Government knew of Harvard fees, water boss claims

Michelle Ashford says there was a "toxic culture" at the Water Industry Commission for Scotland

A senior executive at Scotland's water industry regulator has claimed a Scottish government official knew the public body was paying more than £77,000 for her to attend Harvard Business School.

Michelle Ashford, Water Industry Commission for Scotland (Wics) chief operating officer, told a Holyrood committee she notified the government she was being sent on a four-month course before it started in January last year.

A report by the auditor general published in December also revealed the public body spent £400 on a restaurant dinner and £2,600 on £100 gift cards for staff at Christmas.

The government said it would respond to Ms Ashford's claims shortly.

Scottish government director general for net zero Roy Brannen previously told the committee he first learned of the course at Harvard Business School in the US when the Audit Scotland report was compiled and he was asked to retrospectively approve the spending.

After the watchdog's report was released in December, then chief executive officer Alan Sutherland was forced to stand down.

In a letter to the committee this week, Ms Ashford claimed to have spoken to the government's deputy director of water policy, Jon Rathjen, and "many others" before the start of the course, which cost £77,350, including flights and accommodation.

She also claimed there was a "toxic" atmosphere at the public body and said she had been signed off with stress after the spending was made public. She is understood to have returned to work.

Harvard is one of the world's most prestigious universities

Ms Ashford said the sponsor team at the Scottish government was aware she was participating in the Harvard course.

"I lead the wastewater workstream, so advising them that I would be out of the country in February and April 2023 was essential," she told the committee.

Ms Ashford said that while Mr Sutherland may not have "formally requested" approval for her to attend the course, it was "not a secret". "In fact, I actively discussed it with as many people as possible," she said.

The chief operating officer said she had to complete a "360 review" process to enrol on the course.

"I approached a number of colleagues both internal and external to Wics to contribute to my 360-degree assessment," she said.

"Along with many others, Jon Rathjen was one of those that I approached and who accepted."

'Toxic culture'

Ms Ashford claimed Mr Sutherland "insisted" she focus on universities in North America as opposed to cheaper courses in Oxford and Edinburgh she had proposed.

She said they agreed Harvard's course was the most "appropriate" and submitted an estimate of expenses to Mr Sutherland in April 2022.

Ms Ashford said that under the former chief executive's leadership there was a "toxic environment that caused staff to create dysfunctional coping mechanisms in order to survive".

She claimed staff were reluctant to challenge Mr Sutherland due to fears of potential repercussions and that a change in culture was required.

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

A spokesperson for the public body said: “Considerable progress has been made to address the governance issues of the past, and we are fully committed to embedding meaningful change within the organisation.”

Public Audit Committee convener Richard Leonard has written to Mr Brannen to seek clarity on Ms Ashford's claims.

A Scottish government spokesperson said it had received the committee's letter and would respond “shortly”.