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Financial Integrity, Uncategorized

Want to see what the Celtic SLA was supposed to deliver? Every year for 9 years.

Under FoI we were able to get a copy of the Lennoxtown Initiative Project Development Group paper titled ‘Service Level Agreement between Lennoxtown Initiative and Celtic PLC‘ dated December 2005.

This document was used as the basis to calculate the Payment Schedule contained in Part 2 of the SLA Agreement which was signed by the Lennoxtown Initiative on the 20th January 2006 and Celtic on 16 May 2006 according to Audit Scotland.

Timing is everything, in comedy too, so here, in December 2005, is the document that one month later, less the Christmas and New Year holidays, becomes the frozen Celtic SLA Agreement in January 2006. I say frozen, not because it’s winter, but because no further changes could be made to that January 2006 document when it was signed by one party, here Lennoxtown Initiative.

So what was the basis on which the SLA Payment Schedule was costed?

Quantification of Services

There is a table within the document laying out the quantification of services under 4 categories with No. of participants, No. of courses, No. of hours, Costs per session giving a Yearly Total which is then multiplied by 9 years to give a Contract Total for each category.

LI Project Development group table.PNG

Now Audit Scotland said there was a lack of evidence of what services were to be delivered in the SLA. It is true there were no Services Schedule created either in the SLA agreement or prior to any of the years the agreement ran.

Audit Scotland also said there was little evidence of what Services were delivered for the payments so they couldn’t say whether value for money was delivered or not.

BUT if you have the basis of the whole contract in your hands with the table above then you can ask questions such as, did:

  • 30 participants x 49 7 hr courses = 1,470 participants attend a Community Outreach course?
  • 60 participants x 4 courses = 240 participants attend a Summer School
  • external training facilities get used for 5 hrs x 40 weeks of the year
  • training personnel train kids for 7 hrs x 40 weeks of the year

get delivered for each of the NINE YEARS it operated?

It’s laughable. There were no services delivered until late 2008.

Did almost 1,500 people go through a Community Outreach program every year for nine years? Lennoxtown’s population is 4,000 according to VisitScotland. So everyone went through the program 3 times? They must have been drawing their curtains when they came round the houses the third time. Not so much Outreach but Overreach.

Their external training facilities were not used for 40 weeks of the year. So the kids were out in the middle of winter at night? Kids were trained 40 weeks out of the year?

Evidence from minutes, LI & EDC, are that in late 2008 2 boys clubs started using facilities on a Wednesday night which continued in later years. There were Summer tournaments in June 2011/12/13/14. This is verified by this document:

Evidence note of meetings between Celtic and Audit Scotland

Lennoxtown Initiative got a Discount from Celtic

Assessment value for money 1

Assessment value for money 2

Through tough negotiations the Lennoxtown Initiative got a 54% discount. Bargain of the century.

Three Payment Stages laid out in LI Project Development group doc

3 Payments Stages 1

3 Payment stages 2

Stage one: Upfront Payments. Look at all the detail in this stage compare to the 2 others. Such a pity we destroyed the set-up cost argument in this post since each party to the SLA had to pay their own costs. Why was it only Celtic that had set-up costs of £329,001 again? 

Then Stage Two, payment break. Was that when no payment was made for year ending 31 March 2008? 

Then Stage Three, payment in arrears.

Sorry I can’t post any more. I can’t stop laughing.

It sounds like the Monty Python’s Inquisition sketch: ‘They’ll be 3 Stages. Stage 1 Upfront payments for nothing. No they’ll be 2 stages, Stage 1 a Payment Break. Sorry 1 Stage of Payment in Arrears.’ ‘Can we go out and rewrite this SLA agreement and come back in?’ ‘No’. 

Audit Scotland, had the document above and didn’t see that the quantification of services doesn’t change no matter the price. So they had the basis to ask ‘Were these services delivered for each of the 9 years?’. No they just issued a ‘Nothing to see here’ report.

Lennoxtown Initiative thought they were getting a bargain discount of 54%. 

SLA set-up, well there was one and it was Lennoxtown Initiative that was set-up.

The only stage was when Celtic bailed up and robbed The Lennoxtown Initiative stage.

Hi Ho Silver Away!!

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2 thoughts on “Want to see what the Celtic SLA was supposed to deliver? Every year for 9 years.


    Posted by AB6 | February 13, 2016, 12:40 pm
  2. 1. All LI directors were involved in this deal and in my opinion all had shares or connections to CFC if that doesnt stink of conflicts of interest what does?
    2. How can people think this was a great deal for the residents of Lennoxtown?
    3. I feel there may be employees of EDC who were involved in this who are shareholders of CFC too.
    4. Its all going to come out sooner or later and so will the clinton connection to CFC through dodgy Haitian deals
    5. The truth will come out and hopefully the community will one day benefit

    Posted by akkie | April 4, 2016, 3:30 pm

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