The Scottish National Investment Bank (SNIB) is spending £175,000 on headhunters to help find its new chief executive.
The national development bank has signed a six-month executive search contract with London-based Spencer Stuart, which also covers the recruitment of a new chief investment officer.
The SNIB has called this good "value for money", but opposition parties questioned bidding process and use of taxpayers cash.
The search was necessitated by the sudden departure of maiden chief executive Eilidh Mactaggart in January, after just 18 months in post. She cited "personal reasons" for the exit, and under questioning in parliament, chairman Willie Watt explained no further.
The bank was previously criticised for paying her £117,500 - half her £235,000 salary - in leave of six months’ notice after she resigned.
Watt told the Economy and Fair Work Committee in March the SNIB planned to use “external search consultants” to find her replacement, with value for money "certainly be a very important criterion in that selection” of headhunters.
As for the lack of a competitive tender for the new chief executive, Watt stated: "The time limits for open procedure, restricted procedure, or competitive procedure with negotiation, cannot be complied with for these specific positions.
"We have a contract in place with a recruitment company for general recruitment purposes, but that does not extend to an executive search."
Watt continued: "Following a review of existing framework agreements and market testing of a number of executive search agencies, we undertook a ‘negotiated without prior publication’ procurement process, allowing the recruitment for both roles to commence in April."
In a separate statement, he explained: "It is vital that we reach a broad and diverse spectrum of high-quality candidates for these key leadership roles - specialist executive search agencies with relevant experience were identified and assessed based on our requirements.
"The assessment criteria considered cost alongside proven ability to successfully source high calibre candidates given the specialist nature of the skills the bank requires - overall, we believe the agency selected represents best value for money."
Spencer Stuart's contract runs from April to September, meaning the new boss may not be in post until next spring.
Chief financial officer Sarah Roughead moved into the leader's post on a temporary basis.
The SNIB, which went live in November 2020, uses public seed money to support green jobs as the country makes a just transition to a net zero economy. The Scottish Government has said it will provide £2bn of capital to invest over a decade.
Shadow Cabinet Secretary for Finance and the Economy Liz Smith told The Herald: "The problems with Scottish National Investment Bank appear never-ending, following the shock - and costly - departure of its CEO.
"These exorbitant fees paid to head-hunters to find her replacement are hard to justify, given such a high-profile and lucrative post ought to attract high-calibre candidates easily enough."
Former Scottish Liberal Democrat leader Willie Rennie said: "Leadership is obviously hugely important in a body which is set to oversee up to £2bn of taxpayers' money, especially in the wake of the resignation of Eilidh Mactaggart.
"Many previous Scottish Government economic initiatives have fallen apart at the seams, we cannot afford for this one to go the same way.
"Nevertheless, it would be better if such vast funds were being funnelled into the bank accounts of small businesses and innovative firms looking to grow, rather than the pockets of recruitment consultants."
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