Caerphilly County Borough Council’s long-running pay scandal is set to cost taxpayers a further £469,000 – including the cost of special independent investigator at £1,000 a day.
Council chief executive Anthony O’Sullivan, his deputy Nigel Barnett and head of legal Daniel Perkins were all suspended on full pay in 2013 in the wake of a report from the Wales Audit Office into secret pay rises for 20 manager.
The WAO found the decision to award the pay rises was unlawful because Mr O’Sullivan had written the report recommending the pay rises and that he was present at a secret meeting in September 2012 that agreed them.
The meeting itself, attended by five councillors, was also unlawfully held because it was not publicised beforehand.
Mr O’Sullivan saw his salary increased from £132,000 to £158,000, although after details of the increase were leaked to the media, the rise was reduced to £5,000.
The WAO report prompted a police investigation and Mr O’Sullivan, Mr Perkins and Mr Barnett were arrested and charged with misconduct in a public office.
All charges were later dropped over a lack of evidence and the trio’s suspensions were later ended and they were placed on voluntary special leave.
It was only when the charges were dropped in October 2015 that Caerphilly County Borough Council could start its disciplinary proceedings.
Councillors agreed the extra financial provision of £469,000 at a meeting on Tuesday.
The council’s disciplinary committee decided earlier this year that a special “designated independent person” needed to be appointed to carry out the full investigation at a cost of £100,000. It has been estimated the inquiry will take at least 100 days.
A further £241,000 was agreed to cover the potential salary costs of the three senior officers between July and the end of the year and an extra £128,000 to meet expected legal costs, also to the end of the year.
Including salaries paid out to the three officers while suspended and on leave, legal costs, and the salary of interim chief executives, the pay scandal will have cost the council around £5.25m by the end of the year.
Speaking before Tuesday’s meeting, Councillor Colin Mann, leader of the opposition Plaid Cymru group on Caerphilly Council, said: “The last report to council in March took the overall bill to more than £4.75m and now this new report to council means the cost to tax-payers is well over £5m.
“It is hugely frustrating that nearly two years after the court case against the three senior officers came to a conclusion we are still a long way away it seems from bringing this fiasco to an end. It could well go into 2018. We have heard lots in recent weeks about a magic money tree – it seems council taxpayers’ in Caerphilly could need a magic money tree if this carries on.
“This continues to mean that money is going on this debacle which could have gone on frontline services like tackling litter, dog mess, parking issues and providing support for schools or older people. What a mess.”
The council’s Labour leader Dave Poole told Tuesday’s meeting that the local authority had to follow a strict statutory process as it was dealing with such senior executives.
He said: “Many people are concerned about the length of time that this matter is taking to resolve and I fully understand and share these concerns, but it is important to stress that we are bound by a statutory process, over which we have no discretion.
“No one wants to see scarce council resources being diverted to fund these proceedings, but the simple fact of the matter is that we have no other option but to follow the proper statutory process.
“I would like to assure council tax payers across the county borough that the investigation is being dealt with as quickly as possible, but we must ensure this is done fairly and thoroughly.”
This is totally disgusting how long this fiasco has run on for, the residents of Caerphilly will be thr true losers when council tax will have to raise. I wonder which services they will cut, or down grade.
They won’t cut or downgrade any services – they’ll choose the easy option and look to raise council tax or more likely increase charges for council services.
Knowing our luck they will raise council tax and still cut services. If they do cut them i hope thy target the right ones if there is any right ones.
People had a vote on whether they wanted this scandal to run on or be sorted on 4th May 2017. They voted to maintain the status quo, 52 Labour councillors and about 18 Plaid councillors were duly elected. There is now no chance that this matter wil be concluded in a manner that reduces the final bill which will run into millions of pounds.
Sadly all what you said is true. A sorry state of affairs
Indeed Edward, I understand the need for taxes, both national and local. Taxes pay for education, the armed forces, the health service and half a hundred other things that not just benefit our society but hold it together. We are in a covenant to pay part of what we produce to government for the common good.
It really does anger me though when taxes are squandered. There is a ludicrous argument that Chief Executives of local authorities have to be paid stellar salaries “to attract the best people.” This is demonstrably nonsense. I have never worked for local government but I know that being present at a meeting, held in secret, where a massive pay rise for myself is being discussed is illegal on several counts. This is what these already highly paid individuals did.
Regardless of criminal law the councils own procedures have been ridden over roughshod. If I had been leader of the council firstly the report written to justify massive pay rises would never have seen the light of day. Secondly, if this debacle had already occurred before my time as leader I would have dismissed all employees implicated. Let them go to court and lose, they would likely have had to pay the council’s legal costs too. There is no way I would sit back and watch millions of pounds being wasted in this fashion. Unfortunately people are happy with the Labour/Plaid ticket – good luck to them.
I agree with you fully there Richard, maybe you can run as independant next time
Maybe I will but an independent candidate has to foot all the bills involved in the campaign, leaflets, advertising, display boards and so on. My pockets are not deep and I have run in three elections. I would have to think very carefully before running for a fourth time as voters in the borough seem to prefer a binary choice of Labour or Plaid Cymru.
The residents of Caerphilly were given a choice – they chose to say that they are happy to waste millions of taxpayers money on this disgraceful saga, they were given the chance to kick them out but failed to do so, those who voted them back in have no right complaining when services are cut and their council tax is increased yet again to pay for these three characters who are laughing all the way to the bank.
We predicted Labour would be re-elected despite this continuing fiasco.
Cllr Poole stated that “this is a statutory process over which we have no discretion ” really ?
Why has it taken over 4 years to implement an enquiry via an independent designated person ? Why wasn’t this undertaken immediately following the collapse of the court case ?
Im pleased to say i didnt vote for plaid or Labour. I have a clear Conscious. I just hope that the people who voted labour will be happy with their tax rises and cuts to service. I hope im there to say i told you so when it does happen
J
No me neither it’s beyond how Caerphilly residents can vote for them. I dare say that this disgraceful and criminal waste of public money will still be dragging on when the next election rolls around – and the fools will still vote them back in.
I think we all agreed prior to the General Election that this administration was likely to be re-elected,and I agree – it is no good re-electing these people and then whingeing about the continuing fiasco they preside over.
Andrew O’Sullivan give himself a huge pay increase 26k his package rose to 158k and a increase of 20% to 20 more fat cats in Caerphilly council they have never been named or shamed why.
Sack the Fat cats. Why Is he still being paid.
Because the party that gave him the rise has not been voted out. This is the Labour Party, with a little help from Plaid Cymru who also sent a representative to the secret remuneration meeting.
Theses payments, I think, will continue for a long time.
One of the five councillors that voted in the illegal secret meeting was the now MP for Rhymney valley and Merthyr, Gerald Jones….What a fine upstanding example of a people’s representative.