Scotland’s top water watchdog was meant to keep the taps flowing efficiently — instead, it’s now drowning in scandal.
A blistering report from Holyrood’s public audit committee has revealed eye-watering spending at the Water Industry Commission for Scotland (WICS), raising serious questions over government oversight and public accountability. From luxury wallets to Harvard Business School courses, the culture at WICS, once seen as a stable regulatory body, has been condemned as one of unchecked privilege and poor scrutiny.
At the centre of it all: a system that allowed senior figures to sign off expenses with virtually no external challenge — and a Scottish Government that failed to ask the right questions, or any questions at all.
A Culture of Excess — And No One Stopped It
When Alan Sutherland, WICS’ long-serving chief executive, quietly stepped down in 2023, few outside the industry took notice. But now it’s clear: his exit followed revelations of staggering expenses and governance failures.
The public audit committee didn’t mince its words. In its report published this week, the committee said the lack of financial oversight was “simply unacceptable.” At a time when ordinary Scots are being told to cut back on water usage and brace for rising costs, the regulator was burning public money on first-class luxuries.
Examples of the spending include:
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£77,350 on a Harvard Business School course for COO Michelle Ashford — including transatlantic flights and accommodation.
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£18,159 business-class return flights from New Zealand for WICS’ director of corporate and international affairs — and her spouse.
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£170 for a designer Mulberry wallet and £290 for luxury sunglasses, both claimed by Mr Sutherland.
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£2,600 spent on £100 gift cards for all staff at Christmas.
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£996 worth of alcohol across just nine meals, part of an unusual internal policy allowing booze to be expensed.
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£105,000 spent on Sutherland’s eventual departure from the organisation, including £14,000 for unused holiday leave.
The full scope of the scandal only came to light through investigations by Audit Scotland and the consultancy Ernst & Young. The most galling detail? Some of these expenses were only approved after the fact — a direct violation of Scottish Government policies requiring pre-approval for any spending above £20,000.
‘Extraordinary’ Evidence, Says Committee Chair
Labour MSP and committee convener Richard Leonard led the charge during the investigation and didn’t hold back in his criticism.
“Some of the evidence we have heard… was simply extraordinary,” Leonard said. “That the body charged with promoting long-term value from Scottish Water to its customers itself failed to live up to the standards required of a public body left the committee with deep concerns.”
But Leonard went further, pointing the finger squarely at the Scottish Government for failing in its duty to provide oversight.
“This failure from those who are meant to be safeguarding the public purse is simply unacceptable,” he added.
His remarks reflect growing frustration across the political spectrum — not just with WICS, but with how ministers allowed such practices to go unchallenged for years.
Leadership Exodus, But No Real Accountability Yet
The scandal has already claimed two high-profile exits. Mr Sutherland, who led the organisation for nearly two decades, resigned quietly following the first auditor general’s report in 2023. WICS chair Donald MacRae stepped down several months later after a strongly worded letter from Net Zero and Energy Secretary Mairi McAllan criticised how Sutherland’s departure was handled.
But critics say the resignations, and even the £105,000 paid to Sutherland on exit, fail to deliver real accountability — particularly as questions remain about how these spending patterns persisted for so long.
Timeline of Key Events
| Date | Event |
|---|---|
| 2023 | Auditor General Stephen Boyle publishes first report into WICS’ governance failures |
| Oct 2023 | Chairman Donald MacRae resigns |
| Dec 2024 | It emerges WICS spent £105,000 on Sutherland’s exit |
| May 2025 | Public Audit Committee publishes report, slams Scottish Government oversight |
Government Admits ‘Unacceptable’ Conduct — But Promises Change
The Scottish Government has responded to the report by acknowledging that past WICS expenditure was “completely and utterly unacceptable.”
A spokesperson said steps had been taken to improve management at the commission, though details remain vague. Civil service sources suggest internal reforms may include stricter financial controls, clearer ministerial reporting lines, and mandatory audit triggers for large expenses.
Still, critics note that government departments received regular updates from WICS over the years — and failed to act.
“This wasn’t one rogue director pushing the rules. It was a culture of entitlement that no one challenged,” one senior MSP told BBC Scotland off the record. “It’s clear the lines of oversight were blurred, or ignored altogether.”
A Public Body Out of Step With Public Expectations
The irony of the scandal hasn’t been lost on water consumers. Scottish Water — which WICS regulates — is currently urging residents to reduce water use amid fears of long-term scarcity and climate change impacts.
That plea is likely to ring hollow when the regulator itself was busy flying executives business-class halfway around the world.
As WICS now works to repair its reputation, public trust remains badly eroded. Transparency will be key — but many argue the damage has already been done.
One-sentence paragraph: Because in a cost-of-living crisis, stories of designer wallets, Harvard junkets, and wine-soaked dinners land like a slap in the face.
