Millions wasted by town hall and health fat cats, says watchdog

MILLIONS of pounds of taxpayers’ cash is being wasted by Scotland’s council, health and police bosses, according to a damning report by an official finance watchdog.

MSPs on the Public Audit Committee have demanded action against public sector fat cats who are guilty of repeated mismanagement and poor leadership.

They say they have grown ‘increasingly frustrated’ by bad practice flagged up in successive reports by Audit Scotland, the public sector watchdog.

Now the committee insists it is time for the Scottish Government

‘Responsibility to ensure money is spent wisely ’

to haul in chief executives to hold them to account.

Its Key Audit Themes report, published today, highlights the millions spent on locum medics because of an NHS staffing crisis, a lucrative relocation package for a senior police officer, and an inflated severance package for one chief executive as examples of waste.

Labour MSP Jenny Marra, committee convener, said: ‘In this session of parliament, the committee has looked at 50 reports and we have become increasingly frustrated to see the same issues arise again and again. Unless the Scottish Government and other public sector leaders begin to significantly address the problems that we have highlighted then the same issues will continue to impact public services.’

The committee says problems with leadership and workforce, governance and accountability, data collection and evaluating outcomes, and managing major IT projects and structural change are recurring themes leading to millions of pounds being wasted.

In the health service there has been a struggle to recruit staff, leading to a reliance on expensive locums. This was particularly true at NHS Highland, which reported a £1.1 million underspend because of recruitment problems but then spent £900,000 on just two locums.

The board admitted that covering all consultant vacancies would require £15 million for locums.

At NHS Tayside, ‘weaknesses in the settlement process and a lack of good governance’ meant a chief executive left with a severance package worth £30,000 more than in her contract.

Police were criticised over the collapse of the i6 super-computer, which was meant to save the force £200 million over ten years, and two relocation packages, worth £67,000, to help Deputy Chief Constable Rose Fitzpatrick move home.

Tory MSP Liam Kerr, deputy convenor of the committee, said: ‘We have been increasingly frustrated by the same issues repeatedly occurring. The Government and all public bodies have a responsibility to the taxpayer to ensure money is spent wisely.’

The Scottish Government said: ‘We support colleagues across the public sector to improve governance and will respond to the report in due course.’