Latest news with #WICS
The Herald Scotland
21-05-2025
- Business
- The Herald Scotland
WICS: Ministers rapped for 'failings' in public spending scandal
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.'
STV News
16-05-2025
- Business
- STV News
'Catalogue of failures' led to spending scandal at Scotland's water watchdog
A 'catalogue of failures' is to blame for the 'inappropriate and unacceptable' use of public money at Scotland's water watchdog, a report has found. The Water Industry Commission for Scotland is said to have been wasting public money, 'failing in its responsibilities' – leading to a lack of financial control, failing to follow its own rules, and leaving MSPs with 'deep concerns'. The Scottish Parliament's Public Audit Committee also found 'significant weaknesses and failings in the Scottish Government's approach' to the watchdog's management. The findings have come from the committee's latest report into the Water Industry Commission for Scotland (WICS) finances on Friday. The board's 'inappropriate and unacceptable' spending on training courses for senior staff, benefits to the workforce and, hospitality has already been widely reported. However, the report said there was also a 'complete failure by the Scottish Government to challenge the culture at WICS', which led to the unacceptable use of public funds. Speaking as the report launched, audit committee convener MSP Richard Leonard called the evidence he heard about the arrangements at WICS '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,' Leonard said. '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.' The report on Friday is the latest in a series of investigations to try and figure out what went wrong, and how to prevent failures like it in the future. The Committee has now called on the Scottish Government to review its systems for identifying concerns with public bodies to ensure any issues are caught at an early stage. The water watchdog first came under scrutiny in 2023 after an Audit Scotland report found evidence of 'inappropriate spending'. That original report found almost £75,000 of WICS expenditure did not meet public spending rules and £20,000 did not represent value for money. More specifically, the report revealed that the former chief executive of WICS had an expense claim for a £170 Mulberry wallet approved during his time on the board. Alan Sutherland also put glasses costing £290 on his expenses, among a number of 'bulk' claims which appear to have been approved en masse without proper oversight. Further investigations later revealed that Mr Sutherland had claimed a £400 high-end restaurant meal on an office credit card, with the expense being paid despite failing to provide a receipt. He stood down from the board within hours of an Audit Scotland report being released. Mr Sutherland's departure cost the public purse £105,488 as he was paid six months' salary and legal fees were incurred. WICS also spent more than £77,000 on a course for a senior executive at Harvard Business School in the US. A further £2,600 was claimed to provide every staff member with a £100 gift card for Christmas. The report recognised that there has been widespread Board and management departures from WICS, and indeed from the Scottish Government, since the first audit reports were published in 2023. The Committee also confirmed that no further non-compliant spending was found between January and March 2024, but they said 'this must be kept under close scrutiny'. Nonetheless, the audit committee called on the current WICS board to undergo refresher training on their roles and responsibilities to ensure that the failure of responsibilities does not happen again. It also called on the Scottish Government to review its systems for identifying concerns with public bodies to ensure any issues are caught at an early stage. '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,' Leonard said. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Herald Scotland
16-05-2025
- Business
- The Herald Scotland
What is WICS and why is it at the centre of a national scandal?
It highlighted "serious concerns" over failings 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". What is WICS? The Water Industry Commission for Scotland (WICS) is the economic regulator of Scotland's water and sewerage services. Established in 2005, it operates as an executive non-departmental public body of the Scottish Government, based in Stirling. WICS oversees Scottish Water, the publicly owned utility serving over 2.5 million households and 150,000 businesses across Scotland. What is WICS's core role? WICS's primary function is to promote the interests of water and sewerage customers in Scotland by ensuring they receive high-quality services at a reasonable cost. Its responsibilities include determining price limits for Scottish Water to deliver ministers' objectives at the lowest reasonable overall cost and assessing Scottish Water's performance in areas such as customer service, investment, costs, and leakage. It also oversees the competitive retail market for non-household water and sewerage services. It supports the sector to achieve its long-term vision, challenging Scottish Water to attain best-in-class service levels, and becoming an international leader in economic regulation. How does WICS support Scotland's water sector? WICS plays a pivotal role in ensuring that Scottish Water operates efficiently and effectively, balancing the need for investment in infrastructure with the goal of keeping customer bills affordable. By setting price limits and monitoring performance, WICS ensures that Scottish Water meets the objectives set by the Scottish Government including improvements in water quality, environmental performance, and customer service. Why is WICS in the public spotlight? It has faced significant scrutiny due to revelations of financial mismanagement and governance failures. An Audit Scotland report highlighted inappropriate public spending, including: a £77,000 Harvard Business School course for a senior executive, lavish spending on meals, with some exceeding £200 per head and £100 gift vouchers for staff, surpassing the £75 limit for gifts. READ MORE: Scots watchdog using public funds to settle 1000s in unpaid staff tax The payouts also 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. The expenditure was deemed non-compliant with Scottish Government rules and did not represent value for money. What were the consequences of these revelations? It led to significant leadership changes. Alan Sutherland