Council backs £100k+ payoffs for head of legal and deputy chief exec

The Head of Legal Services and the Deputy Chief Executive at Caerphilly County Borough Council will each receive six-figure pay-offs and depart from the authority after a number of years on special leave.

The pay-offs were agreed at a meeting of the full council last night (31 October). Head of Legal Dan Perkins will receive £127,000 and Deputy Chief Executive Nigel Barnett will receive £171,000.

The matter dates back to two decisions of the council five years ago in relation to pay structures for 20 senior managers and the buy-out of annual leave and essential user car allowances.

The Wales Audit Office declared the decisions to be unlawful and issued two public interest reports, the findings of which were accepted by the local authority.

A police investigation into the pay structure decision led to Perkins and Barnett being charged, along with Chief Executive Anthony O’Sullivan, with misconduct in public office.

These charges were dismissed in October 2015.

The council’s Investigating and Disciplinary Committee decided in March this year, having received a report from a preliminary investigator in 2016, that there were some disciplinary allegations in respect of each of the three officers that should be referred to a Designated Independent Person (DIP) for formal investigation.

A number of other allegations were dismissed by the committee and a report prepared for this week’s meeting noted that it was likely all three officers would vigorously refute and defend the remaining allegations against them.

The council has spent more than £2m on the matter, including £500,000 in legal costs during the 16 months it took for the preliminary investigation.

A report prepared for this week’s meeting said the cost of settlement would be less than the cost of continuing with the investigation. The cost of employing the services of the DIP alone was expected to be in the region of £100,000.

In a statement issued after the meeting last night Caerphilly CBC said: “This draws to a close a most difficult period for them [Perkins and Barnett], and the council.

“There has been considerable public interest in this uniquely difficult matter and in order to be open and transparent the council wishes to make it known that a financial settlement has been agreed with both officers as compensation for the loss of their employment and on condition that this brings matters to a close.

“In the case of Mr Barnett this payment is for the sum of £171,000 and for Mr Perkins the sum of £127,000. In both cases, this is considered to be much less than would have been the cost of continuing with a disciplinary investigation by a Designated Independent Person which could well have taken a further twelve months.”

The council added that it did not have the ability to deal with cases such as this as it would in other situations because the officers were subject to statutory protection conferred by legislation and the matter could only be dealt with by appointing a Designated Independent Person as required by the relevant law. [This procedure has been withdrawn in England but remains in force in Wales]

It said: “We would like to make clear that they have fully cooperated with the council during a lengthy preliminary investigation. We would particularly like to remind everyone that the criminal charges which had been brought against them, and which have been so heavily publicised, were dismissed by the court and that it would be wrong for any suspicion or stigma attached to that process to remain in anyone's mind.

“We sincerely wish both of them well for the future.”