'Contracts for pals' crisis deepens at Scottish council as two senior figures step aside
South Ayrshire Council faces urgent calls for an inquiry over alleged misconduct by local chiefs following a Sunday Mail investigation.
Two senior figures at a local authority have stepped aside amid a widening police probe into contracts for 'pals' allegations.
South Ayrshire Council's conservative leader Martin Dowey resigned in April after the Sunday Mail published a recording in which he appeared to offer to help a company with lucrative work.
We can reveal police are now assessing a further recording of the local authority's CEO Mike Newall, who also stepped aside after we received it.
A businessman who claims he is owed more than £400,000 has also now written to the council demanding an inquiry into the scandal is launched immediately.
David O'Neil's letter states: 'I am writing to formally raise serious allegations involving misconduct, abuse of position and potential fraud.'
In the latest recording to emerge CEO Newall appears to tells a company boss he wants to hand him key work.
Newall is heard stating he wants to 'weave a way through all the bureaucracy and procurement stuff so we can make you the preferred bidder so as you get the work'.
He added: 'What I have to deal with is a head of legal services who is very risk averse.
'She says, 'Oh you can't do this and you can't do that.' It's can't, can't, can't.' Newall added: 'I want this to happen.'
The audio was recorded at the council's HQ around a year ago and related to a project to redevelop a shopping centre in Ayr town centre.
Newall, 63, who earns £135,000 a year, took a leave of absence from his role as CEO citing family reasons days after the Sunday Mail asked for the council to comment on the recording.
Newall can also be heard telling the businessman: 'I'm being candid with you here…we have to be careful what we're saying.
'The bottom line is you're the preferred person to do this but we haven't got any agreements or council approval.'
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The leaked tape comes two months after the council's former Conservative leader, Martin Dowey, stood down amid another recording row revealed by the Sunday Mail.
Dowey has been reported to police but has insisted no wrongdoing took place and vowed to clear his name. Police confirmed they had 'received additional correspondence which is being assessed.'
In a tape, Dowey calls officers at his local authority 'f****** useless' and boasts: 'All the top ones I can sack.'
And he appears to tell the businessman he can help him win work including a deal to demolish Ayr's Station Hotel, which was devastated by fire in 2023.
In the recording of a meeting at the council's offices that year Dowey, a former police officer, states: 'You will be told the quotes are coming out. You put in your price, we will give you a guestimate of what is happening.
'If you are in the last three you will get the quote. You will get it. That's easy, that's not a problem. The problem arises if you are not in the final three, I can't do anything about that. It's up to us getting a proper price from you.'
In the wake of our story deputy leader of South Ayrshire Council Bob Pollock was removed in May following an angry meeting.
Provost Iain Campbell resigned after admitting he was 'totally disgusted' by the behaviour in the chamber.
'An investigation into the awarding of council contracts is already under way and some of these allegations form part of that investigation.'
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