resigned as WICS chief executive on New Year's Eve 2023. He received a payment of £86,268, representing half a year's salary in lieu of a six-month notice period, along with additional payments covering legal fees and employer National Insurance contributions. Donald MacRae, the chairman of WICS, stepped down in October 2024 following criticism over the handling of the financial issues. Were there other issues within WICS beyond financial mismanagement? Yes, a workplace stress survey conducted in February 2024 revealed that nearly a third of WICS employees reported experiencing bullying at work. This pointed to a toxic work culture within the organisation, compounding the concerns raised by the financial mismanagement. How has WICS responded to these challenges? WICS has acknowledged past weaknesses in governance and financial controls. The organization has committed to implementing changes to improve its operations, including developing a 21-point improvement plan to address the issues identified in the audit. It said it would be undertaking cultural change efforts to improve the work environment and prevent bullying. Why has the Scottish Government been criticised? The scandal has dented trust in the Scottish Government's stewardship of public funds, especially given that WICS is a regulator meant to promote efficiency and value for money. A lack of oversight. Officials did not adequately challenge or question large expenditures, even though they were notified of them. This included the Harvard course and excessive hospitality bills. Critics say there were signs of mismanagement as early as 2020, yet the Scottish Government did not step in decisively to address them. WICS is the economic regulator of Scotland's water and sewerage civil servants in charge of "sponsoring" or supervising WICS were found by an internal audit to lack the rigour and curiosity necessary to spot and stop poor practices. Opposition parties have accused the Scottish Government of 'negligence,' 'mismanagement,' and even covering up failings. What is the current status of WICS? As of May 2025, WICS is undergoing a period of transformation to address the issues that have come to light. The organisation is working to implement the recommendations from the independent review and its own improvement plan. Leadership changes have been made, and efforts are underway to improve governance, financial controls, and workplace culture.
BBC News
16-05-2025
- Business
- BBC News
Lack of Scottish government of scrutiny over lavish spending at water regulator
The Scottish government failed to properly scrutinise lavish spending at a body charged with regulating Scottish Water, according to a new public audit committee said a lack of expenditure oversight at the Water Industry Commission for Scotland (Wics) was "simply unacceptable".A report by the auditor general detailed how public money was spent sending a senior manager on a course at Harvard Business School in the US, Mulberry sunglasses and business-class flights to New Zealand.A Scottish government spokesperson said steps had been taken to improve management at the commission, but acknowledged previous expenditure "was completely and utterly unacceptable". Convener Richard Leonard described some of the evidence heard by the Scottish Parliament committee as "simply extraordinary".He said the commission had "failed to live up to the standards required of a public body". Wics chief executive Alan Sutherland, and its chairman Donald MacRae stood down in the wake of reports by auditor general Stephen Boyle in 2023 and consultant Ernst & Young the following found a total of £77,350 was spent on Wics chief operating officer Michelle Ashford attending the Harvard course, which included return flights to completed MBA courses worth about £70, auditor general's report found that approval for the expenses was only sought afterwards, despite a Scottish government policy stating approval was required in advance for any expenses above £20, Sutherland also signed off on a business class flight from New Zealand - worth more than £18,159 - for the director of corporate and international affairs and her spouse. Mr Sutherland was also found to have submitted expenses claims for a £170 Mulberry wallet and £290 glasses which "had no clear business purpose".A further £2,600 went on providing every staff member with a £100 gift card for Christmas, while it was noted the commission had an "unusual" policy allowing staff to claim alcohol on meals cost a total of £2,699 - £996 of which was spent on Sutherland was given a £14,000 payment for annual leave he did not use and in December 2024 it emerged Wics spent a total of £105,000 on his departure from the organisation a year earlier. 'Unacceptable culture' Mr MacRae quit in October last year, months after a letter from net zero and energy secretary Mairi McAllan criticised the way in which Mr Sutherland's resignation was Richard Leonard said the Scottish government had been responsible for a lack of critical oversight of the commission's spending, which had allowed it to 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."He added: "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." The commission's role is to promote the interests of water and sewerage customers and ensure Scottish Water provides cost-effective services to ministerial committee's report acknowledged there had been widespread changes to the board and management since the auditor general's findings were it urged the current board to undergo refresher training on their roles and responsibilities to ensure that the failure of responsibilities does not happen said: "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." A Scottish government spokesperson said it had taken steps to improve the management of the said a full response would be provided in due course."Ministers have been clear that the approach to expenditure at Wics up until December 2023 was completely and utterly unacceptable," they added."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."Wics interim chairman Ronnie Hinds said: "With direction from our board and through the commitment of our leadership team and staff, we have taken decisive action to strengthen governance, improve financial controls and embed a culture that is firmly focused on best value."Everyone at Wics continues to be fully focused on regaining trust and reaffirming our role as an economic regulator that upholds the highest standards, both in our regulatory approach and in our stewardship of public resources."
