A major probe has been launched into Falkirk Council contracts worth millions of pounds.
The internal investigation centres on a deal to supply and fit tyres to local authority vehicles.
Bonnybridge firm WH Tyres had the contract – worth over £1.5 million – for the last five years and had successfully retendered for another five.
However, alarm bells began ringing when the award was challenged by an unsuccessful bidder, who claimed the local company’s bid was “not sustainable” and tenders were not being compared on a like-for-like basis.
At a behind-closed-doors meeting of the council’s emergency committee, members heard an initial review showed that in WH Tyres’ tender a “significant” number of prices appeared abnormally low compared to the next most competitive bid.
But it also revealed that the tyres supplied “differed significantly” from those the company had priced for in its original tender.
Questions are now being asked about contract monitoring.
Councillors agreed to reject the new tender submitted by WH Tyres – although they were warned this could be legally challenged by the firm.
Last night (Wednesday), a council spokesman said: “We are currently conducting investigations into the circumstances surrounding this contract, in order to address any issues that arise.”
He refused to confirm if any staff had been suspended.
WH Tyres declined The Falkirk Herald’s offer to comment on the matter.