MP’s call for UK Government to reimburse Caerphilly Council £1m rejected by minister

Caerphilly MP Wayne David has called on the UK Government to reimburse Caerphilly County Borough Council more than £1 million it paid out to three suspended council bosses.

Mr David made the demand in a Westminster Hall debate on Tuesday, February 2.

Caerphilly County Borough Council’s chief executive Anthony O’Sullivan, his deputy Nigel Barnett and Daniel Perkins, the authority’s head of legal services, were all arrested in 2013 on suspicion of misconduct in a public office after a scandal which saw around 20 council bosses getting secret pay rises.

The decision to charge the men followed a police investigation into a Wales Audit Office report into the pay rises.
They were all suspended on full pay while the criminal investigation took place. The charges were dropped in October last year after the judge declared there was a lack of evidence. The three currently remain suspended on full pay while the council carries out its own internal disciplinary investigation.

During the debate, Labour MP Mr David said: “This whole legal saga dragged on for more than 18 months. There were many reasons for the longevity of the case. It was certainly complex, but a measure of responsibility must be borne by those involved in its prosecution: the police, the Crown Prosecution Service, the judiciary and the legal system as a whole. If it stops anywhere, the buck stops with the Government and the Ministry of Justice, who are responsible for the legal system.”

Watch the debate below

Justice Minister Shailesh Vara, replied on behalf of the UK Government and said he had a great deal of sympathy for the case but he was unable to offer any hope that Caerphilly Council might be reimbursed for the costs they have incurred.

He said: “It is for the judge to determine who pays the cost of the trial. The judicial process must be based on the legal advice that the council can take. The Honourable Gentleman will appreciate that the cost of employing additional staff to manage the work while a long case is going on is a matter for the council.”

Speaking after the debate, Mr David spoke of his disappointment.

He said: “The Government really ought to have recognised that in this special case the council should be reimbursed for the costs of those salaries”.