Meeting of the Parliament 04 September 2025
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 optional or aspirational; it is fundamental to public trust in Government and public bodies. The financial governance that we have seen at WICS was, to be frank, gobsmacking.
The findings laid out in the Public Audit Committee’s report paint a scandalous picture—one of serious failures in financial management, in board oversight and in culture at the very top of a public body. As has already been rehearsed today, all the lavish spendings that we have heard about are not appropriate uses of public funds—they do not reflect public sector values, they fail to deliver value for money and they absolutely erode public confidence.
The failures in governance were just as stark. The report found that the WICS board did not exercise the oversight that was expected of it. Any of us who are or have been members of boards must absolutely understand the responsibility that comes with it when it involves careful management of public resources. Decisions in this case were taken without any due process, without any challenge and without reference to value. The culture that developed within the organisation, which was described by staff as “toxic”, further compounded those governance breakdowns.
My thoughts are with the staff who endured the reported toxic environment, as I know how damaging it can be, especially when there appears to be no clear path to challenge or change it.
Acknowledging those failures is only part of the response. The Scottish Government must expect the highest standards from its public bodies. In the light of the issues raised, action has now been taken. The Government commissioned and published and is now implementing the findings of both internal and independent reviews, which have led to concrete changes in how WICS is governed, in how the Scottish Government exercises its sponsorship responsibilities and in how whistleblowers are supported.
We have seen some progress. WICS has accepted responsibility and has begun the hard work of reform, by tightening financial controls, strengthening internal assurances and refocusing its leadership on transparency and accountability. The Scottish Government, for its part, has taken steps to ensure that its oversight of all public bodies, WICS included, is stronger, clearer and more robust. It is good to hear from the cabinet minister today that reliance on one person’s reporting and sponsorship arrangements will no longer happen.
Public money must always be treated with respect. The reforms are not just about process but about trust—trust that public bodies are acting in the public interest, trust that decisions are taken with integrity, and trust that, where there has been a failure, there is accountability.
Going forward, the focus must now be on embedding a culture of compliance in WICS—one that values scrutiny, upholds standards and earns public confidence.
I echo the calls for a focus on the future of Scottish Water. As it is a beloved institution, we need to make sure that it is fit for purpose. On the operations of other quangos out there, we need certainty that we can have confidence in our public bodies and how they use public funds.
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