BiFab: intervention analysis

Purpose of this Report

EY were commissioned by SG to undertake an evaluation of the BiFab intervention following a recent Audit Scotland recommendation that SG seek to learn lessons from its experience of recent financial interventions in private companies, in line with Scottish Public Finance Manual (SPFM) guidance.

The purpose of our report is to consider the lessons learned as a result of SG’s intervention in BiFab, with the aim of informing future interventions. Our evaluation is a backward looking analysis, performed in the period from January 2023 to June 2023, over five years on from the initial SG intervention. Our report makes comparisons to best practice, however we acknowledge that the significant time pressures, impact of COVID-19, challenging economic conditions and level of public interest resulted in resource constraints which may have prevented SG from following best practice in some areas. We also recognise that SG’s intervention options were subject to State Aid and SPFM guidance.

Our findings are limited to a point in time. We are aware that SG has implemented operational and procedural changes in the period since the intervention which address many of the findings from our review.

Limitations

Our analysis has been limited in time and scope. Information reviewed has been limited to Ministerial briefing papers, advisor reports and discussions with SG. Our report does not reperform Market Economy Investor Principle (MEIP) or Market Economy Operator Principles (MEOP) analysis or comment on compliance.