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Scotland’s spending watchdog has issued a critical report highlighting serious governance issues within Historic Environment Scotland (HES). The Auditor General, Stephen Boyle, identified significant problems including weaknesses in procurement procedures, data breaches, the distribution of complimentary event tickets, and the absence of a formal register of interests for senior leaders. This report comes amid prior controversies surrounding the organisation, such as allegations of corruption, an internal racism dispute, and the suspension of the chief executive following an investigation into her conduct.
Boyle described the heritage body as facing a period of considerable instability, particularly regarding staff-related matters that require urgent resolution. He emphasized the need for robust controls to prevent fraud and ensure value for money, pointing out that “Historic Environment Scotland is navigating a period of significant instability and challenge, with a number of staff-related matters that need to be resolved.” He stressed the importance of addressing a previously reported toxic workplace culture through thorough investigation.
As an arms-length public body funded by the Scottish government, HES is responsible for preserving over 300 historic sites, including Edinburgh Castle. However, the latest audit revealed financial management flaws, especially concerning electronic purchasing cards—which approximately 25% of staff hold—and hospitality spending. Notably, nearly £1.9 million was spent via 400 purchasing cards in 2024/25. Additionally, the board failed to adequately scrutinize the cancellation of a £2.9 million specialist archive storage contract, with further costs expected. The organisation also operated without a chief executive or an accountable officer for almost six months during the year, a situation Boyle criticized as preventable.
In response, HES has acknowledged the “serious governance issues and cultural problems” outlined in the report. A spokesperson confirmed the body’s commitment to restoring trust through strengthened governance, enhanced internal controls, and revised policies. The Scottish government is closely collaborating with HES to tackle these challenges. Meanwhile, the organisation announced plans to initiate an independent review focused on its structure, efficiency, and workplace culture in the coming year.
Further insight into ongoing turmoil at HES was provided by its chairman, Sir Mark Jones, who revealed multiple investigations into grievances of various kinds during a Scottish parliamentary committee session. These inquiries followed a whistleblower’s June report alleging financial and procurement improprieties involving a director. The chief executive, Katerina Brown, who had been on health-related leave since May after less than a year in post, was suspended in October but has since returned.
Additional controversies have emerged within HES’s leadership. In September, the operations director, Craig Mearns, faced disciplinary action for remarks concerning visitors at Edinburgh Castle but retained his position. Another senior leader was sanctioned for provocative behaviour, specifically “twerking” at an event involving celebrity guests Martin Compston and Penny Lancaster, which reportedly caused discomfort. An independent HR consultant was brought in to investigate the organisational culture following concerns that employees were hesitant to report issues due to fear of retaliation. The former chief executive, Hugh Hall, who resigned in August, was reported to Scotland’s Ethical Standards Commissioner amid these developments, while data protection authorities have launched an investigation into alleged data leaks at HES
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