The acting chief executive of Caerphilly County Borough Council has been suspended following his arrest on suspicion of fraud and misconduct in public office.
Nigel Barnett was arrested by Avon and Somerset Police and released on bail on Tuesday, alongside chief executive Anthony O’Sullivan. The pair were questioned in connection with a decision to award 21 council bosses huge pay rises.
Mr Barnett is the authority’s deputy chief executive and was fulfilling the top role while Mr O’Sullivan was suspended.
Yesterday the council announced that Sandra Aspinall, the acting deputy chief executive, would assume responsibility for the head position.
Council leader Harry Andrews said: “In light of recent developments, the acting chief executive has recognised the difficulty that this creates in terms of him fulfilling his responsibilities as Head of Paid Service, and that his continued attendance at work would not be appropriate at this time.
“He has been suspended from his duties pending the outcome of these investigations.
“A special meeting of Full Council will take place on Thursday July 11 for members to consider a way forward.
“I would like to assure residents that Caerphilly county borough council has a first class workforce and we are determined to continue to deliver high quality services to all sections of the community.”
The decision to award the pay rises, running into thousands of pounds, was “unlawful”, according to a report published by the Wales Audit Office – prompting a police investigation. Mr O’Sullivan’s pay increased from £132,000 to £158,000.
In March, following the publication of the report, Gwent Police asked Avon and Somerset Police to look at the WAO findings.
Mr O’Sullivan was suspended on full pay with deputy Mr Barnett taking up the role on a temporary basis.
Pay rises of up to 30% for 21 senior council bosses were agreed by a secret committee of councillors in September 2012. The committee had approved the pay deal after being recommended to do so in a report penned by Mr O’Sullivan.
The pay rises caused huge anger among staff and the public and forced the council to vote through a compromise deal scrapping the original decision.
Colin Mann, leader of the opposition of Plaid Cymru group on Caerphilly Council, said on Wednesday: “The news that two senior officers had been arrested yesterday was very unexpected.
“But it is important at this very difficult time for Caerphilly council that services to the residents of the county borough run smoothly and there is no impact on those services during the ongoing police investigation.
“It is important that the Labour leadership make it clear how they plan to proceed with the administration of the council in the months ahead.”