Scotland's Water Watchdog in Hot Water: Lavish Spending Exposed

A damning report reveals shocking mismanagement of public funds at the Water Industry Commission for Scotland (Wics), a body tasked with regulating Scottish Water. The Scottish government’s lack of scrutiny has been labeled “simply unacceptable” by Holyrood’s public audit committee. According to the auditor general’s report, staggering expenses included:

• £77,350 for a senior manager to attend a course at Harvard Business School

• £170 for a Mulberry wallet

• £290 for glasses with no clear business purpose

• An extravagant £18,159 business-class flight for the director’s spouse to New Zealand

• £2,600 spent on Christmas gift cards for staff

In total, over £105,000 was spent on the former CEO’s departure, raising serious concerns about the governance culture within Wics. The approval processes were ignored, violating Scottish government policy that mandates advance consent for expenses exceeding £20,000.

Convener Richard Leonard expressed disbelief at the findings, emphasizing the extraordinary nature of the evidence reviewed, leading to significant changes in leadership, including the resignations of CEO Alan Sutherland and chairman Donald MacRae. Although the committee acknowledged recent efforts in governance improvements, they stressed the necessity for current board members to undergo refresher training to prevent future oversights.

The Scottish government commended the recent management changes but faced criticism for its failure to provide adequate oversight, asserting that previous expenditure practices were completely unacceptable. Interim chairman Ronnie Hinds vowed commitment to rebuilding trust and enhancing financial controls, underscoring a new focus on best value and upholding high standards amidst growing scrutiny.