The former chief executive of Scotland’s water regulator received six months’ pay after it was deemed lavish spending at the body did not represent “gross misconduct”, MSPs have been told.

That's despite the Water Industry Commission for Scotland insisting there has now been a change in culture at the organisation since Alan Sutherland's resignation in December last year. 

Ministers conducting a review into Scotland’s water industry regulator quizzed the board over training spend worth over half a million along with trips to places such as America and Argentina.

The committee took evidence from Michelle Quinn, the Interim Director-General Net Zero, Kersti Berge, Director of Energy & Climate Change, and Catherine Williams, Interim Director of Water Policy for the Scottish Government as well as David Satti, interim Chief Executive, Donald MacRae, chair of the board, and Robin McGill, Chair of the Audit and Risk Committee for Water Industry Commission for Scotland (WICS).

Public spending watchdog Audit Scotland had been critical over failing to seek Scottish Government approval for spending in advance.

Former chief executive Mr Sutherland resigned hours after the report was published.

Spending included a 13-day Transatlantic executive development programme course costing £20,404 as well as £84,620 spent on an executive Master of Business Administration course over two years for a head of retail which included time spent in London and a five-day assignment in Argentina with travel and accommodation costing £10,856.

A similar two year course for another senior manager from January, 2017, involving an assignment in Argentina cost £72,795 including £11,713 travel and accommodation expenses.

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And some £87,769 was spent on 40 days of executive coaching for the senior management and executive team over five years at the Stirling office.

They were quizzed by MSPs Richard Leonard, James Dornan, Jamie Greene, Graham Simpson and Colin Beattie about these costs.

An opening statement from Mr Macrae admitted that “WICS needs to accept the need for a greater focus on value for money and the need to operate to the highest standard of financial management".

He later stated that they were trying to instil a change in culture but their costs were criticised throughout the two hour long committee meeting.

Mr Simpson MSP was particularly scathing as he branded social media training ‘laughable and rubbish’ as he criticised their output on X (formerly Twitter), Facebook and LinkedIn despite spending a hefty amount on a course.

Their use of corporate credit cards for flights was criticised although Mr Satti did confirm that they were no longer in use apart from one kept for IT purchases.

Prior to that, it had been used to book flights to Rwanda and Brazil.

The WICS board was keen to reiterate throughout the questioning that they had been changing their culture as well as their protocol for how expenses are dealt with.

But Mr Macrae said: "There was no gross misconduct.

“You could have dismissal without gross misconduct, but that would have meant payment of 12 months’ salary, which would have been considerably more than what we actually agreed, so that’s why that option, in value for money terms, was twice as expensive as the one that we chose.”

Mr MacRae insisted a previous senior Scottish Government official had cleared the payment, claiming he said “we can do this” in a phone call.

But acting Net Zero Secretary Gillian Martin told MSPs in the Holyrood chamber later on Wednesday that the Scottish Government was only made aware of the payment on January 12 – weeks after Mr Sutherland had stepped down.

The interim director-general for net zero in the Scottish Government, Michelle Quinn, speaking in the same committee hearing, added that Wics had sought “retrospective” agreement for the payment to Ms Sutherland.

But Mr MacRae said “we, and I, followed the process”, adding: “I believe that we acted in the best interests of everybody and achieved a result which proved best value for money and have evidence that we received approval from the deputy director on December 19 and 20.”

The Scottish Government is currently undertaking a review of Wics, but has not announced a date for the report to be released.

A further part of the hearing was then head in private with Stephen Boyle, Auditor General for Scotland, Carole Grant, Audit Director, Richard Smith, Senior Audit Manager, and Lauryn Graham, Senior Auditor, Audit Scotland all providing evidence to the committee.