'More work needed' to address issues at scandal-hit Historic Environment Scotland

Scotland’s public spending watchdog says “more work is needed” to improve Historic Environment Scotland after a scathing report into its governance.

Last December, Audit Scotland highlighted “unacceptable” governance and financial management at the country’s scandal-hit heritage body after it was rocked by a series of controversies.

This included a senior leader being sanctioned after allegedly “twerking” in front of actor Martin Compston at an Edinburgh Castle event.

Chief executive Katerina Brown was suspended following an investigation into her conduct, and the organisation operated without a chief executive or accountable officer for almost six months of the year.

Mrs Brown later left her role in September.

Issues were also raised regarding the use of some 400 electronic purchasing cards, with one in every four members of staff possessing one.

The body also faced allegations of corruption and an internal racism row.

Sir Mark Jones, the former chairman of the organisation, which maintains more than 300 historic sites across the country and is funded through Scottish Government grant-in-aid, resigned less than a year into the role in July.

On Thursday, Audit Scotland issued an update finding that HES has taken action to address its organisational weaknesses, but “more work is needed”.

‘More work needed’

Auditor general Stephen Boyle said in an update that the organisation has reviewed its procurement practices, electronic purchasing card and expenses policies and audited its arrangements for ticket allocation, gifts, and hospitality.

It also has put in place a register of interests for the executive leadership team.

However, he underlined that HES needed to do more work to fully implement and embed new policies and the required improvements “at pace”.

Mr Boyle said: “Historic Environment Scotland has taken action to investigate and begin to address the weaknesses I reported on in 2025.

“However, ongoing leadership instability, along with other challenges, has had an impact on improvements being put in place.

“It’s now important that my recommendations, and those of the independent review, are fully implemented at pace by HES.”

HES said the report shows “progress has been made”, but changes still need to be implemented.

They added that an independent review of its structure, efficiency, and culture will be conducted in the New Year.

Ronnie Hinds, interim chair of Historic Environment Scotland, said: “This report reflects a year of important achievements alongside significant organisational challenges.

“Those achievements reflect the expertise and commitment of our staff, but they do not diminish the concerns about governance and leadership. Our public responsibilities must be matched by the highest standards of accountability and conduct.

“The auditor general recognises that progress has been made, but some changes still need to be fully implemented and shown to be operating consistently.

“The board has accepted all the recommendations of our independent organisational and cultural review and agreed a plan for their implementation.

“We are committed to delivering that plan at pace, with the resources required, clear management accountability and effective Board oversight. If we do that, HES will be well placed to fulfil its role as a leading organisation in Scotland’s culture and heritage sector.

“Public confidence must be earned through improvements that stand up to scrutiny.

“The test is whether those changes become part of how HES operates every day, and whether our staff and the public can see the difference. Strengthening the organisation matters because the work we do to protect and promote Scotland’s heritage matters.”