Politicians have called for public bodies to consider boycotting RMJM, the architectural practice that has appointed the disgraced banker Sir Fred Goodwin as a senior adviser.
They have accused the practice of showing "bad judgement" by employing the former Royal Bank of Scotland chief executive as an international consultant, and urged public bodies to think "long and hard" before spending taxpayers' money with it.
Goodwin, dubbed "Fred the Shred" for his ruthless business practices, was forced to quit RBS 15 months ago, after bringing one of the world's biggest banks to the brink of collapse.
RBS, which ran up debts of £28 billion under the Paisley-born banker's leadership, was saved only after being bailed out by the taxpayer.
Goodwin, who earned £4.2m a year, fled to France after it emerged that he had left with a £703,000-a-year pension. He agreed to reduce it to £342,500.
Advertisement
"I would have thought the last person the public sector would want to do business with is Fred Goodwin, given he was basically responsible for one of the biggest banking crashes in history," said Michael Connarty, Labour MP for Linlithgow and East Falkirk.
"People in the public sector should think long and hard before awarding further contracts to this company if its judgment is so bad that it is taking on one of the most despised people in this country."
Sandra White, the nationalist MSP for Glasgow, said: "People should think twice and look to their consciences before awarding public contracts to companies that don't appear to look to theirs when employing people who don't appear to have certain ethics."
RMJM, which is designing the Commonwealth Games athletes' village in Glasgow, was responsible for the Holyrood building, which was completed three years late and 10 times over budget.
The practice's chief executive of North American operations is Sir Fraser Morrison, a friend of Goodwin's and a former colleague from when they both worked at the Clydesdale Bank.
Advertisement
Morrison's son, Peter, is overall chief executive of the Scottish-based architectural practice. Public sector contracts have included the Falkirk Wheel and schools in Glasgow, Midlothian and West Lothian.
While RMJM will not receive public money for the Commonwealth Games development, it will benefit from the eventual sale of property in the athletes' village, built on land donated by Glasgow city council.
Goodwin, 51, who took up the post before Christmas, will be paid a reported £100,000-a-year including a performance-related bonus. He will not receive a pension.
Some RMJM staff were stunned by the banker's appointment at a firm which has slashed 1,000 jobs and imposed a 10% pay cut for all staff over the past year.
"We thought it was a joke," said one. "We have all taken a pay cut this year and a lot of our colleagues lost their jobs."
Advertisement
A source at the firm said of Goodwin: "He has a unique skill set. He's got fantastic international experience and that ... really appealed to us."
The source added: "Public sector work is awarded on a tender. If we do win contracts it is because we have shown we are the best value for money."
Goodwin's spokesman said the former banker was unlikely to seek additional employment elsewhere.
RMJM declined to comment.