The CEO of a laser technology firm, which received £40 million in taxpayer funding, has seen a significant increase in his salary prior to the company’s administration. Dr Graeme Malcolm, founder and CEO of M Squared, was awarded £37.5 million from the Scottish National Investment Bank and an additional £2.9 million from Scottish Enterprise.
Based in Glasgow, M Squared specialised in providing advanced laser and quantum computing instruments globally. However, the company collapsed in August of last year, leaving debts exceeding £60 million to creditors, largely attributed to a steep decline in sales exacerbated by the pandemic and the geopolitical situation following Russia’s invasion of Ukraine.
Following the company’s administration, it has been reported that Dr Malcolm’s remuneration surged from £362,500 in 2021 to £845,654 in 2022, reaching £914,539 in 2023. This development has provoked strong reactions from opposition politicians who are calling for a thorough investigation into the circumstances surrounding the firm’s downfall.
Scottish Conservative shadow business secretary Murdo Fraser expressed his concerns, stating, “When significant amounts of money have been lost in an investment, the Scottish National Investment Bank, as a public body accountable to SNP ministers, should ensure complete transparency regarding the issues at hand. The public deserves a comprehensive explanation of the events leading to this situation and reassurance that no one has improperly benefited at the expense of taxpayers.”
Similarly, Economy spokesperson Jamie Greene MSP remarked, “If we are to maintain a National Investment Bank, it is essential to recognise that not every initiative will succeed. However, the sizeable director’s fees associated with a collapsed project, coupled with the same individual returning to oversee its assets, may seem inequitable to many. Our focus should be on supporting Scottish entrepreneurs in their growth journeys, rather than rewarding failure. The SNP has a history of mishandling taxpayer funds while simultaneously cutting public services and claiming financial constraints.”
Scottish Labour Economy spokesperson Daniel Johnson also highlighted the gravity of the situation, stating, “With substantial taxpayer money at stake, it is imperative that we maintain transparency regarding this business. The Scottish National Investment Bank has the potential to foster growth and opportunities across the country, and the SNP must ensure it is fulfilling this role effectively.”
Recent developments indicate that the assets of M Squared have been acquired out of administration by a new company, Novacene Photonics, of which Dr Malcolm is also a director. Documentation from Companies House reveals that he was appointed as a director of this Glasgow-based entity on November 4.
The administrators of M Squared Lasers noted that the sale of intellectual property and other assets to Novacene Photonics followed an extensive marketing exercise following the appointment of the administrators.
The Sunday Mail reached out to Dr Malcolm via company email and through the administrators for comment but received no response. A spokesperson for Novacene Photonics expressed enthusiasm, stating, “Novacene Photonics looks forward to building upon M Squared’s pioneering legacy.” Dr Malcolm, who was honoured with an OBE in 2015, studied laser technology at Strathclyde University and has established several companies throughout his career.