Bosses at the struggling Ferguson Marine shipyard have been slammed after awarding themselves cash bonuses without Scottish Government approval.
The business in Port Glasgow was nationalised by SNP ministers in 2019 as it struggled to complete an order for two new car ferries for Caledonian MacBrayne.
The CalMac vessels remain unfinished and it remains unclear when they will enter service or how much the final bill will be.
Audit Scotland today issued a damning update on the state of Ferguson Marine and warned it may not have a viable future.
The body, which scrutinises public spending, said £87,000 of performance bonus payments were paid to senior Ferguson Marine managers during 2021/22.
Stephen Boyle, the Auditor General, said it was "not clear" how their performance were assessed and that appropriate frameworks and governance were not in place.
"It is unacceptable that performance bonuses were awarded to senior managers at the shipyard, without proper governance for such payments," he said.
"The Scottish Government needs to make sure its rules over pay are followed by this public body."
Boyle added it was also unclear whether Ferguson Marine had a viable future as a business.
"It is deeply concerning that the costs to complete these ferries have continued to escalate, whilst the island communities these boats are meant to serve remain significantly impacted," he continued.
"Despite substantial sums of public money being invested, there is still no certainty over how much the ferries will cost, when they will be ready or whether the shipyard has a viable future."
Fergusons is the last remaining builder of commercial ships on the Clyde.
It specialised in car ferries but despite a buyout in 2014 led by billionaire industrialist Jim McColl it struggled to handle a CalMac order awarded the following year.
Questions have since been raised on why SNP ministers approved the contract being given to Fergusons despite concerns being raised at the time over its suitability.
Neil Bibby, Scottish Labour transport spokesman, said: "This damning report underlines what mess the SNP has made of these ferry contracts.
"Islanders, taxpayers and yard workers are all being failed at every turn, and we still can’t get straight answers on what went so badly wrong.
"While the public purse picks up the tab for spiralling costs, senior management are being handed fat cat bonuses with no scrutiny.
"The SNP need to get a grip of this shambles, deliver these lifeline ferries and secure a future for this iconic shipyard."
A Scottish Government spokesman said ministers remained "committed" to helping the shipyard "secure a long term sustainable future".
They added: "We expect the company to provide a strategic business plan to Ministers in due course for comment and agreement.
"It is a concern that FMPG did not inform or seek approval from the Scottish Government before bonus payments were paid to senior managers. This should be done as a matter of good governance.
"However, the new senior management team is committed to consulting with the Scottish Government as required on this issue in the future.
"Significant progress has been made on the governance structure at the shipyard over the last 12 months.
"We deeply regret that work on the two ferries is taking longer than it should. The Scottish Government remains focused on supporting our island communities that rely on this type of vessel.”
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