Council in secret pothole repair company payout over £31m court challenge
One of Scotland's biggest local authorities has settled a £31million court battle after being forced to make a massive payout to a pothole repair company.
North Lanarkshire Council chiefs are refusing to say how much they paid to construction firm Amey after it took legal action over a botched contract.
The settlement could run up to tens of millions at a time when the council is facing a budget deficit of £13.4million this year.
Councillors have demanded the local authority reveal how much public cash has been lost as a result of the scandal.
Gerry Brennan, Progressive Change North Lanarkshire councillor for Motherwell North, said: 'The people of North Lanarkshire need to know how much has been paid as a result of incompetence in managing this contract.
'The council has a budget deficit over the next three years of £62million. We estimate the settlement figure for this case to be around £31million given what the firm wanted in compensation in the original court case.
'As a local authority we simply do not have that kind of money to spend. It should be spent on improving local services, making the roads better and improving our schools. It should not be lining the pockets of corporations merely because a contract was mishandled by this administration and council officials.'
Amey lodged a £45million claim against the council in the Court of Session after it awarded a 12-year road maintenance contract to a German firm last summer.
Court documents show the amount was later revised to £31million. Amey argued the offer put forward by Hochtief PPP Solutions was 'abnormally low' and should have been excluded from the contest.
Lawyers also accused the council of 'failing to act transparently' by not listening to Amey's concerns about how the contract was awarded.
The case has now settled out of court.
Brennan said: 'We will not stop pushing for transparency and demand the council make the figures public.'
A spokeswoman for North Lanarkshire Council said: 'The case has formally concluded and a settlement agreed.'
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