A recent report has revealed that the Scottish government did not adequately oversee the extravagant spending at the Water Industry Commission for Scotland (Wics), the body responsible for regulating Scottish Water. The lack of scrutiny over expenditures at Wics was deemed “simply unacceptable” by the Holyrood’s public audit committee. According to the auditor general’s report, public funds were used to send a senior manager to Harvard Business School, purchase Mulberry sunglasses, and book business-class flights to New Zealand.

In response to the findings, a Scottish government spokesperson acknowledged that there had been mismanagement at the commission and steps had been taken to address this issue. Convener Richard Leonard expressed his shock at the evidence presented to the Scottish Parliament committee, stating that the commission had failed to meet the required standards for a public body. The Scottish government was also criticized for a lack of oversight, which allowed such spending practices to persist.

The report highlighted the resignation of former Wics chairman Donald MacRae and the subsequent changes within the board and management of the commission. It encouraged the current board to undergo refresher training on their roles and responsibilities to avoid a recurrence of mismanagement. Leonard emphasized the importance of tangible evidence to demonstrate that the negative culture within Wics had been eradicated for good.

Despite the shortcomings identified in the report, efforts have been made to improve the management of the commission. A Scottish government spokesperson mentioned that steps had been taken to enhance the supervision of expenditures at Wics and all recommendations from an internal review had been implemented. Wics interim chairman Ronnie Hinds reiterated the commitment of the board and leadership team to strengthen governance, enhance financial controls, and foster a culture of best value. The goal is to rebuild trust and uphold high standards as an economic regulator overseeing public resources

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