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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 13 September 2025
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Displaying 1631 contributions

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Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

Does all that not paint a picture of there being wider issues? There are two, in particular. One is the board’s oversight of what was going on at WICS at an operational level. The other is the breakdown in the relationship between the sponsoring division of the Scottish Government and the board itself. I will ask each of you to comment on those.

I will come to Mr MacRae first. Given the content of the section 22 report, including numerous references to matters such as patterns of culture and behaviour, which clearly did not happen overnight but had developed over a period of time, how did it come to this? How did we get to a scenario where we needed a section 22 report, the involvement of external auditors and the resignation of a CEO for things to change? What on earth was the board doing for all those years?

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

Talk me through what happened next. The options were debated, and I understand that the option that was chosen was a settlement agreement. Is that correct?

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

It states here, in an email from you to Mr Satti, who is sitting to your right, that

“the CEO tendered his resignation in December following the pending Section 22 report”.

Was there a causal link between the section 22 report and his resignation?

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

I am happy to correct the record—I was referring not to the former CEO but to the current COO.

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

The former CEO resigned as a result of that report. That is what it says in an email from Mr MacRae to you, Mr Satti, on Wednesday 20 March. It states:

“David,

As you are aware, the CEO tendered his resignation in December following the pending Section 22 report from the Auditor General.”

Your view is that the section 22 report was the trigger for his resignation.

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

You made the link, though. Why is that?

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

What options did the board consider, other than accepting his resignation?

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

Yes, but you could summarise the options that were open to you, so that we can get to how you came to the decision that you made.

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

I am sorry, but I will stop you there for a second, because there is a lot in this. Did the Scottish Government approve the business case or not?

Public Audit Committee

Section 22 Report: “The 2022/23 Audit of the Water Industry Commission for Scotland”

Meeting date: 19 September 2024

Jamie Greene

So the section 22 report was the trigger for you to have concerns about culture and behaviour at WICS. Did nothing that happened before that raise any red flags?