MSPs have been accused of putting public safety at risk by delaying the start of demolition work on the Lundin Links Hotel.
The hotel in Fife was severely damaged by fire on 18 August and Police Scotland stated yesterday that two 15-year-old youths had been charged in connection with the incident.
Also on Monday, a community meeting heard claims that the Scottish Government is holding up the demolition of the site.
The current administration is the main creditor of Kapital Residential, which owned the C-listed building and filed for liquidation in June.
The company received an £850,000 Covid Recovery Loan, but only £150,000 was paid back. As the main creditor, ministers must agree to the demolition before work can get underway.
Scottish Conservative MSP Murdo Fraser questioned why the owners of a derelict building deemed a "major fire risk" were handed the loan in the first place.
He said: "Questions must be answered over checks that were carried out by ministers before they agreed to hand out such a significant sum, especially when many were complaining about the slow processes of the SNP’s funding schemes."
After the 17-hour blaze, Fife Council announced that the building was damaged beyond repair and would have to be demolished.
The liquidators have appointed a demolition contractor and had aimed to get the underway by 12 September.
According to a report of the meeting in The Courier, liquidator Claire Middlebrook is now taking legal advice with a view to possible court action.
At the moment, the A915 past the site is still closed for safety reasons, which is affecting the narrow streets of Lundin Links and Lower Largo. Local business owners have complained about lower footfall, while residents across the East Neuk of Fife currently face long traffic diversions.
Zaphar Iqbal, who runs the Premier Store in the village, told the meeting he may have to close. "It's really affecting me and other businesses," he said. "A third of my business has gone and I don’t know how long we can keep going."
Local Liberal Democrat MP Wendy Chamberlain commented: "The fire and ongoing disruption are causing enormous distress to local residents - over 100 of them were present at a community meeting, where they were told that the government is not giving a 'firm response'.
"On top of all this, the loan provided by the Scottish Government was never fully repaid and it was given out when the government never bothered to check the company’s most up-to-date accounts.
"That’s why I have written to the government to urge them to fully engage with the liquidator, demolish the building and bring this sorry mess to a swift conclusion."
A Scottish Government spokesperson responded: "It is categorically untrue to claim that the Scottish Government is delaying demolition of this building - arrangements for demolition are the sole responsibility of the liquidators.
"They asked for our views on 22 August and we replied the same day, stating unequivocally that we have no objections to the building being brought down.
"Our SME liquidity fund was brought in to provide urgent support to small and medium-size house builders during the pandemic, helping to ensure homes could continue to be delivered despite the intense difficulties for the sector at that time."
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