MSPs seek more detail from WICS on culture and spending following audit criticism

The Scottish Government Public Audit Committee (PAC) has requested further information from the Water Industry Commission for Scotland (WICS), in its ongoing scrutiny of the regulator.

This relates to the Auditor General for Scotland’s (AGS) report on WICS’ audited annual report and accounts for 2022-23, which criticised governance and financial management issues. It also relates to subsequent committee hearings and exchanges of correspondence on these issues.

In a letter to interim WICS chief executive David Satti, PAC convenor Richard Leonard MSP requested the following by 7 June:

• Information on what steps WICS is taking to address cultural issues. The AGS highlighted cultural issues with achieving value for money from public funds, and subsequently in correspondence, chief operating officer Michelle Ashford has described the 2023 working situation as a “toxic environment that caused staff to create dysfunctional coping mechanisms in order to survive”. She told the PAC in a written submission: “A change in culture is required and this cannot be done through revising policies and procedures alone." 

• An up-to-date copy of the review of data sets of transactions throughout 2022-23 and 2023-24 undertaken by WICS, in addition to the separate review conducted by the internal audit team.

• Further information relating to the departure of former chief executive Alan Sutherland.

• If desired, a response to any other issues raised by Ashford in her correspondence. This chiefly concerned the circumstances surrounding her attendance at the Harvard Business School Advanced Management Programme. These were criticised in the AGS report. She explained the details had not been set out clearly to the Committee by her colleagues at the 21 March hearing, despite her providing detail to them in advance of the session. Ashford said her Harvard programme was “not a secret” and the sponsor team at the Scottish Government was aware of it.