Pay off for council boss to be questioned by watchdog

Christina Harrhy had been chief executive of Caerphilly council since 2018

Wales' spending public watchdog is to ask Caerphilly council to explain a £209,000 payoff for its now former chief executive.

Adrian Crompton, auditor general, says his team will be speaking to the cash-strapped local authority on its rationale for the payment to Christina Harrhy, who had been absent from the council since last November.

Councillors agreed the payment in a secret meeting last week. It is the second payoff for a chief executive since 2021.

The authority said it would welcome "further dialogue on any aspects of our accounts".

The authority has not confirmed the payment on the record, but sources told BBC Wales that it had been agreed by Labour group members last Monday night.

It was understood that the payment had been negotiated with Ms Harrhy and that it included 10 months' salary worth £146,000, payment in lieu of notice of £43,800 and accrued annual leave of £19,200.

While she was off sick and after she was found fit to return, she had reportedly raised concerns about working relationships and trust relating to Labour leader Sean Morgan and a senior officer.

Sources said an investigation allegedly did not stand up the claims.

Officials were said to have argued that the cost of a settlement was cheaper than going through a more costly further investigation and facing a tribunal.

Harrhy left the authority the day after the settlement was agreed.

It comes as the council tries to save £45m over two years, with up to 600 jobs under threat.

Adrian Crompton leads Audit Wales, which has the task of ensuring Wales' public bodies spend money properly.

In a statement he told BBC Wales that the exit payment will form part of the council's financial statements for the financial year, 2024/25.

"My audit team, as part of their audit of those accounts, will consider this transaction and determine the extent of any audit work considered necessary," Mr Crompton said.

He added: “Prior to that, we will be speaking to the council to understand the rationale supporting the payment and whether there is a need for any further work at this stage.”

Mr Crompton has criticised how some settlements to public officials were made in the past.

Last year he said a decision making process around a £320,000 settlement for a museum boss - part of a row that ended up costing taxpayers £600,000 - was "fundamentally flawed".

In 2022 the auditor general said he could not be satisfied that a £80,519 pay-out to Dame Shan Morgan, the Welsh government's former permanent secretary, was "properly made".

He suggested she had not been entitled to some of the money under her contract.

A Caerphilly council spokesperson said: “The council works closely with Audit Wales on all matters relating to effective financial management and governance.

"We would welcome further dialogue on any aspect of our accounts to ensure compliance and transparency.”