'Mayday' issued at Historic Environment Scotland as inquiry launched over 'corruption' allegations

Auditor General Stephen Boyle is set to investigate “weaknesses in governance and financial arrangements” at the organisation and the impact of “leadership instability on culture and operation”.

HES chief executive Katerina Brown has returned to work after a four-month absence, first on sick leave and then suspension, to focus on the filing of the organisation’s annual reports and accounts, which Mr Boyle said had now missed the agreed deadline.

READ MORE: Chief Executive of Historic Environment Scotland suspended a year after taking up post

The move by the Auditor General to launch a Section 22 report into HES follows a deeply troubled spell at the quango, which has battled a stream of allegations surrounding workplace culture, misuse of hospitality and staff behaviour, with several HR investigations under way.

Two senior managers are suspended and a director recently apologised to staff for using racist language, but remains in the job.

READ MORE: Historic Environment Scotland ‘chose not to act on culture of fear’

Meanwhile, Scottish ministers and Audit Scotland have been made aware of five separate allegations of corruption at the organisation, the first which was made in June, and which are being investigated by the HES board.

Today, the embattled quango, which manages £70 million of Scottish Government funding and 300 historic sites, including Edinburgh Castle, was top of the agenda at Holyrood’s culture committee, where new HES chairman Sir Mark Jones and board member Andrew Davis appeared.

READ MORE: Historic Environment Scotland manager accused of ‘twerking’ actor Martin Compston at Edinburgh Castle event

Stephen Kerr, Conservative MSP for Central Scotland, who has been probing events at HES for several months, raised the announcement of the Audit Scotland ‘Section 22’ intervention.

He said: “The Section 22 report that the Auditor General has indicated he will issue is pretty much a mayday signal from him in terms of the current status of Historic Environment Scotland.

“Effectively, what the Auditor General is saying is that this public body is broken and Parliament and Government must now act.”

Sir Mark, following questioning from Mr Kerr, said he welcomed the Section 22 process and its areas of focus.

The HES chair said: “They are the right areas of study and I am sure we are going to go through a vigorous and effective process to ensure that in these three areas we get to the bottom of the problems.”

Asked if wanted a further independent inquiry into HES, Sir Mark said of the Audit Scotland investigation: “I would say that was an unimpeachably independent inquiry.

"I think it is very important that we concentrate on that. Whether or not we, at a later stage, need a broader inquiry at HES , I am not sure. I think it is very possible that we will. My focus will be on the Section 22 inquiry at the moment.”

Sir Mark, following a question about the status of Ms Brown by Conservative MSP Jamie Halcro Johnston, said he could not discuss individuals, but added that HES needed a “fully engaged chief executive”.

He said: “It is certainly one of my priorities to make sure that the current situation is fully resolved, so we can say it has proper leadership again.”

When asked if he expected any staff to depart, Sir Mark added: “A number of processes are underway, I don’t want to prejudge any of them. It would surprise me if nobody left the organisation over the next few months.”

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He also confirmed two members of senior management had been suspended, but this did not include Ms Brown, who was now back at work to focus on the accounts.

“She is at work now, she is not suspended,” Sir Mark said.

In his letter to the public audit committee, Mr Boyle said “aspects of wider leadership instability [at HES] are impacting on its culture and operation".

The letter added: “Due to the absence of the accountable officer and the critical role they perform in the preparation and approval of the annual report and accounts, the 2024/25 audit has been unable to conclude in line with the agreed timetable.

“We have still to agree with Historic Environment Scotland when Scottish ministers will lay the annual report and accounts, together with the Section 22 report, but I would expect this to take place in December 2025.”

In his letter, Mr Boyle said he did not routinely inform the public audit committee of his intentions to publish section 22 reports, but “felt it was necessary given the ongoing public and Parliamentary interest in Historic Environment Scotland”.

Papers issued to Thursday’s culture committee show documents listed as ‘HES corruption volumes’ were first distributed to Scottish ministers on June 2. Two more reports were made in July and a further two in September.

Mr Kerr, at committee, described the documents as “extraordinary”.

The HES audit risk and assurance committee launched an inquiry into the first allegations shortly after they were made, with the investigation ongoing to deal with the subsequent claims.

Andrew Davies, of HES, told the committee he was aware of what was contained within the corruption reports.

Documents also show the Scottish Government’s Sponsorship Team, a group of civil servants who manage the relationship between government and quangos, received a whistleblower report on June 2 alleging financial and procurement improprieties involving a HES director.

The Government’s sponsorship team has also requested a full list of guests at HES events held at the Edinburgh Royal Military Tattoo this summer. The list has still yet to be received.

Culture Secretary Angus Robertson last month expressed “extreme concern” about issues relating to Historic Environment Scotland.

He told a committee hearing the organisation is “in a period of transition” and there were ongoing “management-related issues”.

Mr Robertson said: “There is a wide range of issues of concern relating to the senior management of Historic Environment Scotland.

“They cause me extreme concern, and I expect to learn what the consequences of those cases are.”