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A public body that spent more than £77,000 to send a senior executive to take a course at Harvard University in the US has defended the decision, by telling MSPs it invests in its staff to stop them from being “poached”.

The Water Industry Commission for Scotland (WICS) – which regulates Scottish Water – was accused of “poor governance” with public funds in a report by the Auditor General last year, and today faced scrutiny at Holyrood.

Its representatives insisted the culture had changed at the regulator, as they struggled to justify questionable spending highlighted in last year’s audit – including £2,600 to provide every staff member with a £100 gift card for Christmas and £402 on a dinner for two.

The report by the Auditor General found that the “financial management and governance issues found at the commission fall far short of what is expected of a public body”.

After the report, WICS chief executive Alan Sutherland quit with immediate effect in December and was awarded six months’ pay in lieu of his contractual notice period. While an exact figure for this was not provided, in 2021 the commission said the chief executive officer’s annual salary was more than £165,000.

A total of £77,350 was claimed for the Harvard Business School course attended by chief operating officer Michelle Ashford, which included business class flights to Boston.

Approval was only sought afterwards for the expenses, despite Scottish government approval being required in advance for any service above £20,000.

‘We find it difficult to compete with private sector’

Holyrood’s public audit committee criticised the money spent on the Harvard course during its meeting on Thursday.

MSP Jamie Greene questioned whether the organisation had been “running like a private sector business instead of a public sector body”.

Professor Donald MacRae, chair of the board at WICS, said the board should have been asked for approval first and accepted that the value for money for the Harvard course was “not fully demonstrated and the business case was inadequate”.

However, he explained: “WICS is a small public body operating in a very complex and specialised area, and we do find it difficult to compete on salaries with the private sector and actually to retain staff.

“And our staff are frequently subject to approaches to being poached, actually.

“Now, we recognise that our staff are our most important asset, and we take the view that we have to invest in them. And we have to invest in them by offering advanced management training.”

Pic: Scottish Parliament TV
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Professor Donald MacRae, chair of the board at WICS. Pic: Scottish Parliament TV

Despite Professor MacRae’s argument about retaining staff, the committee also heard no conditions were put in place ito ensure Ms Ashford stayed with WICS for a certain period of time after attending the course in the US.

Going forward, Professor MacRae said WICS will “still adhere to the policy of investing” in its staff.

But he added the organisation will look for alternative training “within Scotland or the UK at much lower cost” in the future, to deliver “better value for money”.

Richard Leonard MSP, committee convener, accused Jon Rathjen, deputy director for water policy at the Scottish government, of being “complicit” in the failures at WICS, in that he did not challenge the spending on the Harvard course.

Pic: Scottish Parliament TV
Image:
Richard Leonard MSP. Pic: Scottish Parliament TV

Mr Rathjen accepted he “made an error of judgement” in relying on an assurance from the WICS chief executive.

He said WICS had approached the Scottish government to approve the spending retrospectively and refusing it would not have achieved anything.

Pic: Scottish Parliament TV
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Jon Rathjen, deputy director for water policy at the Scottish government. Pic: Scottish Parliament TV

‘Nice work if you can get it’

With regards to other spending at WICS, MSP Graham Simpson raised a £402.41 meal at the Champany Inn in Linlithgow, West Lothian, where then chief executive Mr Sutherland was dining with an official from the New Zealand government in October 2022.

David Satti, who has recently become the interim accountable officer at WICS, said no itemised receipt had been provided and the expense had been covered on an office credit card, adding: “We have no way of knowing the exact items that were purchased.”

Pic: Scottish Parliament TV
Image:
David Satti, interim accountable officer at WICS. Pic: Scottish Parliament TV

Professor MacRae said the meal had been wrongly coded as “subsistence” but nevertheless had been “instrumental” in securing income of £1.2m from New Zealand.

Mr Simpson was also told that WICS workers sent to New Zealand were allowed to book business class as the flight is over six hours.

The MSP sarcastically responded: “Nice work if you can get it.”

Colin Beattie MSP questioned whether it was “unusual” for a public body to give staff members Christmas vouchers.

Pic: Scottish Parliament TV
Image:
Colin Beattie MSP. Pic: Scottish Parliament TV

In regards to the £100 gift cards, which exceeded the £75 limit for gifts, Professor MacRae said: “You must remember the situation we were in, a situation where we were all operating remotely and still in the process of recovering from COVID.

“That was the background to the decision.”

It was heard that WICS has no intention to give out gift cards to staff members at Christmas in the future.

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At the start of the meeting, Professor MacRae said there had been a “change of culture and focus on value for money” since the Audit Scotland report.

But MSP Willie Coffey delivered a damning verdict on the spending at WICS, saying: “I’ve been a member of the parliament, in the audit committee on and off for 17 years, and I have to say to you colleagues that this is one of the worst sessions I’ve ever participated in.”

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WICS has a statutory duty to promote the interests of Scottish Water’s customers. It is funded via a levy on Scottish Water.

The organisation has 26 staff and had an income of about £5.3m last year.

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Binance co-founder Changpeng Zhao said that being considered for a presidential pardon from Trump would be “great news if true.”

