QUESTIONS have been raised about a "perceived conflict of interest" after £618,000 of prize money in a competition for entrepreneurs set up by the Scottish Government was given to firms linked to a panellist.

Sixteen of 18 recent Scottish Edge awards went to outfits under the wing of Entrepreneurial Spark, whose chief executive, Jim Duffy, helped create the shortlist. The Edge is run by jobs quango Scottish Enterprise for the government.

Scottish Tory MSP Murdo Fraser said: "I am sure Jim Duffy would not favour any of the entrepreneurs with whom he has a personal connection, but Scottish Enterprise should see the dangers of a perceived conflict of interest."

Mr Duffy said: "I am one of five members on the panel, with all decisions regarding entrants needing to be approved by all of us."