Chair of Scotland’s water industry regulator resigns after financial scandal

WICS, which is Scotland’s water industry regulator, were quizzed by MSPs last month over the failings with MacRae saying he was ‘surprised’ by the Harvard bill because it hadn’t gone in front of the board.

The regulator was also criticised by MSPs after it emerged that Alan Sutherland, who had quit as chief executive following the auditors report being published last December and had racked up £130,000 in expenses since 2019, had been given a six-month pay off.

MacRae admitted that “WICS needs to accept the need for a greater focus on value for money and the need to operate to the highest standard of financial management”.

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He has now resigned from the role with Gillian Martin MSP, Acting Cabinet Secretary for Net Zero and Energy, confirming that the resignation had been accepted and believes it can allow the organisation to have a reset.

She said: “I welcome the opportunity this provides to continue to reset oversight of the Water Industry Commission Scotland in light of the unacceptable financial and governance issues that have arisen in the organisation.

“We are now taking immediate steps to ensure that a new Chair is appointed as quickly as possible.

“Once a new Chair is confirmed, we will be clear with them and the Board that they need to continue to work hard to deliver the changes required to reset the organisation so it delivers to the high standards I expect of a public body.”

Public spending watchdog Audit Scotland had been critical of WICS over failing to seek Scottish Government approval for spending in advance.

Spending included a 13-day Transatlantic executive development programme course costing £20,404 as well as £84,620 spent on an executive Master of Business Administration course over two years for a head of retail which included time spent in London and a five-day assignment in Argentina with travel and accommodation costing £10,856.

A similar two year course for another senior manager from January, 2017, involving an assignment in Argentina cost £72,795 including £11,713 travel and accommodation expenses.

And some £87,769 was spent on 40 days of executive coaching for the senior management and executive team over five years at the Stirling office.