A damning report by the Scottish Parliament’s Public Audit Committee has revealed a “catalogue of failures” at the Water Industry Commission for Scotland (WICS), leading to what it described as “inappropriate and unacceptable” use of public funds.
The spending scandal, which involved lavish meals, luxury goods, and questionable expenses, was compounded by what the committee called a “serious lack of oversight” by the Scottish Government.
The committee’s investigation uncovered inappropriate spending on high-end items including a £170 Mulberry wallet and £290 glasses by former WICS chief executive Alan Sutherland. He also claimed a £400 meal without providing a receipt. His departure in 2023 cost the public purse £105,488, including six months’ salary and legal fees.
WICS also spent over £77,000 on a course for a senior executive at Harvard Business School, and £2,600 on Christmas gift cards for staff. The original Audit Scotland report found nearly £75,000 of spending failed to meet public spending rules, and £20,000 did not represent value for money.
The Public Audit Committee criticised both the regulator and the Scottish Government. Committee convener MSP Richard Leonard said:
“That the body, charged with promoting long term value from Scottish Water to its customers, itself failed to live up to the standards required of a public body left the Committee with deep concerns.
“But the Committee is clear that there also appears to have been a serious lack of oversight from the Scottish Government. This failure from those who are meant to be safeguarding the public purse is simply unacceptable.”
Tory MSP and committee member Graham Simpson added:
“From lavish five-star dinners to swanky trips abroad flying business class and expensive training courses – all on the public purse – this organisation had a wild west approach to spending.
“The Scottish Government, who were meant to be watching what was going on, was sleeping at the wheel and must also take the rap.”
The committee’s report confirms that no further non-compliant spending was identified between January and March 2024, but warns that scrutiny must continue. It recommends refresher training for WICS board members and a review of the Scottish Government’s procedures for identifying risks within public bodies.
Leonard concluded:
“We have heard about significant changes within WICS and the organisation’s commitment to improve the governance arrangements. These are clearly welcome. But we want to see concrete evidence of these changes to ensure that the unacceptable culture that was in place has truly gone.”
