Huge payouts approved for pay-scandal council officers
Two of three council officials who have been involved in a long-running pay scandal will receive settlements worth a total of £298,000, it was announced last night.
Nigel Barnett, former deputy chief executive of Caerphilly Council, and Dan Perkins, former head of legal services, will receive a financial settlement of £171,000 and £127,000 respectively.
The settlements were discussed at a special council meeting last night. Members of the public and press were excluded from part of the meeting as councillors discussed the details of the financial agreement.
It was also agreed at the council meeting that the employment of Mr Barnett and Mr Perkins would end, effective from yesterday. The sums are “compensation for the loss of their employment and on condition that this brings matters to a close”.
The figure does not include a financial settlement for the council’s former chief executive, Anthony O’Sullivan.
A report which went before councillors said: “This report sets out the details of potential settlement agreements with two senior officers of the Council to terminate their employment by mutual consent. This requires the agreement of Council.”
The pay scandal at the council began in March 2013, when Mr O’Sullivan was suspended after
police said they would investigate complaints about secret pay rises awarded to senior officers at the council.
Mr O’Sullivan wrote a report which recommended his own salary should rise from £132,000 to £158,000. After a public outcry his pay rise was reduced to £5,000, and the suspension was later converted to “special leave”.
Together with Mr Barnett and Mr Perkins, he was charged with misconduct in a public office after Anthony Barrett, the Assistant Auditor General for Wales, published a report saying the process had been unlawful. The criminal charges were dismissed by a judge before a planned trial went ahead.
The report which went before councillors yesterday detailed how disciplinary investigations have been taking place regarding the three senior officers, which arose from the publication of a Public Interest Report by the Wales Audit Office. It acknowledged that a police investigation had taken place, but the charges were later dismissed.
After a preliminary investigation, the council’s investigating and disciplinary committee (IDC) found there were matters to be referred to a Designated Independent Person for investigation.
The report said: “Following discussion at the IDC, and in agreement with the Leader of Council, discussions have taken place with all three officers as to whether a resolution of the issues by way of a mutually agreed settlement would be possible, as an alternative to entering the full investigation stage.”
The report said the preliminary investigation took 16 months, during which the council incurred more than £500,000 in legal costs. The employment costs of the three officers who were suspended, and then on special leave, amounted to £680,000 during the preliminary investigation. This was in addition to £1.4m in costs incurred while the authority awaited the outcome of the court case.
After the meeting concluded, a spokesman for Caerphilly Council said: “It was agreed at a meeting of full council (yesterday) that the employment of the deputy chief executive, Mr Nigel Barnett, and the head of legal services, Mr Dan Perkins, with the authority would now end, effective 31st October 2017.
“This draws to a close a most difficult period for them, and the council.
“There has been considerable public interest in this difficult matter, and in order to be open and transparent the council wishes to make it known that a financial settlement has been agreed with both officers as compensation for the loss of their employment and on condition that this brings matters to a close.
“In the case of Mr Barnett this payment is for the sum of £171,000 and for Mr Perkins the sum of £127,000. In both cases, this is considered to be much less than would have been the cost of continuing with a disciplinary investigation by a designated independent person, which could well have taken a further 12 months.
“The council does not have the ability to deal with cases such as this as it would in other situations because these officers were subject to statutory protection conferred by legislation and the matter could only be dealt with by appointing a designated independent person as required by the relevant law.
“We would like to make clear that they have fully co-operated with the council during a lengthy preliminary investigation. We would particularly like to remind everyone that the criminal charges which had been brought against them, and which have been so heavily publicised, were dismissed by the court and that it would be wrong for any suspicion or stigma attached to that process to remain in anyone’s mind.
“We sincerely wish both of them well for the future.”