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Council spends more than £2m on confidentiality agreements in five years

News | Emily Gill - Local Democracy Reporting Service | Published: 10:27, Tuesday December 3rd, 2019.
Last updated: 10:27, Tuesday December 3rd, 2019
Caerphilly Council's headquarters in Tredomen

More than £2.1 million has been spent by Caerphilly County Borough Council on issuing confidentiality agreements over the last five years.

A Freedom of Information (FOI) request by the council’s Plaid Cymru group found that confidentiality agreements, including legal fees, cost Caerphilly County Borough Council £2.124 million from 2014-15 to 2018-19.

The last two years has seen the cost of confidentiality agreements reach more than £1.1 million. Last year it cost the council £514,000 and the year before, £598,000.

In 2016-17 it was £384,000, in 2015-16 it was £265,000 and in 2014-15 it was £362,000.

Only the head of people services, Lynne Donovan, has the permission to sign off any confidentiality agreements, in the presence of a witness.

The response from the council reveals that no councillors are involved in signing off non-disclosure agreements.

The leader of the council’s Plaid Cymru group, Cllr Colin Mann, said: “There is a need for a review about the operation of these agreements by the authority because of the large amount of public money involved which has risen rapidly over the past five years.

“Should, for instance, officers solely be involved in signing off agreements without any input from senior councillors?

“In my view there is need for greater transparency in the use of these agreements.”

The FOI also found that 32 staff left the council last year after signing confidentiality clauses, costing the council £282,000.

Of these, nine were under investigation or facing the potential of disciplinary action, and 21 staff were on sick leave at the time the agreement was signed.

A spokesman for the council said: “These types of settlement agreements are not uncommon, and many employers use them.

“Confidentiality clauses are standard in settlement agreements and relate to confidential or commercially sensitive information.

“This could, for example, include information that relates to clients, agents, suppliers, budgets or the provision of services etc.

“Where confidentiality is necessary to protect the privacy or other rights of an individual, mutual agreement is sought and enacted through the use of such agreements.”

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