The former chief executive of Scotland's water industry regulator had an expense claim for a £170 Mulberry wallet approved, auditors combing through the accounts of the public body have found.

Alan Sutherland also put glasses costing £290 on his expenses, among a number of "bulk" claims which appear to have been approved en masse without proper oversight.

Mr Sutherland stood down from the Water Industry Commission for Scotland (Wics) within hours of a damning Audit Scotland report being released last year, detailing lavish spending at the regulator.

As MSPs probed the regulator's finances further, it was later revealed he had claimed a £400 high-end restaurant meal on an office credit card, with the expense being paid despite failing to provide a receipt.

A senior manager at Wics also had an £80,000 Harvard Business School course paid for her, while others had MBA courses costing £70,000 paid for.

The Scottish Government has now carried out its own review of the spending and governance at Wics, which involved consultants conducting a line-by-line review of expenses.

Between October 2018 and June 2023, Mr Sutherland submitted 28 "bulk uploads" of expenses, they found, which ranged between £190 and more than £21,329.

While this practice is not in itself unusual, these were only approved by the Wics audit committee chair on 14 occasions.

A number of items were found to have "no clear business purpose", including the £170 Mulberry wallet and glasses worth £290 - despite the maximum for glasses being £130.

A high-value business class flight from New Zealand worth more than £18,000, for the director of corporate and international affairs and her spouse, was also expensed by the former chief executive.

The fact these expenses were paid shows there was a "poor control and governance environment", the review found.

It also noted there were wide-ranging values for how much could be claimed on working from home expenses - which allowed desks worth between £100 and £600.

Another review found the structure of Wics was "top heavy" and many staff felt they were not being listened to.

Aside from Mr Sutherland's resignation, it noted that much of the senior team from his tenure is still in place.

The organisation has 26 staff and had an income of about £5.3 million last year.

Wics officials have previously told MSPs the organisation is unusual in that around 20% of its income is from international consulting - saying there has been a change of culture.

Acting Net Zero Secretary Gillian Martin said: "These thorough reports illustrate the depth of the challenge in addressing the culture and ethos at Wics that had developed over a number of years.

"We place the utmost importance on the proper spending of public money and have made it very clear that the approach to expenditure highlighted here and in previous disclosures was simply unacceptable.

"The appointment of an interim chair of the Wics board provides a platform to ensure stability and make the required governance and cultural improvements.

"These reports will further inform the work of the board to reset the organisation and to ensure that Wics delivers best value and regains public confidence.

"We will continue to monitor progress on the action plan closely."
Conservative net zero spokesman Douglas Lumsden said: "This review must spell the end once and for all for the culture of eye-watering spending at this organisation.

"Some of its findings will appal hard-pressed taxpayers who will wonder why this was not curtailed far sooner.

"The SNP have a brass neck to say they place the utmost importance on public spending, given their gross financial incompetence during their 17 years in charge.

"Ministers must now ensure that the water industry commission clean up their act and that it delivers value for money for taxpayers."