Creative Scotland, the national arts funding body, has defended itself against a charge from a leading publisher that it was unaccountable and doing little to improve literature.

Venu Dhupa, the organisation's director of creative development, responded after Edinburgh-based Birlinn's managing director Hugh Andrew criticised its policies.

He had claimed in a letter to The Herald on Monday that Creative Scotland was "leaden apparatchik speak" and that "millions of pounds [are] being squandered on meaningless projects by bureaucrats safely esconced on salaries far higher than most in the arts world".

Mr Andrew also said the body was "completely unaccount-able", a charge rejected by Ms Dhupa. She said investments for the year 2011-2012 are published on its website and that its "door is always open to discuss areas of concern".

On literature, Mr Andrew, who was a member of the Literature Working Group, said its report on the subject was "thrown into the bucket by the same arts bureaucrats it had the temerity to criticise". He added: "It is a quite remarkable statement by bureaucracy – that a body of people, all of whom were discussing, should have precisely nothing of interest to say on the use of Government money in that area."

Responding to criticism of its treatment of literature, Ms Dhupa said it has commissioned the first Book Week Scotland, a national programme to promote books, writers and reading, and said the body's Creative Futures residency programme has supported almost 30 writers' residencies. She added: "Since April 2010, Creative Scotland has invested more than £700,000 in Scotland's publishers, including £29,000 in Mr Andrew's own company, Birlinn Ltd.

"Since 2011, we have awarded over 28 bursaries for writers from a range of disciplines, including poetry and non-fiction, as well as novels, totalling more than £200,000."

Ms Dhupa said the body will hold a review of the literature sector in the coming year, and in particular it will consider the issues of digital publishing and intellectual property.

She added: "Let's be clear; we are committed to increasing both access to and engagement in arts, culture and creativity in all parts of Scotland. Recently we have invested £6.8 million in new projects from Shetland to Dumfries and Galloway as part of the Year of Creative Scotland.

"Huntly was one of the communities rewarded as part of the Creative Places Awards which seek to celebrate and support positive arts and culture initiatives taking place at a very local level."

On Tuesday, The Herald reported that Culture Secretary Fiona Hyslop had again urged Creative Scotland to be more transparent in its dealing with arts and art companies.