Daily Mail
04-05-2025
- Daily Mail
Car-crash driver had seizure before plowing into camp and killing four young people, lawyer says
An Illinois woman whose car killed four young people after it plowed into an after-school camp had suffered a seizure, her lawyer says. The crash on Monday killed three children and a teenager when the black Jeep veered off the road near Springfield, Illinois. Marianne Akers, 44, was driving home from work at about 3pm when she suffered a seizure that left her 'utterly incapacitated,' attorney W Scott Hanken said. Hanken, a criminal justice attorney in Springfield, revealed to local ABC affiliate, WICS News, that Akers suffered a seizure before her vehicle sped off the road and veered through the YNOT Outdoors Summer and After School Camp in Chatham, a village outside of Springfield. Hanken explained that the mother of two had left work at 3 pm and was traveling westbound when she suffered a seizure 'of some type of degree.' 'It rendered her completely and utterly incapacitated at the time, and as a result of that seizure, she has no recollection of what occurred,' he said. Hanken said that Akers had no history of seizures and wasn't on any medications that would have impaired her driving. 'No one contemplated this happening. She surely didn't. It was a perfect storm of events that, if she could take back she would, just like anyone else,' Hanken told WICS. Akers' lawyer said she was devastated and fully cooperating with law enforcement. The Illinois State Police hasn't yet confirmed the cause of the crash, and a spokesperson told that the investigation is ongoing. Police said that Akers' car left the road at around 3.20 pm and traveled through a field before crashing into the east side of the YNOT After School Camp, which stands for Youth Needing Other Things Outdoors. Akers' Jeep then crossed a gravel road and crashed into a pole and a fence. She was transported to a local hospital but was uninjured and released. Police said on Thursday that an initial toxicology report revealed that she didn't have alcohol or any controlled substances in her system at the time of the crash. Akers was the driver and sole occupant of the vehicle. The four victims were killed on the scene. Police announced that the victims were Kathryn Corley and Alma Buhnerkempe, both seven, Ainsley Grace Johnson, eight, and Rylee Britton, 18. Britton was a high school student who helped run the after-school program. She was planning on studying English and secondary education at Iowa University. Her classmates described her as 'super intelligent' and 'unconditionally nice,' adding that she 'always made people laugh.' Ainsley was a dancer at Studio M Dance Centre. Her dance instructor, Mariah Clark, said she always 'brought so much light and joy into my class.' 'Her smile was so bright, her personality was already so big at such a young age, and she danced like she meant it. I will forever keep Ainsley in my heart,' Clark added. Kathryn went by the nickname Kit Kat and was described in her obituary as 'brightening the lives of everyone she encountered with her loving nature and unforgettable personality.' 'Alma came into this world exactly how she lived – in a burst of activity,' Alma's obituary read. 'From that point on, she never stopped. She lit up our world with an infectious energy, a goofy sense of humor, and a sense of compassion that was boundless.' Two separate vigils were held to honor the victims in the days following the crash. The three children who were killed were students at the Ball-Chatham School District. Britton's father, Zachary Britton, told the crowd at her vigil that seeing the support for his daughter made him smile. 'Our hearts are broken, but this helps a little bit,' USA Today reported. Of the six children hospitalized after the crash, two have been released. Ella Orsi, another seven-year-old at YNOT, is fighting severe injuries. She suffered facial fractures, a broken jaw, damaged teeth, brain swelling and brain bleeding from the crash. Family friend Casey Sitko said that she has been responsive and can squeeze her parents' hands. 'Ella is an absolute joy to be around. She loves to have fun, make jokes, and laugh! Her smile is infectious, and we can't wait to see it again,' she said. A spokesperson for the Illinois State Police Department told that there are no further updates on the case and the investigation remains ongoing. Akers hasn't been charged with any crime. She is a mom of a teenage boy and girl and previously worked in food service at Chatham Elementary School. She now works for the Illinois Department of Transportation's Bureau of Business Services and at the police department. ISP previously clarified that Akers wasn't an officer or investigator with the department.
