Caerphilly County Borough Council is at the centre of a second police investigation into unlawful payments to bosses.
Last month a special public interest report from the Wales Audit Office concluded that payments totalling almost £220,000 to ‘buy out’ car and annual leave allowances were unlawful.
Gwent Police has confirmed that after reviewing the report, there are grounds for a police investigation and referred the matter to Avon and Somerset Police.
It is the second time the force has made such a move.
In March last year a separate WAO report into unlawful pay rises for council bosses was referred to Avon and Somerset Police.
A Gwent Police spokesman said: “Gwent Police has now considered the public interest report on chief officer essential car user and annual leave allowances buyouts prepared by the Assistant Auditor General at the Welsh Audit Office.
“We have decided that it is a matter that should be investigated by the police to ensure complete transparency and independence.
“However in light of our close proximity and working relationship with Caerphilly County Borough Council it’s not appropriate for it to be investigated by the Gwent force, and as such the investigation has been referred to Avon and Somerset Police.
“This is consistent with the previous approach in respect of Chief Officer Pay Awards already which is currently investigation by Avon and Somerset.”
A spokesman for Caerphilly County Borough Council said: “Last month a Public Interest Report was issued by the Wales Audit Office relating to the buy out of car allowance and annual leave entitlements for senior officers.
“The council has been informed by Gwent Police that they have now referred the matter to Avon and Somerset Police.
“The authority will be responding to the Public Interest Report at a meeting of council on Tuesday January 28.”
In last month’s report, Assistant Auditor General Anthony Barrett said the council’s governance arrangements had failed.
The payments, made early in 2012, were part of a compromise agreement to compensate senior bosses who were giving up car and annual leave allowances to bring them in line with other staff members.
The report said the decision to make the one-off payments, or ‘buy outs’, was done without proper authority by council bosses or clear recording of how the decision was made and that the decision was not published – contrary to the council’s constitution in respect of delegated decisions.
The report also stated the change in the allowances affected the council’s chief executive Anthony O’Sullivan and as such should have been taken by councillors instead of the chief executive and other senior bosses.
Mr O’Sullivan and deputy chief executive Nigel Barnett are currently on police bail after they were arrested on suspicion of fraud and misconduct in a public office following the WAO’s first report in March last year.
Speaking last month following the report’s publication, Councillor Colin Mann, who is the current leader of the Plaid Cymru group, called for a special audit of the entire council.
He said: “It is clear from the damning report from the WAO that there was an attempt by some of the council’s most senior officers to thwart the democratic process by deliberately not making elected members aware of these payments. That is utterly unacceptable.”
He added: “I want to make it perfectly clear that I am not saying that everyone who received these payments was aware of the true circumstances surrounding this. Quite possibly very few officers knew how this had been done. At the same time all the fall-out from this matter now has to be resolved.
“As a cabinet member at the time, my working relationship with officers was based on one of trust. I feel councillors have been let down badly and the trust that existed has been severely strained, if not broken altogether.
“We now need a special audit of the affairs of Caerphilly County Borough Council to find out whether any other payments have been made that ignored standing orders and financial regulations.”
Speaking after the publicatio of the second report last month, Labour council leader Harry Andrews, said: “I’m pleased that our Labour leadership called several months ago for a review of our council’s ‘delegated powers’, under which council officers may act without councillors’ direct authority, so that we can amend our council’s constitution and improve our governance arrangements still further.”
Avon and Somerset Police has referred its investigation into the pay rise scandal to Bristol Crown Prosecution Service for consideration.
I am pleased that this second investigation has been referred to Avon & Somerset police. Whatever the outcome the investigation will be carried out by police officers who will not have to work with the council on completion of the enquiry.
A spokesperson said……
WHERE IS THE LEADER OF THE COUNCIL AGAIN!!
What a complete joke.
The council should surely be in special measures by now. It is quite clear that the councillors have lost control of the council. This is an unacceptable situation for democracy, and especially as we keep being told of, apparently 'dire economic times'!
To say I am disgusted is an understatement, add to this the fact that the council has spent £117,000 on social media since 2010 (according to the councils own figures as published in the Daily Mail), it seems like money is merely confetti!
The entire council needs to go up for re-election to have a fresh mandate to sort out all of these problems. failing this the council should cease to exist, with the council split into the neighbouring councils.
Tax Payer, this would be a joke but, I am afraid I do not find this funny. We are talking of just shy of £2 million if my memory serves me right!
Plaid Cymru asleep on the job and they won't apologise. Both Plaid and Labour are both in this together but Plaid wont apologise for any of this.
This is making Caerphilly a laughing stock, perhaps the Welsh Government should take it into administration, Oops, they are Labour controlled too, not much hope of justice there then.