WICS: Ministers rapped for 'failings' in public spending scandal

The Herald Scotland

21-05-2025

It highlighted "serious concerns" over shortcomings in the Scottish Government's approach, with a "complete failure" by the Government to challenge the culture at WICS, which led to an "unacceptable use of public funds".
Leading Scottish Conservative Graham Simpson said the "whole scandal" raises the question of whether WICS should be allowed to continue at all in its current form.
Graham SimpsonMinisters had come under increasing scrutiny themselves after admitting they gave retrospective approval over a controversial move by WICS that ignored Scotland when sending chief operating officer Michelle Ashford off on an £80,000 training trip to the US which included two £5000 Transatlantic flights.
Ms Ashford's trip to Harvard Business School as part of a run of spending described as "unacceptable" by public spending watchdogs Audit Scotland.
READ MORE: What is WICS and why is it at the centre of a national scandal?
It led to WICS chief executive Alan Sutherland, one of the highest paid public sector workers, being forced from his role with immediate effect in December, 2023.
Public spending watchdog Audit Scotland had been critical over failing to seek Scottish Government approval for spending in advance.
The committee says the Scottish Government should review systems for identifying concerns with public bodies to ensure any issues are caught at an early stage.
The payouts included sending the head of external relations and strategy on a 13-day Transatlantic executive development programme course costing £20,404 in 2019 at Columbia University in New York. Travel and accommodation expenses amounted to £1,056.
There was an £84,620 spend for a head of retail on an executive Master of Business Administration [MBA] course over two years from September, 2018 which included time in London and a five-day assignment in Argentina with travel and accommodation costing £10,856.
A similar two year course for another senior manager from January, 2017, involving an assignment in Argentina cost £72,795 including £11,713 travel and accommodation expenses.
And some £87,769 was spent on 40 days of executive coaching for the senior management and executive team over five years at the Stirling office.
The committee highlighted 'inappropriate and unacceptable' spending on training courses for senior staff, benefits to the workforce and, hospitality.
A new report from Holyrood's Public Audit Committee found that the board of WICS failed in its responsibilities which led to a lack of financial control. This meant that decisions taken did not always provide value for money to the public purse, with WICS also showing a failure to follow even its own rules.
Video: WICS was the feature of a rebrand promotional film.
Committee convener Richard Leonard said: Some of the evidence we have heard about the arrangements in place at WICS was simply extraordinary.
'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.'
Disgraced WICS £182,500-a-year executive Alan Sutherland, was given six months salary in lieu of notice which the watchdog says "he was legally due".
While the committee said it recognises the changes which have been made at WICS, it has called on the current board to undergo refresher training on their roles and responsibilities to ensure that the failure of responsibilities does not happen again.
Mr Leonard added: '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.'
Scottish Conservative MSP Graham Simpson said: 'The behaviour of WICS has been deplorable.
'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."
A Scottish Government spokesman said: 'Ministers have been clear that the approach to expenditure at the Water Industry Commission for Scotland (WICS) up until December 2023 was completely and utterly unacceptable.
'We have taken steps to improve our sponsorship function, completing all the management actions set out in the internal review of WICS sponsorship published last November.
'We want to thank the Public Audit Committee's for their report and will provide a full government response in due course.'