Accounting firm KPMG have launched a probe into the financial implications of the “debacle” surrounding the V&A at Dundee project.
The international financial firm will scrutinise the accounts behind the building project, amid fears city services could be hit if the project goes further awry.
The probe came to light after opposition councillors questioned why KPMG, who are contracted to analyse the council’s accounts, had failed to include any risk assessment on the £80 million V&A project in their latest report.
Labour councillor Richard McCready said: “I was surprised reading the KPMG report that I could not find a single reference to the V&A project.
“There were references to all sorts of external bodies from the lord provost’s charities to the common good fund to Leisure & Culture Dundee but no mention of the V&A or Design Dundee Limited (the group responsible for delivering the project).
“I asked if the V&A would form part of their work and I was told by the senior auditor that it was ‘an obvious area of focus’.”
Dundee City Council has insisted that John McClelland’s investigation into the spiralling costs of the project will ensure lessons are learned.
But Mr McCready believes that the announcement by KPMG will shed additional light on the situation.
He said: “I was pleased to hear (that KPMG would investigate) as it is important that we get to the bottom of how the over-budget cost of the V&A could be hidden from councillors for at least nine months.
“The council knew that it was over budget in April 2014 but chose not to tell councillors or the public until January 2015.
“The most puzzling aspect of the whole V&A project is that there is clear cross-party support for it, so why were opposition councillors given answers which were at best wrong?
“Whilst it may be a technicality it appears with every passing day that the decision made on September 8 five months after budget issues were shared with the Scottish Government but four months before they were shared with opposition councillors or the people of Dundee may not have been competent due to the financial information being at best wrong.
“I look forward to the various reports which will come forward in the hope of getting some clarity and ensuring that there can never be a repetition of this debacle.”
A spokesman for Dundee City Council said: “A thorough and rigorous review of the background to the situation by independent procurement expert John McClelland has been commissioned on behalf of the council so that lessons may be learned for future projects.
“The results of this review will be brought to the council’s policy and resources as soon as practically possible.”
KPMG declined to comment on the development.
NO PLACE FOR SECRECY
It’s time for all the cards to be laid on the table with regards to Dundee’s V&A museum, writes Kieran Andrews, political editor.
There’s no getting away from the massive damage inflicted on the project’s credibility by spiralling budgets and secret meetings.
Unfortunately this has overshadowed the transformation taking place within the city, which has the V&A very much at its heart.
That’s why there is a need for complete transparency from all involved.
Errors are a lot easier to forgive if there’s not a perception that the people making them have tried to pull the wool over your eyes.
Closed-door chats and delays releasing information give people reason for suspicion, rightly or wrongly.
Actually, I don’t care that this project is over budget, nor would I be particularly fussed if the cost increased again.
This museum, and the accompanying regeneration of the waterfront, will have such a positive impact on the area that it is worth it.
The obvious beneficiary is Dundee itself but tourists will also be wowed by the beauty which surrounds them just a few miles away in Angus, Perthshire and North East Fife once they have travelled to the city.
We should all be behind the museum’s arrival by the Tay, with the extra footfall and investment it will bring.
But it’s up to our politicians and those in charge of the project to treat people with respect and tell us what’s been going on.
After all this secrecy, it’s the least we deserve.