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Christina Harrhy has left her chief executive role at Caerphilly County Borough Council following a secret meeting of councillors on Monday, when a six-figure settlement deal was reportedly agreed.

The council confirmed Ms Harrhy’s departure but would not divulge further details of what was said during the behind-closed-doors discussions.

The Local Democracy Reporting Service (LDRS) understands a majority of councillors present voted in favour of a settlement worth £209,000 rather than pursue a lengthy, costlier formal investigation or arbitration process.

Councillors were warned at Monday’s meeting to not discuss the matters with the press, but the LDRS understands Ms Harrhy was not present.

Cllr Sean Morgan – who leads the local authority – reportedly left the meeting after declaring an interest in the matters being discussed.

Ms Harrhy has been absent from the chief executive role for 11 months, with her deputy – Dave Street – filling in during council and committee meetings and as the returning officer during May’s police and crime commissioner elections.

A council spokesman confirmed Mr Street will now “act as interim chief executive while the Council considers the next steps” in terms of appointing a permanent replacement for Ms Harrhy.

Chief executive roles are among the most influential and highly-paid public sector positions in Wales.

In the financial year to April 2023, the chief executive’s salary was £148,773 with pension contributions of £28,640 – a total cost of £177,413 to local taxpayers. The current salary is £153,111.

Reacting to Caerphilly County Borough Council’s decision to pay off its chief executive, Unison Caerphilly branch secretary Lianne Dallimore said: “The council says finances are extremely tight.

“People are losing their jobs with more redundancies on the way, and community services are being slashed.

“That makes it all the more painful for staff and residents affected to hear the authority is making such a pay out when times are so tough. Council workers and members of the public will be deeply disappointed.”

Long-term special leave

Ms Harrhy had been on long-term special leave for 11 months – on full pay – prompting questions from councillors about the capacity of the authority’s management team and the cost to taxpayers. It was originally believed Ms Harrhy was on sick leave.

During that time Ms Harrhy was on a shortlist of two for the role of chief fire officer at South Wales Fire and Rescue, but was beaten to the top job by Fin Monahan, an RAF Air Vice-Marshal.

It is understood that Ms Harrhy fell out with council leader Sean Morgan – amid tensions with a senior council officer – and that accusations of bullying were made against the Labour leader. An investigation later cleared Cllr Morgan of the allegations.

At the behind-closed-doors meeting on Monday, councillors were warned not to speak to the media on details of the £209,000 pay-off. If they did, they could face being reported to the Public Services Ombudsman for Wales for breaching the local government code of conduct.

Under local government rules in Wales, councils have to appoint an independent disciplinary investigator. Councillors were given a choice between the £209,000 pay-off, or the investigation route which could have cost £520,000.

The press and members of the public were not allowed to attend because the meeting dealt with the employment of a person. This is laid out by the Local Government Act 1972.

The second permanent chief executive to get a pay-off

Ms Harrhy is Caerphilly Council’s second permanent chief executive to get a pay-off in recent years from the authority, following Anthony O’Sullivan’s £110,700 pay-off.

Mr O’Sullivan was also paid more than £1m in salary and pension contributions after he was first suspended in March 2013 for his role in agreeing a secret pay rise for himself and other council bosses.

The Wales Audit Office ruled the pay award unlawful and Mr O’Sullivan was suspended on full pay, which was later turned into special leave.

A lengthy disciplinary process, involving a designated independent person, was also held up because of a pending criminal case against Mr O’Sullivan, which was eventually dropped by the Crown Prosecution Service.

After the lengthy disciplinary investigation, Mr O’Sullivan was dismissed with immediate effect in October 2019. He later went on to make pay claim demands totalling around £319,000, although he later withdrew the biggest, for payment in lieu of leave since 2013, totalling nearly £160,000.

Councillors turned down the demands in October 2019 and the issue was set for an employment tribunal later that year – including a claim of unfair dismissal – until the authority voted to settle the claim with a £110,700 pay-off.

While the two employment issues surrounding the two former chief executives were different, the spectre of Mr O’Sullivan’s investigation and its costs were one of the reasons Ms Harrhy’s pay-off was proposed.

Additional reporting by Richard Gurner.