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Chamber

Meeting of the Parliament 04 September 2025

04 Sep 2025 · S6 · Meeting of the Parliament
Item of business
Water Industry Commission for Scotland (2022-23 and 2023-24 Audits)
Lumsden, Douglas Con North East Scotland Watch on SPTV

It gives me no pleasure to make this my first speech after recess.

I thank the committee for its forensic analysis of what went wrong at WICS. I welcome the convener’s contribution and the cabinet secretary’s words, which recognised the significant failings at the organisation.

The committee’s report catalogues a litany of errors that, at best, pushed the limits of the financial rules and that were, at worst, fraudulent. From a public viewpoint, there was clearly a massive waste of taxpayers’ money, which was used to line the pockets of quango fat cats who acted without fear of being caught or had some idea that they were untouchable and were simply taking what they were entitled to. From Mulberry wallets to lavish dinners, the culture of entitlement was rife. It is that spurious waste of taxpayers’ money that continues to undermine the confidence of the Scottish people in this devolved Government.

When those activities came to light and the chief executive was forced to resign, the Government continued to cost the taxpayer money with an ill-thought-out severance package. Audit Scotland said that that decision was taken too quickly and without considering the wider options. He should have been sacked for gross misconduct, not given a package to leave.

In Audit Scotland’s scathing report and in the committee’s report, we can see a culture of misspending, expenses claims that do not fit with policy and a flagrant disregard for ensuring benefit for the public purse. Audit Scotland found that WICS demonstrated poor governance over its finances, that there was little to no due process and that there was no concept of ensuring value for money. The way that senior officials used public money was simply “unacceptable”.

Audit Scotland also found that WICS needed to do more to ensure that it was delivering best value for money to the taxpayer. The board seemed to be disengaged with the day-to-day operation of the organisation, and oversight was not happening at any level. People need to understand that board membership for organisations such as WICS brings with it serious responsibilities, which seem to have been overlooked. Spending decisions were made without consultation with anyone, and the chief executive and senior management did not seek sign-off for large items of expenditure that should have been discussed.

Policies were in place but were ignored by the senior management team. That is a shocking state of affairs for any public body to be in. However, the list goes on. The committee’s report criticised the Scottish Government for not intervening on the WICS training policy. The Government was aware of the high cost of training, including—let us not forget—courses at Harvard University, which included all flights and accommodation, and we heard today that it was business-class travel.

The committee notes that there have been

“significant weaknesses and failings in the Scottish Government’s sponsorship of WICS. These have led to a failure to ensure appropriate safeguarding of public funds.”

More public money has been wasted. The report goes on to further criticise the Government for appearing to encourage the chief executive to negotiate an early exit date. That meant that a full disciplinary process that would have examined a full account of the failings at WICS by the chief executive never happened.

Although the financial irregularities are bad enough, there were also significant failings in the culture of the organisation, with high levels of bullying being reported by staff. There was a poor work culture after Covid, and there were failings by management to address issues among the staff. All that speaks to a breakdown in the operation of WICS and to a failure in oversight by the Scottish Government. That has led to massive waste of taxpayers’ money and a decline in trust in our public bodies among the Scottish people. Responsibility for that lies solely at the feet of the Scottish Government.

Although the committee has received a helpful response from the new chief executive that accepts the committee’s recommendations and talks about enacting remedial policies to fix the financial irregularities, the Scottish Government’s assurances fall short. The Scottish National Party has created a quango culture of organisations delivering services that should be under the purview of the Scottish Government.

