The investigation was sparked at Historic Environment Scotland (HES) after the Line of Duty star was “made uncomfortable” by the woman’s behaviour.
10:22, 12 Oct 2025Updated 10:24, 12 Oct 2025
Martin Compston(Image: GETTY)
A senior leader at a crisis-hit public body was sanctioned after allegedly “twerking” in front of actor Martin Compston and upsetting Rod Stewart’s wife.
The investigation was sparked at Historic Environment Scotland (HES), which is responsible for the care of Edinburgh Castle and the Crown Jewels, after the Line of Duty star was “made uncomfortable” by the woman’s behaviour. The incident occurred at a work event where the manager is said to have also upset Rod’s wife Penny Lancaster, according to HES correspondence seen by The Scotsman.
It is the latest scandal to hit the Scottish Government quango. The outlet also says a director at the heritage body arranged a boozy Christmas working lunch at Edinburgh Castle – but pressed catering bosses for a freebie.
It has further emerged senior management created a new pay band to give themselves a salary hike of between 19 and 21.5 per cent. Stephen Kerr, who sits on Holyrood’s culture committee, said the “bombshell revelations” were “disgraceful”.
Rod Stewart and his wife Penny Lancaster(Image: Getty)
“These latest bombshell revelations confirm the complete chaos within Historic Environment Scotland,” Mr Kerr said. “Clearly senior figures feel they can reward themselves handsomely or behave in a wholly inappropriate manner without suffering any consequences.”
In 2023, HES bosses arranged a corporate event at Edinburgh Castle for invited guests, hosting Mr Compston and Ms Lancaster. Witnesses said a senior HES member became drunk and sat on a guest’s knee before standing up and twerking in front of the guest and Mr Compston.
She is then claimed to have posed for a photograph with Ms Lancaster and referred to them both as “two dumb blondes together”. Complaints were lodged that both celebrity guests were made to feel uncomfortable. HES is then understood to have brought in an external expert to carry out a HR investigation into the incident.
The handling of the investigation was supported by chief executive Katerina Brown. The Scotsman revealed earlier this week Ms Brown has separately been suspended, after just one year in the role.
The complaint against the senior staff member was upheld, but HES would not confirm what sanction was taken against her. Sources close to the matter said the external investigator also criticised what was described as an internal culture of fear in the organisation, saying he was unable to fully probe the situation because staff were too scared to talk.
A leaked report says witnesses said they felt “uncomfortable and frightened to speak for the fear of retribution”. The external investigator recommended HES commissioned a “culture review” with all staff in that area of the organisation.
In a separate incident, Stephen Duncan, the marketing and engagement director of HES, arranged for a festive work meeting for his team on December 18 last year. However, castle sources said the afternoon tea morphed into a “free bottomless brunch” for the team of ten. It is understood Mr Duncan approached the management of the Castle’s Queen Anne Building restaurant for “reduced rates” for the event.
The original quote was £22.50 plus VAT per head excluding alcohol, but, following an extended drinking session during work hours, the group did not pay. Questions had already been raised when it emerged Mr Duncan had allegedly paid £25 for a dinner with his wife in the Queen Anne Building during the Royal Edinburgh Military Tattoo.
Mr Duncan was paid between £105,000 and £110,000 in 2023-24, according to the agency’s most recently published annual report.
Historic Environment Scotland is responsible for the care of Edinburgh Castle and the Crown Jewels(Image: Getty Images)
A HES spokesperson said: “We remain committed to ensuring that all hospitality and hosting is appropriate, proportionate, and in line with public expectations. Our code of conduct and guidance on official hospitality sets out our expectations, and we are committed to ensuring any allegations are dealt with following the appropriate policies.”
Holyrood’s culture committee heard last month that HES directors were handed a pay rise of 16 to 18 per cent in April, despite the heritage body facing a £3 million budget shortfall. It has now also emerged that in addition to this, a new band of “elite heads of service” are in line to receive increases of up to 21.5 per cent thanks to a new Pay & Grading Framework.
New Grade 7 positions will mean the earning potential of around ten hand-picked heads of service, including spin doctors, increases by between £12,430 and £12,870 – or 19 to 21.5 per cent. There was no open application process for the roles. Instead, directors are alleged to have decided who would receive the salary hikes.
By comparison, Grade 1 is apprentice level, Grade 3 is skilled tradespeople and Grade 8 is directors, excluding the chief executive. As a result, apprentices will see their salary earning potential increase by between £878 and £1,316, or 3.5 per cent to 5.4 per cent. Skilled tradespeople will see their earning potential increase by between zero and £255.
Directors will see their earning potential increased by between £13,514 and £15,097 thanks to this framework. HES’s new business model includes an annual reduction of £2m per year in Scottish Government grant-in-aid funding over the next five years.
A source said: “The implementation of the Pay & Grading Framework must be seen in the context of HES’s current financial position. The ambitious financial strategy was set by the board based on a clear assumption of the effects of the framework. HES is currently anticipated to fall at least £3m short of this target and HES’s budget was set against an assumption of a 2 per cent pay rise for all staff.”
Join the Daily Record WhatsApp community!
Get the latest news sent straight to your messages by joining our WhatsApp community today.
You’ll receive daily updates on breaking news as well as the top headlines across Scotland.
No one will be able to see who is signed up and no one can send messages except the Daily Record team.
All you have to do is click here if you’re on mobile, select ‘Join Community’ and you’re in!
If you’re on a desktop, simply scan the QR code above with your phone and click ‘Join Community’.
We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like.
To leave our community click on the name at the top of your screen and choose ‘exit group’.
If you’re curious, you can read our Privacy Notice.
It follows a number of high-level personnel changes at the organisation, including the early departure of former chair Dr Hugh Hall and the appointment of Sir Mark Jones as his successor last month.
Mr Kerr said: “It is disgraceful that it has taken courage and integrity from whistleblowers to blow the lid on the toxicity and lack of accountability within this organisation, which enjoys over £70m worth of taxpayer funding.
“These latest claims sum up why I have written to the Auditor General urging him to investigate the culture at HES, so that those responsible for some disgraceful behaviour are finally held responsible.”
A HES spokesperson said on the sanctioned manager: “As a matter of policy, HES does not comment on individual personnel matters. We remain committed to maintaining a respectful, inclusive and safe environment for all staff, partners, and stakeholders, and allegations are dealt with following the appropriate policies.”
On the new pay scale, the spokesperson added: “HES is committed to fair pay that is comparable with other Scottish public sector organisations. The Grade 7 pay band was introduced following an independently conducted pay and grading review.
“The revised framework ensured that 80 per cent of the investment targeted the three lowest pay bands, with 9 per cent allocated to senior roles. The framework was endorsed by our three recognised trade unions, and the investment was approved by the Scottish Government.
“The cost of implementing the new pay and grading framework has been factored into our expenditure over the next five years. Whilst the overall investment is significant, we are still committed to invest into our properties in care and enhance the visitor experience for the benefit of Scotland.”