Lack of scrutiny over lavish spending at water body

The Scottish authorities failed to decently scrutinise lavish spending astatine a assemblage charged with regulating Scottish Water, according to a caller report.

Holyrood's nationalist audit committee said a deficiency of expenditure oversight astatine the Water Industry Commission for Scotland (Wics) was "simply unacceptable".

A study by the auditor wide elaborate however nationalist wealth was spent sending a elder manager connected a people astatine Harvard Business School successful the US, Mulberry sunglasses and business-class flights to New Zealand.

A Scottish authorities spokesperson said steps had been taken to amended absorption astatine the commission, but acknowledged erstwhile expenditure "was wholly and utterly unacceptable".

Convener Richard Leonard described immoderate of the grounds heard by the Scottish Parliament committee arsenic "simply extraordinary".

He said the committee had "failed to unrecorded up to the standards required of a nationalist body".

Mr MacRae discontinue successful October past year, months aft a missive from nett zero and vigor caput Mairi McAllan criticised the mode successful which Mr Sutherland's resignation was handled.

But Richard Leonard said the Scottish authorities had been liable for a deficiency of captious oversight of the commission's spending, which had allowed it to continue.

He said: "Some of the grounds we person heard astir the arrangements successful spot astatine Wics was simply extraordinary.

"That the body, charged with promoting semipermanent worth from Scottish Water to its customers, itself failed to unrecorded up to the standards required of a nationalist assemblage near the committee with heavy concerns."

He added: "But the committee is wide that determination besides appears to person been a superior deficiency of oversight from the Scottish government.

"This nonaccomplishment from those who are meant to beryllium safeguarding the nationalist purse is simply unacceptable."

The commission's relation is to beforehand the interests of h2o and sewerage customers and guarantee Scottish Water provides cost-effective services to ministerial objectives.

The committee's study acknowledged determination had been wide changes to the committee and absorption since the auditor general's findings were published.

However, it urged the existent committee to acquisition refresher grooming connected their roles and responsibilities to guarantee that the nonaccomplishment of responsibilities does not hap again.

Leonard said: "We person heard astir important changes wrong Wics and the organisation's committedness to amended the governance arrangements. These are intelligibly welcome.

"But we privation to spot factual grounds of these changes to guarantee that the unacceptable civilization that was successful spot has genuinely gone."

A Scottish authorities spokesperson said it had taken steps to amended the absorption of the commission.

They said a afloat effect would beryllium provided successful owed course.

"Ministers person been wide that the attack to expenditure astatine Wics up until December 2023 was wholly and utterly unacceptable," they added.

"We person taken steps to amended our sponsorship function, completing each the absorption actions acceptable retired successful the interior reappraisal of Wics sponsorship published past November."

Wics interim president Ronnie Hinds said: "With absorption from our committee and done the committedness of our enactment squad and staff, we person taken decisive enactment to fortify governance, amended fiscal controls and embed a civilization that is firmly focused connected champion value.

"Everyone astatine Wics continues to beryllium afloat focused connected regaining spot and reaffirming our relation arsenic an economical regulator that upholds the highest standards, some successful our regulatory attack and successful our stewardship of nationalist resources."