New Contract for Insolvency Services Commences

Following a full procurement exercise, six companies have been selected to provide contracted-out insolvency services for the Accountant in Bankruptcy Agency (AiB) from April 1, 2009. The successful companies are:

• KPMG;
• Invocas;
• Wylie and Bisset;
• Armstrong Watson;
• Hastings & Co;
• Miller McIntyre & Gellatly

AiB develops, supervises and administers personal bankruptcy across Scotland. It currently contracts out over 3000 cases per annum where The Accountant in Bankruptcy has been appointed trustee.

Prior to April, a relatively high number of Insolvency Practitioners each received a relatively low volume of cases. The new contract arrangements have reduced the number of organisations appointed by the Agency to undertake the administration of bankruptcy.

Gillian Thompson, The Accountant in Bankruptcy and Agency Chief Executive said:

"AiB has an important role to play in supporting the Scottish Government's economic recovery plan."

"The arrangements for engaging Insolvency Practitioners had been in place since 1993 and were no longer fit for the volume and types of bankruptcy Scotland is now experiencing."

"The exercise to tender for insolvency services was a key objective in the Agency's 2006-11 Business Strategy and has been a challenging process for all involved."

"I expect that the contract will release £543,000 each year in direct savings to the public purse, with additional internal efficiencies within AiB. "

NOTES FOR NEWS EDITORS

1. The placing of the contract for insolvency services where The Accountant in Bankruptcy is trustee is an operational matter for Accountant in Bankruptcy. Ministers are aware of progress in the exercise to modernise the current arrangements.

2. The new arrangement will ensure that those firms can benefit from economies of scale, releasing efficiencies, improving the quality of service to the Agency's' customers and delivering value for money for the public purse.

3. The exercise has been subject to EU procurement legislation.