Thurrock: Bankrupt council pays 'away from post' officers £129k

The chief executive Lyn Carpenter (left), who resigned in December, was paid £49,515 in salary and £9,803 in pension contributions while away from her usual duties

A bankrupt council paid a total of almost £130,000 this year to two top executives while they were away from their normal roles.

Thurrock Council in Essex has a £469m funding black hole and is discussing a government rescue package.

The Labour group said while employment law must be adhered to, the payments to senior staff away from their normal jobs was "galling".

The Conservative-run council has been approached for comment.

Thurrock issued a section 114 notice in December, effectively declaring itself bankrupt, following a series of failed investments.

The council, which serves a population of about 174,500 people, is planning to stop filling some job vacancies in order to save money.

• Bankrupt council proposes cost-cutting measures

• Council declares itself bust after failed investing

• Council reveals 'grave' £469m hole in budget

The council is also proposing a 10.1% hike in service charges for social housing, which include maintenance to lifts, doors and caretaking.

A planned social housing rent increase of 7% means an average one-bedroom home will cost tenants £82.54 per week, up from £77.14.

Amid these cost savings and planned service price rises, it has emerged tens of thousands of pounds has been paid to senior officers while they are either suspended or away from their substantive roles.

Payments to two officers who had stepped aside from their normal jobs was revealed in a Freedom of Information request lodged by the BBC.

The chief executive Lyn Carpenter was paid £49,515 in salary and £9,803 in pension contributions while she stepped aside from her usual duties.

She has since resigned.

Conservative-run Thurrock Council admitted £275m of taxpayers' money would be lost as a direct result of investments

The council previously admitted that a series of failed investments led to the £469m budget black hole - one of the largest ever reported by a UK local authority.

Investments worth about £275m had to be "written down" which, a spokesman for the council confirmed, meant the money had effectively been lost.

Sean Clark, the council's corporate director of resources, arranged a series of business deals that apparently failed to produce the expected returns.

The council said Mr Clark, who was suspended last September, was paid £58,556.47 in salary and £11,594 in pension contributions whilst away from his normal role so far this financial year.

John Kent, leader of the Labour group on the council, said: "This is galling - I want to see any investigations concluded as quickly and properly as possible.

"We have to comply with employment law, of course, and people understand that.

"But we also want to see progress so the council can start to normalise and focus on providing services to the people of Thurrock."

A "best value inspection" of the council is currently being carried out by Essex County Council, which has been appointed as commissioners for Thurrock Council by the government.