THERE have been “unacceptable weaknesses” in the leadership of Scotland’s top heritage agency, a damning new Audit Scotland report has concluded.
Historic Environment Scotland (HES) – which oversees more than 300 of Scotland's top cultural sites including Edinburgh Castle – has endured months of media reports of scandals and mismanagement at its top, including The National revealing that one of its senior directors had been allowed to stay in post despite a complaint about racist comments against him being upheld.
In response to “weaknesses in governance and financial management” at the agency, a Section 22 report into HES – named because it is conducted under Section 22 of the Public Finance and Accountability (Scotland) Act 2000 – was announced by Stephen Boyle, the auditor general for Scotland, on October 27.
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That same day, papers for Holyrood’s Culture Committee were made public and revealed that five separate dossiers – each named “HES Corruption Volume [number]” – had been sent to Scottish ministers, the HES board, and Audit Scotland between July and September 2025.
In June, a separate sixth dossier alleging "financial/procurement improprieties involving HES director” had also been circulated to the body’s sponsorship team.
Key concerns also centred on HES chief executive Katerina Brown, who had been on extended leave for an undisclosed reason. Her absence meant the body had no accountable officer – the person responsible for answering on its actions to Parliament.
Now, in the damning Section 22 report, the auditor general for Scotland has found “unacceptable weaknesses in the leadership, governance and use of resources within Historic Environment Scotland”.
He goes on to say that the “organisation is not able to demonstrate that arrangements are in place to deliver best value across all of its activities”.
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“Further, the Scottish Government should have appointed a substitute accountable officer when the extended absence of the chief executive and accountable officer became clear. This would have provided leadership and the necessary accountability within Historic Environment Scotland.”
The report reveals that Brown was absent from work from May 2, 2025 until October 20, 2025.
Boyle adds: “Historic Environment Scotland must also investigate and address the allegations of a toxic workplace culture, and resolve ongoing staff-related concerns. I will continue to monitor progress on these matters and I will report further in public as necessary.”
Elsewhere, the report also warns it is "critical that strong controls are in place to prevent the risk of fraud".
HES chair Mark Jones said: “We acknowledge the serious governance issues and cultural problems identified in the Section 22 report, and the impact of recent leadership instability.
"We are committed to rebuilding trust through strong governance, clear processes, and a culture of accountability.”
On Tuesday, HES also published its annual accounts, one day after Stephen Uphill took up his appointment as interim chief operating officer on December 15.
During 2024/25, HES employed just over 1600 permanent staff and incurred expenditure of £142.3 million.
It received total income of £144.6m during the year, comprised of £69.3m of government grants, £53.1m from charitable activities, and £22.2m from trading, donations and legacies and other income.
HES was reported to have generated £935m for Scotland’s economy from heritage tourism, up from £887m in 2023–24.
The body is ultimately the responsibility of Culture Secretary Angus Robertson, who previously faced criticism after documents revealed he had failed to meet with the HES board while the trouble at the agency was ongoing.
A Scottish Government spokesperson said: "We are aware of issues that have been raised and we are working closely with the organisation to resolve these.
“Following his appointment by the Culture Secretary, Sir Mark Jones’s priorities as chair are to ensure HES has the trust of the public and its partners.”
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