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The leader of Caerphilly County Borough Council should “do the right thing and resign” after referring himself to Wales’ public services watchdog, an opposition councillor has claimed.

The council confirmed earlier this week that its leader, Cllr Sean Morgan, had “in the interests of transparency” referred himself to the ombudsman’s office.

The matter involves “recent correspondence” between Cllr Morgan and “a resident” – with BBC Wales News reporting it relates to details of the settlement paid to former chief executive Christina Harrhy, who left the council earlier this month.

Councillors had allegedly been warned to not share details of that deal during a behind closed doors meeting on October 7.

If they did, they were told they would risk breaching the local government code of conduct and a referral to the Public Services Ombudsman for Wales, according to reports from that meeting.

Following the confirmation the leader had referred himself to the ombudsman, Cllr Nigel Dix, who leads the independent group in the council chamber, said: “I find it incredible that a man in his position with so much responsibility would do this.”

“He clearly has scant regard for the rules set by himself and his council,” added Cllr Dix. “I think he needs to seriously consider his position, then do the right thing and resign.”

Cllr Lindsay Whittle, who leads the Plaid opposition group in Caerphilly Council, called the events “embarrassing” for the local authority and the Labour Party.

“Nothing surprises me anymore about the shambolic way the council is run by Labour,” he said. “All councillors were specifically told not to release details of the settlement with the former chief executive, so it frankly beggars belief that the person who appears to confirm the settlement details is no other than the council leader.”

Cllr Whittle added: “In his position, Sean Morgan of all people should have known better and been far more careful.

“I wonder what mishap will next befall the leader and his cabinet.”

A Caerphilly Council spokesperson declined to comment further on the councillors’ remarks, but said earlier this week: “A matter has been brought to our attention involving the leader of the council. The concern relates to recent correspondence between Cllr Sean Morgan and a resident.

“Cllr Morgan, in the interests of transparency, has decided to refer himself to the Public Services Ombudsman for Wales.

“We are unable to add anything further at this stage.”

The council reportedly agreed a £209,000 settlement deal at the October 7 meeting for the departing Ms Harrhy, following a period of absence from the local authority.

Wales’ auditor general has since confirmed he is scrutinising the details of the deal.

Following Ms Harrhy’s departure, deputy chief executive Dave Street has taken the top job on an interim basis while the council “considers the next steps in terms of appointing a permanent chief executive”.