Government official knew about Harvard course spending

A senior executive at Scotland’s scandal-hit water industry regulator has claimed a Scottish Government official knew the firm was funding a £77,350 Harvard course for her.

The spending was discovered along with other lavish payments – including a £400 restaurant dinner and £100 gift cards for staff as Christmas presents – by Audit Scotland.

After the watchdog’s report was released in December, then Water Industry Commission for Scotland (WICS) chief executive officer Alan Sutherland was forced to stand down.

In a letter released on Monday, but sent last month to the Public Audit Committee, the firm’s chief operating officer Michelle Ashford said the Scottish Government had been made aware of the Harvard Business School (HBS) course she had been sent on, which included flights and accommodation.

Emails she sent to interim chief executive David Sattie, board members Robin McGill and David MacRae, and an official at Audit Scotland, laid out the circumstances of the course, including a “360-degree review” where she claims to have spoken to the government’s deputy director of water policy Jon Rathjen before the course started.

“The sponsor team at Scottish Government were aware that I was participating in the HBS programme,” she wrote. “I have been involved in the policy development work with SG since the middle of 2022.

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

“As part of the programme, I had to complete a 360-degree review, I approached a number of colleagues both internal and external to WICS to contribute to my 360-degree assessment.

“Along with many others, Jon Rathjen [deputy director of water policy at the Scottish Government] was one of those that I approached and who accepted.

“Whilst Alan may not have formally requested approval from SG for the programme, it was not a secret and, in fact, I actively discussed it with as many people as possible.”

During an appearance before the Public Audit Committee earlier this year, Scottish Government director general for net zero Roy Brannen said the first he had known about it was when the Audit Scotland report was compiled and he was asked to retrospectively approve the spending.

It appears Sutherland told Rathjen about the spending in an email on 2 November, after Audit Scotland had raised the issue with him.

Public Audit Committee convener Richard Leonard has written to Brannen to seek clarity on the matter.

The decision to go on the course was prompted by Sutherland, Ashford claimed, who pushed her to look at schools in North America, as opposed to courses in Oxford and London she had planned on.

This is despite the 2 November email to Rathjen claiming Ashford “sought approval to attend a Harvard Business School advanced management programme (HBS AMP)” which he said was her “preferred option”.

“Alan insisted that I focus on schools in North America, suggesting Harvard, Yale and Stanford, as he considered these to be much more appropriate for my development,” Ashford wrote.

“I researched the programmes on offer at these institutions and discussed these at length with Alan in the spring of 2022.

“We agreed that the HBS AMP was the most appropriate, I prepared an approval form (including an estimate of expenses) and submitted this to Alan for approval in April 2022.”

Ashford also hit out at the “toxic” atmosphere within WICS and claimed she had been signed off with stress following the spending being made public.

“In my personal opinion, the previous leadership was a toxic environment that caused staff to create dysfunctional coping mechanisms in order to survive,” she wrote. “It is also my view that staff were reluctant to challenge the CEO through fear of the potential repercussions.

“A change in culture is required and this cannot be done through revising policies and procedures alone.

“The staff in WICS have been existing in that environment for so long that they are not really aware of the coping mechanisms and attitudes they have adopted to survive.

“Although the CEO has left, his legacy will extend for some time to come.”

Ashford also eluded to her being allowed to go on the course being used to “effectively manage me out of the business” by the former CEO.

A Scottish Government spokesperson said: “The Scottish Government has received the committee’s letter and will be responding shortly.”

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