From the Permanent Secretary Depetmentier Paul Priestly Be Regional » Ge Development ‘omc pk Cllr Mervyn Storey MLA Room 704 13a High Street ere need BALLYMONEY ——— berasr Co Antrim Br? Tolepone: (028) 9058 1175 mae Foca {028} 90 84 1120 Ema: priest ara gov uk — ‘Your reference: Ourreterence: PSORD 318/08 11 August 2006 Dear Mervyn RATHLIN ISLAND FERRY You wrote to me on 7 August, asking for information on the investigation of issues relating to the Rathlin Island Ferry tencer process. The Department has received correspondence from the Norther Ireland Audit Office and others, over recent weeks, setting out concerns about the Rathlin island Ferry contract — including a series of allegations and complaints against members of staff in the Department. The Department therefore decided that a full investigation needed to be undertaken to deal with all aspects of the allegations and complaints that have been made about the Department's involvement in the Rathlin Island Ferry contrac With the agreement of the Northern Ireland Audit Office, a three-stranded investigation has been put in place: Internal Audit Investigation First, DRD Internal Audit is already engaged in an investigation into many of the original allegations and complaints. This work is being led by an experienced auditor and will continue to a conclusion and a report. Its findings will also feed into the other two strands of the investigation Procurement Process Investigation ‘Second, there has been a series of allegations and complaints raised about the Procurement process which | have concluded need to be investigated by a source with the relevant professional procurement expertise and experience. | have asked Steve Rowsell - an independent procurement consultant (and former Director of Procurement of the Highways Agency in GB) — to lead this part of the investigation. He will be supported by a team from the Central Procurement Division with no previous involvement in the Rathlin island Ferry contract, but with experience in O an FoNN oe Forbartha Réigitnai MANWYSTRIE FURNICS procurement processes and best practice, as well as in carrying out such investigations. The terms of reference for this part of the investigation are as follows: “in light of the allegations and complaints received by the NIAO and the Department for Regional Development, to investigate all aspects of the procurement process for the Rathlin Island Ferry contract and provide assurance that: 8. ail tenderers received equal treatment and there was no discrimination; b. there was transparency about the decision-making process; and © there was no manifest error in the award of the contract.” Investigation of Complaints against DRD Staff Third, there has been a series of allegations and complaints about two members of staff from the Department for Regional Development. They cover allegations about their relationship with one of the tenderers and the part that they played in the procurement process, as well as complaints about their treatment of staff working for the ferry service operator and their handling of ‘whistleblowers’. | believe that these allegations and complaints also need to be investigated by a source independent of the Department and with no previous involvement in the Rathlin sland Ferry contract, but with an understanding of the NICS as well as of the handling and Conduct of investigations into complaints against NICS staff. | have asked a recently retired former senior civil servant to lead this part of the investigation. The terms of reference for this part of the investigation are as follows: “To investigate the allegations and complaints received by the NIAO and the Department for Regional Development about the involvement of two members of staff in DRD in the Rathlin island Ferry contract - including: allegations about their relationship with one of the tenderers; allegations about the part that they played in the procurement process; complaints about their treatment of staff working for the ferry service operator; complaints about their handling of whistleblowers’; and complaints that the disclosure of information to third parties may nave breached the Data Protection Act and other employment terms.” oro ga | have set a target of having all three strands of the investigation completed by end- September.| believe that proceeding in this way provides a basis for dealing comprehensively with the full range of allegations and complaints that the NIAO and the Department have received about the Rathlin [stand Ferry contract. It is my intention to pass any further allegations and complaints received by the Department about this matter to those leading the three strands of the investigation. | hope that this gives you the information that you need. Your tinue, Pond Bo PAUL PRIESTLY