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MSPs call for WICS review to report promptly, following latest audit committee scrutiny

by Karma Loveday

Members of the Scottish Parliament have indicated that swift action should be taken, if it proves necessary, to remedy concerns about governance at the Water Industry Commission for Scotland (WICS).


On Thursday, the Public Audit Committee (PAC) took further evidence from leaders at WICS and the Scottish Government in public, and the Auditor General for Scotland in private, in its ongoing scrutiny of the 2022/23 audit of WICS and related matters. Among the topics discussed were inconsistent accounts over whether ministerial approval was given before or after the settlement package was agreed with WICS’ former chief executive after his resignation in December 2023; the WICS board’s oversight of expenditure; and the internal and external reviews of the regulator currently being conducted.


During questions in the Scottish Parliament later that day, Jamie Greene, deputy convenor of the PAC, called for the independent review of WICS to be published promptly. He said: “We need that review pretty quickly, because the evidence that we took in the Public Audit Committee this morning was damning — actually, it was astonishing.


“That example of the mismanagement of a public body is one of the most egregious that I have come across since I joined the Parliament. Hundreds of thousands of pounds of public money were spent on corporate cards. There was a toxic environment. There was a section 22 report from Audit Scotland. A chief executive officer was paid off with six months’ salary, and no one seems to know who signed that off — there is still a dispute over that. I therefore ask for some reassurances that the Scottish Government is absolutely all over the issue. We need to restore faith in public bodies, and anyone in charge of one who is found to have misused public money must go.”


Responding, acting cabinet secretary for net zero and energy Gillian Martin said the review was not yet finalised and publication timescales not yet agreed – but she agreed that “if there is anything to answer, we must act swiftly”.


She took the opportunity to reiterate the government’s position on the resignation package issue: “I also want to mention the signing off of the settlement agreement. The former CEO resigned on 19 December, and a settlement agreement was signed by the chair on 4 January and by the former CEO on 5 January. However, the Government was not informed until we saw emails from WICS on 12 January asking for our sign-off on payment. That is not in line with the conditions and requirements set out in the Scottish public finance manual. Ms McAllan [previous cabinet secretary, currently on maternity leave] made that very clear to the chair at the time.”


WICS leaders have previously said they have made changes, and are continuing work to address financial, cultural and governance concerns.

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