The North Lanarkshire Council workers were slaughtered a couple of years ago because the
DLO ran up a pounds 4.8million deficit.
The council's
DLO will be banned from carrying out capital works, and maintenance contracts will be passed to the private sector.
A spokesman for the National Audit Office said: "We are investigating the processes undergone by the
DLO in deciding to purchase property in Bristol." The Government was already under fire for "going through the motions" in a consultation over a new merged ambulance trust.
When the
DLO scandal broke, it was revealed that one [pound]10,600-a-year plumber took home earnings of [pound]54,100.
The
DLO suffered from 'poor financial governance, weak benefits management, poor communications, risks materialising that need not have done so had they been identified at the outset and managed appropriately and failure to establish an effective programme management organisation', said Sir John.
And insiders say the council will appeal to Donald Dewar in his new First Minister role to save the
DLO.
Major General Malcolm Wood, director general of the
DLO, said: 'We're pleased to award the contract to Exel.
Harry O'Neill, of the TGWU, said: "If this council have problems with their
DLO, we should seek to solve them.
The
DLO was panned by Scots Secretary Donald Dewar last year after a pounds 2.5 million overspend.
Mr McLeish added: "On the basis of this unaudited information, none of these failures is on the scale of the
DLO deficits of North Lanarkshire and East Ayrshire.
The decision comes just days after the council revealed it is negotiating a pounds 76 million deal for two private companies to take over work of the
DLO, which has built up pounds 22 million in losses during the past two years.