MSPs to further question water regulator and Government officials

A Holyrood committee will quiz officials from Scotland’s water industry regulator and the Scottish Government later this month, as it continues to examine the regulator’s finances.

A damning audit report in December last year revealed lavish spending at the Water Industry Commission for Scotland (Wics), including a course at Harvard Business School for a senior manager which cost almost £80,000.

Former Wics chief executive Alan Sutherland resigned hours after Audit Scotland published the report disclosing “unacceptable” spending.

It was later revealed he had claimed a £400 high-end restaurant meal on an office credit card, with the expense being paid despite failing to provide a receipt.

The Public Audit Committee will continue its scrutiny of the body on September 19, holding a further evidence session with Wics and the Scottish Government.

Committee convener Richard Leonard has suggested Government officials were “complicit” by failing to challenge the spending at Wics.

In June, it emerged that more staff members at Wics had benefited from executive training courses, including MBAs costing more than £70,000.

Interim chief executive David Satti told the committee the firm has trouble retaining staff, who depart for higher paid jobs, and has a “longstanding policy of funding MBA programmes” for those who show “consistent high performance”.

In a letter to the committee in late July, the Scottish Government’s director general of net zero said the policy at Wics of paying for MBAs had been in place since 2006.

However he said these courses were not subject to competitive procurement, adding: “Wics should have sought approval for these courses in line with the governance framework in place and sought approval from the sponsorship team for these in advance.

“Retrospective approval was only sought for one course at Harvard Business School.”