A series of basic errors exacerbated the financial risks of a costly TT sponsorship deal, a Public Accounts Committee report concludes.

And the damning report, to be presented to next week’s Tynwald sitting, finds that Signature contract was not unique but just one of a number of TT-related contracts mishandled by the former Department of Tourism and Leisure.

The lucrative deal with Signature, which aimed at transforming the TT into a more viable commercial prospect, saw the company paid a basic £70,000 a year, plus £15,000 in expenses and 22.5 per cent in commission.

It left government with a £750,000 liability – on top of the £900,000 the company had already been paid – as it couldn’t afford to break the contract.

The PAC report concludes that while the Signature Sponsorship deal has made a ‘significant contribution’ to the commercialisation of the TT. it failed to generate any increase in net revenue.

The report says that by the time the shortcomings of the contract were discovered, the damage was done.

It states: ‘We conclude the financial risk associated with the Signature contract was exacerbated by a series of basic errors in the processing of fees and expenses by the DTL.

‘The Signature contract was not unique but one of a number of TT-related contracts mishandled by the DTL.’

The PAC inquiry uncovered evidence of a ‘fundamental breakdown’ in the relationship between the DTL’s former chief executive Carol Glover and director of tourism Geoff Le Page which it said directly affected the management and control of the project.

The report concludes that Mrs Glover – ‘although well intentioned’ – did not follow proper procedures in appointing Signature as TT marketing consultants.

As a result of her ‘single-minded determination’ to ensure the TT’s success, processes and procedures were over-ridden, there was a lack of control over the management of this and possibly other contracts – and communication broke down within the department and with external suppliers.

‘We remain unconvinced there were no other companies or individuals with the skills and expertise required to develop the TT brand at a more competitive price,’ it adds.

Giving evidence to the committee, former DTL Minister Adrian Earnshaw, said he had been in post for three months when he discovered the Signature contract had not been signed.

Subsequently the contract was split, with him signing one covering the period from May 2007 and Mrs Glover signing the one covering the period before.

That first contract, running from January 2006 to the end of April 2007. has never been found.

And the PAC inquiry found that between January 2006, when the agreement was announced to when the contract was finally signed there were 50 different versions of the contract and at least 150 changes made.


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