Lack of Scottish government of scrutiny over lavish spending at water regulator

The Scottish authorities did not correctly scrutinise lavish spending at a physique charged with regulating Scottish Water, in line with a brand new report.

Holyrood’s public audit committee mentioned an absence of expenditure oversight on the Water Business Fee for Scotland (Wics) was “merely unacceptable”.

A report by the auditor normal detailed how public cash was spent sending a senior supervisor on a course at Harvard Enterprise College within the US, Mulberry sun shades and business-class flights to New Zealand.

A Scottish authorities spokesperson mentioned steps had been taken to enhance administration on the fee, however acknowledged earlier expenditure “was fully and completely unacceptable”.

Convener Richard Leonard described a few of the proof heard by the Scottish Parliament committee as “merely extraordinary”.

He mentioned the fee had “did not dwell as much as the requirements required of a public physique”.

Mr MacRae give up in October final 12 months, months after a letter from net zero and energy secretary Mairi McAllan criticised the way in which Mr Sutherland’s resignation was dealt with.

However Richard Leonard mentioned the Scottish authorities had been accountable for an absence of crucial oversight of the fee’s spending, which had allowed it to proceed.

He mentioned: “A few of the proof now we have heard concerning the preparations in place at Wics was merely extraordinary.

“That the physique, charged with selling long-term worth from Scottish Water to its prospects, itself did not dwell as much as the requirements required of a public physique left the committee with deep considerations.”

He added: “However the committee is evident that there additionally seems to have been a severe lack of oversight from the Scottish authorities.

“This failure from those that are supposed to be safeguarding the general public purse is solely unacceptable.”

The fee’s position is to advertise the pursuits of water and sewerage prospects and guarantee Scottish Water gives cost-effective companies to ministerial targets.

The committee’s report acknowledged there had been widespread modifications to the board and administration for the reason that auditor normal’s findings had been printed.

Nevertheless, it urged the present board to endure refresher coaching on their roles and tasks to make sure that the failure of tasks doesn’t occur once more.

Leonard mentioned: “We’ve got heard about vital modifications inside Wics and the organisation’s dedication to enhance the governance preparations. These are clearly welcome.

“However we wish to see concrete proof of those modifications to make sure that the unacceptable tradition that was in place has actually gone.”

A Scottish authorities spokesperson mentioned it had taken steps to enhance the administration of the fee.

They mentioned a full response can be offered sooner or later.

“Ministers have been clear that the strategy to expenditure at Wics up till December 2023 was fully and completely unacceptable,” they added.

“We’ve got taken steps to enhance our sponsorship operate, finishing all of the administration actions set out within the inside assessment of Wics sponsorship printed final November.”

Wics interim chairman Ronnie Hinds mentioned: “With route from our board and thru the dedication of our management staff and workers, now we have taken decisive motion to strengthen governance, enhance monetary controls and embed a tradition that’s firmly centered on greatest worth.

“Everybody at Wics continues to be absolutely centered on regaining belief and reaffirming our position as an financial regulator that upholds the very best requirements, each in our regulatory strategy and in our stewardship of public sources.”