Watchdog to review North Lanarkshire Council's '£800K payout'

A pay-off for a senior council official that could cost up to £800,000 will be investigated by Audit Scotland, Nicola Sturgeon has said.

Janice Hewitt, a former assistant chief executive at North Lanarkshire Council, took voluntary redundancy last year.

She is reported to have received a full year's salary worth more than £130,000 plus compensation of £450,000. Pension costs could also add to the total.

Ms Sturgeon said Audit Scotland was aware and would review the payments.

She was asked about the settlement during First Minister's Questions by SNP MSP Richard Lyle.

'Excessive payments'

He asked: "What can be done, if anything, to stop these excessive payments being paid to local authority officials to leave their post early?"

Ms Sturgeon replied: "I understand that Audit Scotland have said they are aware of this payment and they will be looking at it as part of their audit work.

"I think this is only proper given the apparent scale of the settlement and I think it's understandable that questions are being raised by Richard Lyle and others.

"While the Scottish government has no direct role in this matter, I'm very clear that there is a duty on all bodies to ensure that all public money is spent appropriately and to be able to justify the decisions they take.

"While Audit Scotland will be looking at the matter, I'm sure that the Accounts Commission will also be giving it consideration."

Future savings

North Lanarkshire Council said Ms Hewitt took redundancy as part of a senior level restructuring that was saving the authority more than £400,000 a year.

A spokeswoman said: "The remuneration package was calculated in line with the council's procedures.

"Employees being made redundant are entitled to a contractual redundancy payment and to access pension entitlement in accordance with regulations.

"In addition, the council's rules state that restructure costs must be paid back within three years. In this case, the payback period is two years. So, from 2021, this is a saving of £132,301 every year."