A SCOTTISH Labour politician resigned during a sleaze probe which found rules had been broken when her son was awarded a share in a £4 million contract award, the Sunday National can reveal.
Elaine McDougall, a Labour councillor in Glasgow, quit her role on the board of a housing association which awarded work to her son Gary’s tiling firm for repairs.
Gary McDougall was awarded a contract in 2017 to carry out work for Milnbank Housing Association (MHA) while his mother Elaine sat on the board.
An investigation was launched by the Scottish Housing Regulator in 2020 and the Glasgow councillor - who represents the east end ward Dennistoun - quit her position on the association’s board the following year.
The Scottish Housing Regulator, in a letter sent to MHA and leaked to the Sunday National, said there was “no evidence” McDougall had declared her links with her son’s company – which was at the time registered to her address.
It also said there was no proof the “conflict of interest was managed”.
Elaine McDougall has insisted she did declare the interest and played no role in the award of contracts.
Gary McDougall’s firm Dennistoun Ceramics was awarded two contracts, one for tiling and another for plastering work to maintain MHA’s properties.
The contracts were awarded in a framework with a total worth of £4m, but it was not stated how much Dennistoun Ceramics' contracts were worth individually.
But her SNP rivals on Glasgow City Council said she had questions to answer after stepping down during the investigation.
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A spokesperson for the party group said: “These are extremely serious allegations involving very senior figures in Glasgow Labour.
“Councillor McDougall must fully explain how a firm connected to her immediate family benefitted from a contract awarded by an organisation she was representing the council on.
“And why, following an investigation, she stepped down.
“Members of the public would be forgiven for thinking that serious concerns around the conduct of an influential Labour councillor have been allowed to be swept under the carpet.
“Tenants of Milnbank Housing Association, Dennistoun residents and the wider Glasgow public deserve to know what went on here.”
A Glasgow Labour spokesperson said: “Councillor McDougall has been clear that she followed the correct procedures - this included declaring an interest as and when required.
“At no time was Councillor McDougall involved in awarding of contracts for repairs.
“Glasgow City Council were notified when she retired from the position as the council nominee.
“These politically motivated smears should shame the SNP in Glasgow”
There is other evidence the housing association has close links with the local Labour Party. Its CEO is the ex-Scottish Labour MSP Paul Martin, the son of disgraced former House of Commons speaker Michael Martin (below).
The elder Martin was exposed as having racked up enormous personal expenses, including billing the taxpayer for the £1.7m refurbishment of his official residence in the Palace of Westminster.
He also spent £1400 on chauffeur-driven cars to take him to Celtic Park and his local Jobcentre while spending public money on libel lawyers Carter-Ruck to combat negative stories about him in the press.
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Ann Jenkins serves as MHA’s vice chair and is a Glasgow Labour councillor representing the East Centre ward.
The Scottish Housing Regulator’s report also found MHA changed its rules during the investigation to allow it to “appoint contractors who are closely related to management committee members”.
MHA did not respond to requests for comment.
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