Friday, 11 April 2014


Mr E Cairns

72 Hillhouse Street


11 April 2014

Mr Iain Scott

Chief Financial Officer and Company Secretary

Scottish Enterprise

Atrium Court

50 Waterloo Street


Dear Mr Scott,


In his letter dated 5 November 2013 Mr Bob Doris MSP referred to the following statements issued by Scottish Enterprise in a letter to Ms Patricia Ferguson MSP dated 30 May 2012:

1. ‘the accounting requirements for Local Enterprise Companies were clarified.’

2. ‘no evidence of fraud or wrongdoing was found’

In the context of this new information Mr Doris asked several pertinent questions in the public interest, including why was it necessary to clarify the requirements and to add £187,069 to the accounts retrospectively if no wrongdoing had occurred?

In his letter to you dated 7 March 2014 Mr Doris asked how the complaints process had dealt with the questions raised in his previous letter.

In your responses you made no attempt to answer these questions.

Most importantly, you omitted to mention that documentary evidence available to you did indeed confirm that there was a note in the cash book recording an instruction not to enter into the accounts the £187,069 that had been received in the bank by electronic transfer on 25 June 1993, that the finance staff who routinely made such entries acted upon that instruction for almost two months, and that the entry was made retrospectively on 18 August 1993 only after I had put my concerns into writing.

The documentary evidence corroborates the contents of my email dated 17 August 1993 and contradicts the assertion by Scottish Enterprise issued on 30 May 2012 that no wrongdoing was found.

Is it wrong to instruct workers in a public agency to falsify a bank account? Of course it is.

You asserted that Scottish Enterprise considers the matter closed. However, where new evidence comes to light a reasonable and informed third party would conclude that it is fundamentally dishonest and misleading to refuse to have any regard for it.

You appear to be persisting in seriously misrepresenting this case to the point of bringing your integrity into question and discrediting the profession.

In the circumstances I want to add these points to my complaint against you. You ought to have carefully reviewed the evidence in the light of the new information provided by Scottish Enterprise in 2012.

I will also include these points in any complaint about you to ICAS.

The ICAS Code of Ethics contains the following relevant points:

100.5 A professional accountant shall comply with the following fundamental principles:

(e) Professional Behaviour

To comply with relevant laws and regulations and avoid any action that discredits the profession.

110.2 A professional accountant shall not knowingly be associated with reports, returns, communications or other information where the professional accountant believes that the information:

(a) Contains a materially false or misleading statement;

(b) Contains statements or information furnished recklessly; or

(c) Omits or obscures information required to be included where such omission or obscurity would be misleading.

Yours sincerely,

Eddie Cairns.

1 comment:

Nick White said...

I believe you. I probably can't help, but if it is any consolation I do believe your whole story.