18 June 2004
The auditor general for Scotland, Bob Black, has called for improvements in the management of Scottish Enterprise's business support service to achieve value for money from its £40m funding.
In a report published this week he said Scottish Enterprise and its local enterprise companies (LECs) have yet to implement a consistent approach to selecting companies for account management.
It is the second time that the Scottish economic development agency has been the subject of criticism by the auditor general. At the end of last year, Black identified failures over the appointment of outside consultants.
Between 2000 and 2003, Scottish Enterprise channelled £40m throughout the 12 LECs to assist almost 1,000 businesses. LECs select these companies for an account management service that provides advice on business planning, helps to deliver business plans and in some cases, gives financial assistance.
According to the findings, LECs provided no evidence that businesses given direct financial aid were meeting the criteria for receiving such assistance.
PFjun2004
