The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 3918 contributions
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
Thank you. That exhausts our questions for this morning, but I want to take the opportunity to thank you very much for the evidence that you have given us and for being prepared to talk about the Historic Environment Scotland report, which is only just hot off the press. That has been useful, but we will return to it, I am quite sure, in the future.
For the time being, Carole Grant, Richard Smith and Stephen Boyle, Auditor General, I thank you for your evidence this morning, and I take the opportunity on behalf of the committee to wish you a happy Christmas and a peaceful new year.
11:24 Meeting continued in private until 12:15.Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
I say this without getting us into policy areas, but Parliament will consider legislation that is about raising a levy to pay for cladding remediation. What you are saying is that, at the same time as Parliament is considering that, you are reporting to Parliament a significant underspend, including an underspend of funds that have been set aside to carry out some of that work.
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
Okay, but people such as me and Mr Simpson have a longstanding question that we have raised about the fact that there were Barnett consequentials from action taken after the Grenfell tower disaster, which were given to the Scottish Government and did not appear to have been spent. You are reporting today that that continues to be an outstanding area of underspend, at a time when people have many concerns, especially those who live in buildings where cladding remediation is required.
I will move on to social security. Once again, there is a qualification in the audit about social security spending. Can you explain why that is? Do you expect that to continue, and if so, for how long?
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
Okay. The deputy convener, who I will turn to next, has some questions on one of those projects.
My final question for now is about risk management. In paragraph 69, you say:
“Risk management is key to the Scottish Government’s assurance arrangements.”
What evidence have you seen that this is being applied to the relationship with the GFG Alliance?
As we have previously noted, the GFG Alliance is facing litigation because it has failed to lodge accounts with Companies House, including, I think, for Alvance British Aluminium, based at Lochaber. It is facing investigation over suspected fraud, fraudulent trading and money laundering by the Serious Fraud Office. Its auditors, King and King Chartered Accountants, resigned in 2022 following their concerns about the business. Only last week, MHA, which is part of Baker Tilly International, also resigned as auditors from part of the GFG Alliance’s subsidiary arrangements because they, too, were concerned about some intercompany interactions.
In other words, this company is riddled with question marks over its conduct and is facing litigation and investigation. Do you think that the Scottish Government has properly managed the risks and has it understood the implications of its relationship with the GFG Alliance?
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
Okay. My final question is: as the Auditor General, what is your view of a company that does not have auditors and has not filed accounts with Companies House?
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
Thank you very much. I now invite Colin Beattie to put some questions.
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
In the full consolidated accounts that the Government produced earlier in the year, which this report is an audit of, the section on the sponsorship of public bodies spoke about deep dives following concerns raised about the Water Industry Commission for Scotland. The deep dives made a risk assessment of public bodies and identified nine that were rated as red. Six of those were NHS boards, I think—I do not know whether they were all territorial boards—that were already under special escalated measures. Of the other three, one was WICS. Do you know which the other two organisations were?
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
We will get to it when we take evidence on Historic Environment Scotland, but I suppose that the timeline is interesting. At what point was Historic Environment Scotland identified as a red risk, and how long was it before action was taken? I invite Graham Simpson to put some questions to you.
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
Thank you, Mr Simpson. I now invite Joe FitzPatrick to put some final questions to you, Auditor General.
Public Audit Committee
Meeting date: 17 December 2025
Richard Leonard
Good morning. I welcome everyone to the 34th and final meeting in 2025 of the Public Audit Committee.
Under the first agenda item, do committee members agree to take agenda items 3 and 4 in private?
Members indicated agreement.