Bus operator McGill's has launched legal action after missing out on £4.3million of Scottish Government funding for new electric buses.
The Greenock-based company, which operates the Aberdeen Adventurer tourist bus, was unsuccessful in the third round of the Scottish Zero Emission Bus Challenge Fund, under which £45million was awarded to Ember, Stagecoach, Rock Road, Lothian and First Bus.
McGill's has lodged a claim with the Competition Appeal Tribunal seeking to overturn the decision, arguing the funding process lacked transparency. The company said it had intended to use the funding to buy buses from Alexander Dennis.
Owner Sandy Easdale said: "The largest share – £13m – was awarded to coach firm Ember to buy 100 Chinese electric coaches to expand its existing network, which would not result in any diesel vehicles being replaced.
"We have questionable decisions being made on large amounts of public money by nameless people in secret rooms who are trying to avoid scrutiny.
"Decisions on taxpayers' sums of this magnitude should be fully transparent and decision-makers should be willing to be held accountable."
A Transport Scotland spokesman said: "We are aware that McGill's Buses has submitted a claim to the Competition Appeal Tribunal. As this matter relates to legal proceedings, it would not be appropriate to comment further at this stage."