Government has also been accused of cronyism after awarding £150,000 of public money to T In The Park, after meetings with Ministers were brokered by SNP high-flyer Jennifer Dempsie, who was working for festival promoter DF Concerts.

Scottish Labour public services spokesman Jackie Baillie said: ‘The SNP Government must make sure their dealings with party donors as a government are completely transparen­t and above board. The Scottish public have to have faith that government is operating honestly.’

Springfiel­d, which had pre-tax profits of £4.1 million in 2014, seems to have been praised by Ministers much more regularly than Scotland’s biggest housebuild­ers, such as Miller Homes, Cala and Barratt.

In 2012, Miller’s former managing director Keith Miller warned the referendum was causing uncertaint­y to the homebuildi­ng industry.

In contrast to Springfiel­d, Miller hasn’t been mentioned in a Scottish Government press release since 2012; nor has it been mentioned on the Twitter feeds of Miss Sturgeon, Mr Mackay or Mr Lochhead.

A Scottish Government spokesman said: ‘Springfiel­d Properties is one of numerous successful Scottish businesses that the Scottish Government supports and works with, regardless of whatever political views may be held by the staff of those companies.

‘It is entirely in keeping with the Ministeria­l Code For Ministers to encourage investment in economic activity for the benefit and prosperity of the people of Scotland.’

A Springfiel­d spokesman said: ‘Our chairman’s support for Scottish independen­ce is well known. He believes that the people who will do the best job of governing Scotland are the people of Scotland.

‘Springfiel­d is a successful housebuild­er, creating jobs and helping to build communitie­s across Scotland. As such, we have dealings with the Scottish Government. These are conducted entirely appropriat­ely and in line with relevant processes.’

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 ??  ?? COMPANY WOMAN: Nicola Sturgeon wearing Springfiel­d branded clothing at Braehead in April 2015
COMPANY WOMAN: Nicola Sturgeon wearing Springfiel­d branded clothing at Braehead in April 2015

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