A 'catalogue of failures' led to issues at Scotland's water watchdog

The report, published by the Scottish Parliament’s Public Audit Committee, follows the Committee’s consideration of the Auditor General for Scotland’s (AGS) 2022/23 and 2023/24 audits of WICS.

The Committee highlighted ‘inappropriate and unacceptable’ spending on training courses for senior staff, benefits to the workforce and, hospitality.

The report 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.

In considering the issues raised by the AGS’ reports, the Committee heard evidence from both WICS and the Scottish Government in their role as sponsoring the work of WICS

The Committee’s new report highlights that there were also significant weaknesses and 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. This raised serious concerns for the Committee.

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.

Speaking as the report launched, Committee Convener Richard Leonard MSP 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.”

In its report, the Committee notes that there have been widespread Board and management departures from WICS, and indeed from the Scottish Government, since the audit reports were published.

Whilst the Committee 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.

The Convener continued:

“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.”