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Fears Trump may lose focus after praise for Gaza peace deal at Egypt summit

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Britain has been playing a role behind the scenes of Trump's deal between Israel and Hamas | Beth Rigby

Sir Keir Starmer will on Monday join world leaders at a historic summit in Egypt to witness the signing of the Gaza peace plan to end two years of conflict, bloodshed and suffering, that has cost tens of thousands of lives and turned Gaza into a wasteland.

Travelling over to Egypt, flanked by his national security advisor Jonathan Powell, the prime minister told me it was a “massive moment” and one that is genuinely historic.

US President Donald Trump moved decisively last week to end this bloody war, pushing Israeli Prime Minister Benjamin Netanyahu and Hamas into a ceasefire as part of his 20-point peace plan.

Pic: AP
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Pic: AP

In the flurry of the following 48 hours, Mr Starmer and another twenty or so leaders were invited to Egypt to bear witness to the signing of this deal, with many of them deserving some credit for the effort they made to bring this deal around, not least the leaders of Qatar, Egypt and Turkey, who pressed Hamas to sign up to this deal.

On Monday, the remaining 20 living hostages are finally set to be released, along with the bodies of another 28 who were either killed or died in captivity, and aid is due to flow back into a starving Gaza.

Some 1,200 Israelis were killed on 7 October 2023, with another 250 taken hostage. In the subsequent war, most of Gaza’s two million population has been displaced. More than 67,000 Gazans have been killed, according to Palestinian health officials

Then, the signing ceremony is due to take place on Monday afternoon in Sharm el-Sheikh. It will be a momentous moment after a long and bloody war.

More on Israel-hamas War

But it is only just the beginning of a long process to rebuild Gaza and try to secure a lasting peace in the region.

The immediate focus for the UK and other nations will be to get aid into Gaza with the UK committing £20m on Monday for water, sanitation and hygiene services for Gazans.

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Humanitarian aid rolls into Gaza

But the bigger focus for the UK and other European allies is what happens after the hostages are released and Israel withdraws its troops.

Because what happens next is a much bigger and more complicated task: rebuilding Gaza; turning it into a terrorist-free zone; governing Gaza – the current plan is for a temporary apolitical committee; creating an international stabilisation force and all the tensions that could bring about – which troops each side would allow in; a commitment for Israel not to occupy or annex Gaza, even as Netanyahu makes plain his opposition to that plan.

The scale of the challenge is matched by the scale of devastation caused by this brutal war.

The prime minister will tomorrow set out his ambition for the UK to play a leading role in the next phase of the peace plan.

Back home the UK is hosting a three-day conference on Gaza’s recovery and reconstruction.

Last week, France hosted European diplomats and key figures from Middle Eastern countries, Egypt, Jordan, Saudi Arabia and Qatar and later this week, the German chancellor is hoping to organise a conference on the reconstruction of Gaza with the Egyptians.

But in reality, European leaders know the key to phase two remains the key to phase one: and that’s Donald Trump.

As one UK figure put it to me over the weekend: “There is lots of praise, rightly, for the US president, who got this over the line, but the big challenge for us post-war is implementing the plan. Clearly, Arab partners are concerned the US will lose focus”.

The prime minister knows this and has made a point, at every point, to praise Mr Trump.

Bridget Phillipson and Mike Huckabee. Pics: Sky/AP
Image:
Bridget Phillipson and Mike Huckabee. Pics: Sky/AP

His cabinet minister Bridget Phillipson learned that diplomatic lesson the hard way on Sunday when she was publicly lambasted by the US ambassador to Israel Mike Huckabee for suggesting to my colleague Trevor Phillips that the UK “had played a key role behind the scenes” and failed to mention Mr Trump by name.

“I assure you she is delusional,” tweeted Governor Huckabee. “She can thank @realDonaldTrump anytime just to set the record straight”.

On Monday, leaders will rightly be praising Mr Trump for securing the breakthrough to stop the fighting and get the remaining hostages home.

People hug next in Hostages Square. Pic: Reuters
Image:
People hug next in Hostages Square. Pic: Reuters

But this is only the beginning of a very long journey ahead to push through the rest of the 19-point plan and stop the region from falling back into conflict.

Britain has, I am told, been playing a role behind the scenes. The PM’s national security adviser Mr Powell was in Egypt last week and has been in daily touch with his US counterpart Steve Witkoff, according to government sources. Next week the King of Jordan will come to the UK.

Part of the UK’s task will be to get more involved, with the government and European partners keen to get further European representation on Trump’s temporary governance committee for Gaza, which Tony Blair (who was not recommended or endorsed by the UK) is on and Mr Trump will chair.

The committee will include other heads of states and members, including qualified Palestinians and international experts.

As for the former prime minister’s involvement, there hasn’t been an overt ringing endorsement from the UK government.

It’s helpful to have Mr Blair at the table because he can communicate back to the current government, but equally, as one diplomatic source put it to me: “While a lot of people in the Middle East acknowledge his experience, expertise and contact book, they don’t like him and we need – sooner rather than later – other names included that Gulf partners can get behind.”

On Monday it will be the US, Egypt, Qatar and Turkey that sign off on the peace plan they directly negotiated, as other Middle Eastern and European leaders, who have flown into Sharm el-Sheikh to bear witness, look on.

But in the coming days and weeks, there will need to be a big international effort, led by Mr Trump, not just to secure the peace, but to keep it.

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