Publication - FOI/EIR release

Risk assessments used prior to loans granted to third parties: FOI release

Published: 16 Nov 2018

Information request and response under the Freedom of Information (Scotland) Act 2002.

Published:
16 Nov 2018
Risk assessments used prior to loans granted to third parties: FOI release
FOI reference: FOI/18/02990  
Date received: 18 October 2018 
Date responded: 15 November 2018
 
Information requested
 
With reference to the following loans granted to third parties, please provide a copy of the risk assessments used by Scottish Ministers prior to engaging in the transactions to evaluate and mitigate (1) bribery / corruption risks and (2) money-laundering risks:

(A) Loans to Burntisland Fabrications Limited (granted during 2017 & 2018)
(B) Loans to Ferguson Marine Engineering Limited (granted during 2017 & 2018)
(C) Loan 8: £9.7 million, noted in annex 1 to Scottish Government’s Review response to FOI/18/02239.
 
Response
 
Please find attached a response to some of the information you requested.
 
Lending by Scottish Ministers is governed by a series of controls that ensure the public purse is protected. This includes appropriate due diligence supported by independent third-party verification on matters commercial and legal.

While our aim is to provide information whenever possible, as regards the loans listed under (A) and (B) of the request, we are unable to provide the information you have requested because exemptions under – section 30(c) (effective conduct of public affairs) and section 33(1)(b) (commercial interests) of FOISA apply to that information.

For loan (C), the information you have requested falls under exemption section 17 of FOISA as we do not hold this information. This loan is an investment made by the fund manager Amber. They act independently and Ministers are not involved in the decision to invest. We therefore do not retain this information within the Scottish Government.
 
Reasons for not providing information
 
Exemptions apply, subject to the public interest test.

An exemption under section 33 (1(b)) of FOISA applies to some of the information you have requested because it relates to commercial information that may prejudice the company.

This exemption is subject to the 'public interest test'. Therefore, taking account of all the circumstances of this case, we have considered if the public interest in disclosing the information outweighs the public interest in applying the exemption. We have found that, on balance, the public interest lies in favour of upholding the exemption.

An exemption under section 30(c) of FOISA applies to some of the information you have requested because it is likely to harm stakeholder trust in the Scottish Government.

This exemption is subject to the 'public interest test'. Therefore, taking account of all the circumstances of this case, we have considered if the public interest in disclosing the information outweighs the public interest in applying the exemption. We have found that, on balance, the public interest lies in favour of upholding the exemption.
 
About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses

Contact

Please quote the FOI reference
Central Enquiry Unit 
Email: ceu@gov.scot
Phone: 0300 244 4000

 
The Scottish Government 
St Andrew's House 
Regent Road 
Edinburgh 
EH1 3DG