A consortium was selected to build a cancer centre amid concerns about the involvement of construction companies caught colluding on bids for other projects, a committee heard.

The public accounts committee scrutinised representatives of Velindre University NHS Trust over the procurement of the new hospital on the Northern Meadows in Whitchurch, Cardiff.

The Tories’ Natasha Asghar pressed the trust about court cases involving two members of the Acorn consortium, Sacyr and Kajima, which won the construction contract.

Lauren Fear, interim executive director, said the trust became aware of a case found against Sacyr after final bids were submitted in July 2022.

The company was one of six construction firms fined a total of €204m by Spain’s antitrust regulator for colluding in submitting bids for public projects over 25 years.

Ms Fear, who is responsible for strategic transformation, planning and digital, confirmed the trust learned of the case before a successful participant letter was sent.

She said Velindre took advice on Sacyr’s responses to a pre-qualification questionnaire in 2021, particularly grounds of exclusion such as criminality and distorting competition.

She told the meeting on November 21 that law firm DLA Piper advised the responses were still valid because the case was ‘live’ and Sacyr intended to appeal.

On Kajima, a Japanese firm which was similarly convicted for bid-rigging, Ms Fear said the trust was made aware in February 2023 via the press.

She sought to draw a distinction between Kajima group and Sacyr, saying the former is not directly involved in the consortium but two subsidiaries are.

Plaid Cymru’s Adam Price asked: “Is it your evidence… that a parent company could have … been found guilty of very serious criminal corruption and as long as it’s created a protective shell for itself … there would be no problem procuring from that company?”

Ms Fear replied: “Our understanding based on the legal advice is … it’s neither an entity in the consortium directly or a financial guarantor of one of those entities.”

Labour’s Rhianon Passmore called for assurances the procurement process was rigorous.