Council leader reveals secret £209k pay-off details

A Labour council leader has referred himself to a standards watchdog after he revealed to a member of the public details of a £209,000 confidential pay-off to the authority's former chief executive.

Caerphilly council had banned the press and public from attending a meeting where Labour members agreed a settlement for Christina Harrhy, who had not been at work for almost a year.

Despite the authority trying to keep the matter private, Sean Morgan appeared to confirm the amount quoted in the media but said Harrhy would not receive all of the £209,000 reported.

Caerphilly council said the councillor has referred himself to the Public Services Ombudsman "in the interests of transparency".

Morgan's email to a resident criticised the media for not reporting details of a document about the settlement which has not been made public, and blamed Welsh government rules for the pay-out.

Councillors were warned they could face a complaint to the Public Services Ombudsman should they divulge the details of the meeting, which happened earlier in October.

Morgan has now referred himself to the watchdog, which investigates alleged breaches of councillor behaviour.

Sources told BBC Wales the meeting agreed a settlement that would cost taxpayers £209,000.

It is understood there had been a dispute at the top of the authority, and Ms Harrhy had complained of a breakdown in relations and trust between herself and Mr Morgan, and another senior officer.

Sources had told BBC Wales a subsequent investigation had allegedly failed to stack up the claims.

A Senedd member has claimed the complaints were "vexatious".

Auditor general Adrian Crompton, who oversees how Wales' public money is spent, has said he will ask the authority for an explanation.

So far the authority has not spoken publicly about the settlement, or the circumstances surrounding Ms Harrhy's near-year long absence.

The email came about after Chris Moss of Blackwood got in touch with Mr Morgan to complain about the settlement.

In response, written two days after the settlement was agreed, the council leader said: "This has been a long-standing issue that has had to be navigated carefully, as there is a requirement for us to follow a Welsh government policy in this area which we have no control over, but covers how these matters are dealt with in connection with senior officers."

Morgan said the amounts quoted in the press did not reflect the amounts received by the former chief executive "as they also include... costs regarding national insurance and pensions that the council has to legally pay out".

"A significant proportion of the payment relates to statutory payments that the council would have to pay regardless of how, or why, the chief executive left the organisation," he added.

"Whilst these matters were contained in the report, the various media outlets have chosen not to reference this."

The report was understood to have been seen by councillors at the meeting where the settlement was agreed last week, but it has not been published by the council or formally shared with the press.

Morgan added that he did not believe the council had anything to fear from going to a tribunal, but "given the timescales involved and the cost of us following this process, I hope you can see that a settlement is the best outcome for residents".

He said: "I understand that this will be difficult for some people to comprehend, but the settlement negotiated was the lowest cost option for the council, and has concluded this matter once and for all, which is so much more preferable, and cost effective, than dragging on for several more months."

His email referred to the Local Authorities (Standing Orders) (Wales) Regulations 2006, which concerns disciplinary procedures for chief executives and other senior council officials.

It says that no action can be taken without the appointment of a designated independent person.

The email does not detail amounts but BBC Wales understands that an alternative process to the settlement was thought to cost more than £500,000.

BBC Wales asked Caerphilly council if it could now provide more information about the settlement itself, given the leader had discussed it with a member of the public.

In response, a Caerphilly council spokesman said: "A matter has been brought to our attention involving the leader of the council. The concern relates to recent correspondence between councillor Sean Morgan and a resident.

"Councillor 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 authority had previously said: “A special meeting of council took place on 7 October to discuss a confidential employment issue. It would not be appropriate to disclose the details of the meeting.

"We can confirm that Christina Harrhy has left the authority and that the deputy chief executive, Dave Street, will act as interim chief executive while the council considers the next steps in terms of appointing a permanent chief executive.”