SCOTLAND’S water watchdog has been accused of “unacceptable” use of public money after spending £2600 on Christmas vouchers.

The Water Industry Commission for Scotland also spent £77,350 for the chief operating officer to attend a training course at Harvard Business School, Audit Scotland found.

The commission is tasked with regulating the state-owned water company Scottish Water.

Booze was also found to have been expensed to the commission’s account and each of the organisation’s 26 members of staff were given £100 Christmas vouchers, Audit Scotland said.

Expenses claims exceeding set rates were also found to have been submitted and approved without itemised receipts, including by the commission’s chief executive.

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One claim was for a dinner where the cost per head exceeded £200 per person.

Auditor General Stephen Boyle said: “Value for money should always be central to public bodies’ spending decisions.

“But these findings highlight unacceptable behaviour by senior commission officials in the use of public funds.  

“I expect appropriate action to be taken to address the issues reported by the auditor.”

A spokesperson for the Water Industry Commission for Scotland, which is a non-departmental public body of the Scottish Government, said: "We acknowledge and accept the Auditor General for Scotland’s section 22 report on our annual report and accounts for 2022/23 and the issues highlighted in the report. 

"We take the Auditor General’s findings seriously and will work with Audit Scotland and the Scottish Government to address these.

"This is a priority for the organisation. We are in the process of putting robust and thorough policies and procedures in place and will implement these in conjunction with Audit Scotland and the Scottish Government.”