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Spending watchdog criticises Brian Sweeney's pension deal | Spending watchdog criticises Brian Sweeney's pension deal |
(about 17 hours later) | |
By Reevel Alderson Home affairs correspondent, BBC Scotland | By Reevel Alderson Home affairs correspondent, BBC Scotland |
Scotland's spending watchdog has criticised Strathclyde Fire and Rescue Joint Board for "systemic failures" over the retirement and re-employment of its chief officer, Brian Sweeney. | Scotland's spending watchdog has criticised Strathclyde Fire and Rescue Joint Board for "systemic failures" over the retirement and re-employment of its chief officer, Brian Sweeney. |
In a 32-page report Audit Scotland said the board's processes fell short of acceptable standards and governance. | In a 32-page report Audit Scotland said the board's processes fell short of acceptable standards and governance. |
It said the public could not have confidence in the board's decisions. | It said the public could not have confidence in the board's decisions. |
South Lanarkshire Council - the joint board's lead authority - said it would discuss the findings at a meeting. | South Lanarkshire Council - the joint board's lead authority - said it would discuss the findings at a meeting. |
The report also criticised Mr Sweeney for co-authoring a report suggesting his retirement and re-engagement. | The report also criticised Mr Sweeney for co-authoring a report suggesting his retirement and re-engagement. |
This was a highly contentious arrangement for the most senior officer of Scotland's largest fire and rescue service. | This was a highly contentious arrangement for the most senior officer of Scotland's largest fire and rescue service. |
'Genuine desire' | 'Genuine desire' |
It meant he was able to take a lump sum from his pension pot and draw further cash from it while effectively retaining his job. | It meant he was able to take a lump sum from his pension pot and draw further cash from it while effectively retaining his job. |
Possible tax liabilities discovered after the deal was made mean a total of £235,000 has been set aside - but to date no money has been paid out. | Possible tax liabilities discovered after the deal was made mean a total of £235,000 has been set aside - but to date no money has been paid out. |
The Audit Scotland findings were commissioned in response to a report from the Controller of Audit. | The Audit Scotland findings were commissioned in response to a report from the Controller of Audit. |
In June 2009, Strathclyde Fire and Rescue Board, which has 34 members representing 12 local authorities, approved the retirement and re-employment of Brian Sweeney on a fixed term contract. | In June 2009, Strathclyde Fire and Rescue Board, which has 34 members representing 12 local authorities, approved the retirement and re-employment of Brian Sweeney on a fixed term contract. |
Audit Scotland accepted there may have been a "genuine desire" by members of the board to retain Mr Sweeney. | Audit Scotland accepted there may have been a "genuine desire" by members of the board to retain Mr Sweeney. |
It said this may have led to less than full consideration of the other choices open to them; there was no business case fully setting out alternative options. | It said this may have led to less than full consideration of the other choices open to them; there was no business case fully setting out alternative options. |
The report said: "It was inappropriate that Mr Sweeney was a co-author of the June 2009 report which proposed his retirement and re-engagement. | The report said: "It was inappropriate that Mr Sweeney was a co-author of the June 2009 report which proposed his retirement and re-engagement. |
"It was also inappropriate that he was present during discussion at the board meeting, given that he had a direct interest, and the clerk should have advised the board of this." | "It was also inappropriate that he was present during discussion at the board meeting, given that he had a direct interest, and the clerk should have advised the board of this." |
After the arrangement was made, it was discovered Her Majesty's Revenue and Customs (HMRC) could charge the board £29,000 for an "unauthorised payment". | After the arrangement was made, it was discovered Her Majesty's Revenue and Customs (HMRC) could charge the board £29,000 for an "unauthorised payment". |
And in April 2011, the board agreed to set aside up to £206,000 to pay Mr Sweeney's potential personal liability for that charge. | And in April 2011, the board agreed to set aside up to £206,000 to pay Mr Sweeney's potential personal liability for that charge. |
'Lack of transparency' | 'Lack of transparency' |
The report said: "Processes in place to support the board in such an important decision in April 2011, to meet the personal tax liabilities of the chief fire officer - and the decision preceding it in 2009 - were inadequate to allow the public to have confidence in these decisions." | The report said: "Processes in place to support the board in such an important decision in April 2011, to meet the personal tax liabilities of the chief fire officer - and the decision preceding it in 2009 - were inadequate to allow the public to have confidence in these decisions." |
John Baillie, who chairs the Accounts Commission, said: "The problem was that the board made decisions without considering other options, with incomplete information and a lack of transparency. | John Baillie, who chairs the Accounts Commission, said: "The problem was that the board made decisions without considering other options, with incomplete information and a lack of transparency. |
"There are reminders here for local authorities and perhaps all public bodies in Scotland on governance and transparency and on how they conduct their business." | "There are reminders here for local authorities and perhaps all public bodies in Scotland on governance and transparency and on how they conduct their business." |
A spokesperson for South Lanarkshire Council said: "The board notes the findings published by the Accounts Commission. | A spokesperson for South Lanarkshire Council said: "The board notes the findings published by the Accounts Commission. |
"Arrangements will be made for these findings to be discussed at a future meeting of the board." | "Arrangements will be made for these findings to be discussed at a future meeting of the board." |
A Scottish government spokeswoman said: "This was entirely a matter for Strathclyde Fire and Rescue Joint Board. We welcome this report and expect all boards to follow proper procedures and ensure they are fully informed before making decisions." |
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