Whistleblowers warn Historic Environment Scotland is 'at risk of collapse'
Frustrated whistleblowers at under-fire Historic Environment Scotland have said the organisation is at “risk of collapse” following a damning watchdog report.
Frustrated whistleblowers at an under-fire heritage quango have said the organisation is at “risk of collapse” following a damning watchdog report.
Scotland’s Auditor General released the findings of a probe into Historic Environment Scotland describing “unacceptable weaknesses”.
Stephen Boyle laid out a laundry list of issues with the Scottish Government-adjacent body - including a raft of issues exclusively revealed by The Scotsman.
In light of the report, MSP Stephen Kerr requested an urgent question to be asked at Holyrood but his bid was rejected.
Mr Kerr expressed fury at the decision, saying the parliament is “failing to hold power to account”.
The Auditor General’s report is scathing of the long-running issues at HES and criticised the Scottish Government for its failures to act.
Mr Boyle said change is now “critical”.
He found the quango had issues with procurement, data breaches, problems with complimentary tickets to events and no formal register of interests for its leadership team in an annual audit.
His report follows revelations in The Scotsman of an internal sexual harassment row, inappropriate behaviour of a director at corporate events, procurement concerns amid other issues.
The body is also dealing with an internal racism row and the sudden departure of its chair before the suspension of its chief executive.
The Scotsman exclusively revealed the reasons for the departure of Hugh Hall and then Katerina Brown’s suspension.
Ms Brown is now back at work.
HES said an independent review of its structure, efficiency and culture will be set up in the new year in order to ensure failings are rectified.
Mr Boyle said HES is “navigating a period of significant instability and challenge, with a number of staff-related matters that need to be resolved”.
“This includes allegations of a toxic workplace culture which needs to be fully investigated and addressed,” he added.
“My report outlines unacceptable weaknesses in HES’s governance arrangements.
“It is critical that strong controls are now put in place to prevent the risk of fraud and demonstrate that value for money is being achieved.”
The Section 22 audit of HES said it must put strong controls in place to prevent fraud and ensure value for money after unacceptable weaknesses were found in its governance.
An HES insider and whistleblower, said: “The Section 22 report makes it clear for everyone to see.
“Historic Environment Scotland is out of control and is in danger of collapsing.
“The problems date back years but have been covered up and buried time and time again.
“It is not fit for purpose and there must be real and meaningful change and it must be immediate.”
The insider said the Auditor’s report must prompt swift action.
They added: “It is now time for a clearout of the entire organisation.
“The Board have presided over this mess for years.
“To read that that organisational policies are not consistently applied or followed tells you everything you need to know about our Senior Leadership Team.
“There is a real lack of understanding as to what is right and wrong. They just do their own thing.
“Those who have been shining a light on this in Parliament and in the media will feel somewhat vindicated but the truth of the matter is we have been let down badly by our Board and senior leaders and the Scottish Government.
“There must be a full independent review of the entire organisation and there must be a clear out at the top.”
The audit of HES’s 2024/25 accounts reported weaknesses in governance arrangements and listed a raft of issues - all highlighted in The Scotsman in recent months.
These include procurement issues, data breaches, unclear processes for complimentary tickets to events at its venues, and no formal register of interests for the Executive Leadership Team.
Auditors reported weaknesses in the financial management of electronic purchasing cards and hospitality.
HES currently has 400 credit cards in use for 1600 staff members - a ratio of one card between four.
The Auditor General’s report adds that, together, these issues suggest a culture where organisational policies are not consistently applied or followed.
READ MORE: Historic Environment Scotland: New chairman addresses staff at troubled quango for first time
HES operated without a Chief Executive or Accountable Officer for almost six months in 2025.
Mr Boyle’s report said the Scottish Government should have appointed a substitute Accountable Officer to provide the necessary leadership and accountability in accordance with ministerial guidelines.
Conservative MSP Mr Kerr has been pushing the Scottish Government and culture secretary Angus Robertson to take meaningful steps to tackle ongoing crises at HES.
He expressed frustration that his urgent question request had been refused.
“What is the point of this Parliament if it will not even permit an urgent question on a report by the Auditor General exposing serious and systemic failures in a national public body?,” Mr Kerr said.
“This was not a marginal issue, a technical quibble, or a matter of ancient history.
“It was a live audit, dealing with current leadership failures, millions of pounds of public money, and the basic absence of an Accountable Officer for months on end.
“Yet when the moment came for Ministers to be questioned, the system closed ranks.
“Procedure was used as a shield, not a safeguard.
“That is not scrutiny - it is avoidance.”
The auditor also found that the HES board was not provided with a paper to scrutinise the cancellation of a specialist archive storage project, which has already cost £2.9 million, with a further £0.5 million likely to be spent.
The Scotsman recently approached HES with questions about the storage project, which is a core function of the organisation alongside managing sites such as Edinburgh Castle.
“The care and management of both, and the provision of public access, is a priority for the organisation and we are very much focused on this,” a spokeswoman said.
“The Archive House project was halted in June 2024 following an internal review and the agreement of the HES Board.
“We have secured an interim solution through a lease extension at John Sinclair House, removing the immediate risk of displacement and work has started to develop a sustainable long-term strategy for archive accommodation that ensures appropriate care, conservation and public access.”
Scottish Labour culture spokesman Neil Bibby MSP said: “The findings outlined in this report are serious and very concerning, raising further questions about HES that must be answered.
“Among these, we must know why SNP ministers failed to appoint a substitute Accountable Officer, when the organisation operated without someone in this role for almost six months.
“Angus Robertson should make it a priority to come before Parliament and explain why this situation arose, and why there was such apparent inaction by the Scottish Government to address the situation, despite the already public concerns about HES.”
A Scottish Government spokeswoman said ministers are aware of issues that have been raised.
She added: “Following his appointment by the Culture Secretary, Sir Mark Jones’ priorities as Chair are to ensure HES has the trust of the public and its partners.”
A spokesperson for Historic Environment Scotland (HES) said the organisation acknowledges the problems identified in the Section 22 report, and the impact of recent leadership instability.
She added: “We are committed to rebuilding trust through strong governance, clear processes, and a culture of accountability.
“We have strengthened internal controls and compliance monitoring and are updating relevant policies and procedures.”
A Scottish Parliament spokesperson said: “There is no question of an issue being blocked.
“Where a question has not been considered to meet the published criteria for urgent questions, Members have a range of scrutiny mechanisms available to them and are strongly encouraged to pursue them.
“While Audit Scotland reports are subject to detailed scrutiny by the Public Audit Committee, they can also be scrutinised by Members in a range of ways in the Chamber.”
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