In the same item of business

The Deputy Presiding Officer (Annabelle Ewing) SNP
The next item of business is a debate on motion S6M-18680, in the name of Richard Leonard, on behalf of the Public Audit Committee, on the 2022-23 and 2023-2...
Richard Leonard (Central Scotland) (Lab) Lab
Being the convener of the Public Audit Committee is a privilege, and it is one which I will never take for granted. So I am grateful to be opening this after...
Graham Simpson (Central Scotland) (Reform) Reform
On that last point, does the convener agree that the committee never had an adequate explanation as to why the limit was removed?
Richard Leonard Lab
I thank Graham Simpson, who has been a very active member of this inquiry by the committee. I agree with him that there are still many unanswered questions. ...
The Cabinet Secretary for Climate Action and Energy (Gillian Martin) SNP
I am grateful for the opportunity to speak about the matters that are raised in the Public Audit Committee’s report on the Water Industry Commission for Scot...
Jamie Greene (West Scotland) (LD) LD
I make this intervention as a member of the Public Audit Committee rather than as its deputy convener. What do the failures of governance at executive or sen...
Gillian Martin SNP
Jamie Greene makes a fair point, which is one of the reasons why we carried out a review of the sponsorship arrangements between the Scottish Government and ...
Douglas Lumsden (North East Scotland) (Con) Con
Has there been any review of other organisations to see whether there have been other breaches of policies and processes similar to those that we have seen a...
Gillian Martin SNP
As I said, the sponsorship arrangements between the Government and public bodies have been completely reviewed. As part of that, we are ensuring that there a...
Sarah Boyack (Lothian) (Lab) Lab
One of the committee’s key recommendations was that a robust whistleblowing policy should be put in place for staff. It is one thing to have a sponsorship te...
The Deputy Presiding Officer SNP
It would be helpful if you could bring your remarks to a close soon, cabinet secretary.
Gillian Martin SNP
Sarah Boyack makes a very good point. One issue that was uncovered was that those in the lower ranks at WICS were afraid to speak out. That was part of a cul...
Douglas Lumsden (North East Scotland) (Con) Con
It gives me no pleasure to make this my first speech after recess. I thank the committee for its forensic analysis of what went wrong at WICS. I welcome the...
Gillian Martin SNP
I invite Douglas Lumsden to tell me what was missing in my speech. What more would he like to see from me by way of answering any of the questions in the rep...
Douglas Lumsden Con
The first thing that I would like to hear is an apology to the people of Scotland for all the money that has been wasted. WICS was under the remit of the Sco...
The Deputy Presiding Officer SNP
Always speak through the chair.
Douglas Lumsden Con
I would like to know whether the Scottish Government is doing a full review of all organisations to see whether such a culture exists in other places. Outsid...
Mark Ruskell (Mid Scotland and Fife) (Green) Green
Made a request to intervene.
The Deputy Presiding Officer SNP
The member is concluding.
Douglas Lumsden Con
That is set against the SNP Government’s never-ending preaching on what it thinks is best for the Scottish public. The cabinet secretary should hang her head...
Sarah Boyack (Lothian) (Lab) Lab
I thank the members of the Public Audit Committee for their work, and the clerks to the committee for their support. This is a damning committee report. Th...
Mark Ruskell (Mid Scotland and Fife) (Green) Green
I join members in thanking the Public Audit Committee. I am not a member of the committee, although I sit on the Scottish Commission for Public Audit. The wo...
The Deputy Presiding Officer SNP
We move to the open debate. I advise back benchers seeking to speak in the open debate that I require speeches of up to four minutes. 16:14
Colin Beattie (Midlothian North and Musselburgh) (SNP) SNP
I begin by thanking my colleagues in the Public Audit Committee, and the committee clerks, whose hard work helped to produce the report. The report is about ...
The Deputy Presiding Officer SNP
I call Tim Eagle, who is joining us remotely. 16:18
Tim Eagle (Highlands and Islands) (Con) Con
I apologise for not being able to be present in the chamber for this debate. I intend to keep my remarks brief, as Douglas Lumsden outlined perfectly the man...
Monica Lennon (Central Scotland) (Lab) Lab
I suspect that most of my constituents had never heard of WICS until this scandal erupted. Many more of them are now aware of this important regulator becaus...
Elena Whitham (Carrick, Cumnock and Doon Valley) (SNP) SNP
I, too, thank the committee for its dogged investigation into the matter. Proper spending of public money is of the utmost importance. The principle is not o...
Graham Simpson (Central Scotland) (Reform) Reform
Let us be clear: this was a major scandal. We have had some robust meetings, but these were some of the most astonishing meetings that I have ever been invol...
Douglas Lumsden Con
Will the member take an intervention?