Stephen Duncan steps down from Historic Environment Scotland after a year‑long suspension over a £100,000 hospitality and procurement controversy.
The Historic Environment Scotland (HES) has announced that Stephen Duncan, its Director of Marketing and Engagement, will leave the body at the end of the year. Duncan, who joined the organisation when it was known as Historic Scotland, has been on a notice period since his suspension nearly a year ago.
During this period he will no longer perform any duties tied to his publicly-funded role, according to an internal statement released by the quango.
Background to the suspension
The suspension originated from concerns over procurement practices within HES. An internal audit flagged a series of hospitality contracts that appeared to bypass standard tendering procedures.
Duncan, as the senior marketing officer, was identified as the approving authority for payments that totalled close to £100,000. Whistle-blowers raised questions about whether the expenditures complied with public-sector spending rules, prompting the organisation to place Duncan on administrative leave while investigations continued.
Alleged hospitality breaches
Investigative reporting revealed two particularly contentious events. First, Duncan organised a “festive work meeting” at Edinburgh Castle for a team of ten, which devolved into a “free bottomless brunch” that extended into an after-hours drinking session. The gathering was funded by the public body, blurring the line between staff morale activities and misuse of taxpayer money. A second incident involved a dinner for Duncan and his wife in the Queen Anne Building during the Royal Edinburgh Military Tattoo, allegedly costing only £25 – a figure that raised eyebrows given the high-profile setting.
Contract approvals and financial concerns
Beyond the events themselves, the heart of the controversy lies in the approval of hospitality contracts worth nearly £100,000. Duncan signed off on these agreements without the usual competitive bidding process, prompting allegations of both ethical lapses and potential legal breaches. Critics argue that the lack of transparency undermines public confidence, especially as HES manages an annual budget of £70 million to safeguard Scotland’s historic sites and artifacts.
Official response and government reaction
HES issued a statement confirming that Duncan will remain an employee until the end of the year but will not carry out any duties during his notice period. A spokesperson added that the organisation “thanks Stephen for his 17 years of service and wishes him well.” Meanwhile, officials from the Scottish Government described some of the language used in public statements about the case as “potentially misleading,” indicating that the quango may have overstated or mischaracterised the facts surrounding the hospitality controversy.
Quotes from insiders
An unnamed HES insider expressed frustration: “Why it has taken close to a year from when he was suspended is beyond belief. Hopefully this is the start of a clear out at the top.” Interim CEO Stephen Uphill also addressed staff, noting that Duncan’s departure follows earlier exits, including former Director of Operations Craig Mearns, who faced accusations of racism, and a senior manager disciplined for an inappropriate performance at a corporate event.
Wider implications for the heritage body
The departure of a long-standing executive adds to a growing list of leadership changes at a time when HES is under intense scrutiny. With a budget of £70 million annually, the organization is tasked with preserving Scotland’s most iconic monuments, from castles to archaeological sites. Repeated controversies risk eroding public trust and may invite parliamentary inquiries or calls for a more robust governance framework. Observers suggest that the ongoing reshuffle could pave the way for a cultural shift toward greater transparency and stricter adherence to procurement regulations.
