Watchdog blocks settlement agreement between council and chief executive
The Wales Audit Office this week took the “unprecedented action” of stopping a county council from implementing a decision to enter a settlement agreement with its chief executive.
Appointed Auditor Anthony Barrett served an advisory notice on Pembrokeshire on Tuesday (28 October), saying he had reason to believe that the council’s decision to enter into the agreement would incur unlawful expenditure.
Pembrokeshire took the decision on 16 October. It cannot lawfully implement it while the advisory notice is in place.
In a Statement of Reasons, which can be viewed here, Barrett claimed that – in calculating the payment to Bryn Parry-Jones (reported to be worth £330,000) and deciding to enter the agreement – Pembrokeshire was relying on and had taken into account pay supplements that the WAO considered to be unlawful.
In January 2014 the Appointed Auditor issued a report in the public interest into payments made to the chief executive by the council in lieu of pension contributions, which Barrett said were unlawful.
The council subsequently rescinded the decision but not before more than £51,000 in payments had been made to the chief executive and another officer.
In the Statement of Reasons for issuing the advisory notice, Barrett said that on advice he took the view that “to the extent that the financial terms of any settlement agreement with the chief executive relies on and/or gives effect to the (unlawful) pay supplements, any decision to enter into a settlement agreement on those terms would itself be unlawful as:
(a) being beyond the powers of the council;
(b) involving the council misdirecting itself in law; and
(c) involving the council taking into account an irrelevant consideration.”
Barrett said: "After careful consideration, I have reason to believe that Pembrokeshire Council will incur unlawful expenditure if it continues its current settlement agreement with the chief executive, Bryn Parry-Jones.
“For this reason, I feel I have no option but to exercise my statutory responsibilities and take this unprecedented action."
Under the notice Pembrokeshire has to give Barrett not less than 21 days’ notice in writing of any intention it has to implement the decision.
The county council said today (30 October) that its Leader, Cllr Jamie Adams had spoken to the Appointed Auditor.
“Mr Barrett has confirmed that there are a number of relatively simple steps the council could take to resolve the position, at which point he would withdraw the advisory notice,” the authority said.
