GOVERNMENT ‘AWARE’ OF CASH CRISIS
Officials informed a Month before workers
Scottish Government officials were aware of the financial problems at Kaiam over a month before it sacked 300 people on Christmas Eve.
Scottish Enterprise were informed that the crisis hit Livingston plant which entered administration on December 24 was in financial trouble on November 16, and informed Government ministers a week later.
And answers have now been demanded as to why workers
were only made aware of the financial difficulties at a meeting on Christmas Eve where 312 staff were made redundant.
A Scottish Enterprise official told the Courier that they were first notified during a phone call with Kaiam on November 16 that the company was in financial difficulty.
At that point Kaiam management was pursuing a buyer for the company, as well as funding options to address cash flow issues.
Scottish Enterprise said that since being made aware of the issues they have been in regular dialogue with the company and helped it explore a range of options to try and find a sustainable future while also supporting it in an advisory capacity.
A Scottish Enterprise spokesperson said: “We have been in regular discussion with the company since finding out it was in financial difficulty and helped it explore a range of options, but unfortunately the situation couldn’t be turned around within the necessary timeframe.
“We remain committed to working with all stakeholders in order to find the best possible solution for employees and to secure a future for the site.”
Labour MSP for Lothian, Neil Findlay, has also called for a parliamentary enquiry into the dealing with Kaiam - which Scottish Enterprise awarded £850,000 in funding in 2014.
He said: “After being informed on November 22 that Kaiam was in serious difficulty, the Scottish Government appears to have done nothing, leaving 300 families with no wages or job at Christmas.
“It appears ministers knew that Kaiam was going to close but said nothing until it was too late.”
Scottish business minister Jamie Hepburn said he is “very concerned” about Kaiam going into administration and that Scottish Enterprise have been working closely with the firm but “a solution could not be found to turn the company’s situation around”.