Former Water Watchdog Head Expensed £170 Wallet, Review Shows

Alan Sutherland, the previous head of Scotland’s water industry regulator, submitted expense claims for a Mulberry wallet valued at £170 and glasses costing £290, items that were deemed to “had no clear business purpose”. Additionally, Mr. Sutherland authorized business class airfare exceeding £18,000 for a director and her partner to travel to New Zealand. These details regarding the former chief executive’s expense claims emerged from a review of spending at the Water Industry Commission for Scotland (Wics), which was commissioned by the Scottish government. Mr. Sutherland resigned from his position at the regulatory body last year, shortly after a distinct Audit Scotland report highlighted extensive spending within the public organization. The preceding Audit Scotland report had disclosed that an £80,000 Harvard Business School course was funded for a senior manager at Wics, and other individuals undertook MBA courses priced at £70,000. This led the Scottish government to request an additional review of Wics’ spending and governance, involving consultants Ernst & Young meticulously examining each expense claim. Ernst & Young discovered that from October 2018 to June 2023, Mr. Sutherland filed 28 “bulk uploads” of expenses, with amounts varying from £190 to over £21,329. Furthermore, he approved a business class flight originating from New Zealand, costing over £18,159, for the director of corporate and international affairs and her spouse. The review document stated: “While we understand from interviews that both were living in New Zealand at the time, it is not usual practice to expense business class travel for spouses and we cannot see evidence that appropriateness and value for money were considered before this was incurred.” Several items, including the £170 wallet and £290 glasses, were identified as having “no clear business purpose”. The review determined that the payment of these expenses indicated a “poor control and governance environment”. It further observed a broad spectrum in the amounts permissible for working from home expenses, which permitted desks ranging in value from £100 to £600. A separate review identified Wics’ organizational structure as “top heavy,” with numerous staff members feeling unheard. Beyond Mr. Sutherland’s departure, the report pointed out that a significant portion of the senior leadership from his period remains employed. The organization employs 26 individuals and reported an income of approximately £5.3 million in the previous year. Officials from Wics have previously informed MSPs that Wics is distinctive because approximately 20% of its revenue originates from international consulting. Acting Net Zero Secretary Gillian Martin commented: “These thorough reports illustrate the depth of the challenge in addressing the culture and ethos at Wics that had developed over a number of years.” She added: “We place the utmost importance on the proper spending of public money and have made it very clear that the approach to expenditure highlighted here and in previous disclosures was simply unacceptable.” She announced the appointment of an interim chairperson, stating, “We will continue to monitor progress on the action plan closely.” Douglas Lumsden, Conservative net zero spokesman, remarked: “This review must spell the end once and for all for the culture of eye-watering spending at this organisation.” He further stated: “Some of its findings will appall hard-pressed taxpayers who will wonder why this was not curtailed far sooner.”