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Former BBC executive returned £375,000 payoff Former BBC executive returned £375,000 payoff
(35 minutes later)
Former senior BBC executive Roly Keating returned his £375,000 payoff from the corporation after parliament's spending watchdog branded the decision to award it "seriously deficient".Former senior BBC executive Roly Keating returned his £375,000 payoff from the corporation after parliament's spending watchdog branded the decision to award it "seriously deficient".
Keating, who was the BBC's director of archive content, left last year to become chief executive of the British Library.Keating, who was the BBC's director of archive content, left last year to become chief executive of the British Library.
His £375,000 payoff was one of a number of big-money severance packages to be scutinised by the National Audit Office which, in a damning report published on Monday, said the BBC had "breached its own policies on severance too often without good reason".His £375,000 payoff was one of a number of big-money severance packages to be scutinised by the National Audit Office which, in a damning report published on Monday, said the BBC had "breached its own policies on severance too often without good reason".
The NAO investigation revealed that neither the then director general Mark Thompson, nor the BBC's director of human resources Lucy Adams, had agreed the details of Keating's payoff despite previous claims to the contrary. The NAO investigation revealed that the then director general Mark Thompson and the BBC's director of human resources Lucy Adams had not both agreed the details of Keating's payoff, despite previous claims to the contrary.
When Keating was told of this he wrote a letter to the NAO, complete with a cheque for the entire net severance pay that he had received.When Keating was told of this he wrote a letter to the NAO, complete with a cheque for the entire net severance pay that he had received.
Friends described 51-year-old Keating, a relatively low-profile figure in his 29 years at the BBC, as an "entirely honourable person" and said it was "exactly the sort of behaviour you would expect from him".Friends described 51-year-old Keating, a relatively low-profile figure in his 29 years at the BBC, as an "entirely honourable person" and said it was "exactly the sort of behaviour you would expect from him".
A former controller of BBC2 and BBC4, Keating left his £250,000-a-year job for a less well-paid one at the British Library, which pays about £150,000, at a time when the BBC was making a number of redundancies and the future of his role was uncertain.A former controller of BBC2 and BBC4, Keating left his £250,000-a-year job for a less well-paid one at the British Library, which pays about £150,000, at a time when the BBC was making a number of redundancies and the future of his role was uncertain.
He asked the BBC to clarify his future role after being contacted by headhunters about a new job, the NAO said in its report.He asked the BBC to clarify his future role after being contacted by headhunters about a new job, the NAO said in its report.
"At this point, the BBC has not decided whether to make this manager's post redundant," said the NAO, which did not name Keating in the report."At this point, the BBC has not decided whether to make this manager's post redundant," said the NAO, which did not name Keating in the report.
The corporation decided to negotiate and sign a compromise £375,000 agreement "on the grounds that it believed the individual would not otherwise have accepted the job offer, which had a lower salary".The corporation decided to negotiate and sign a compromise £375,000 agreement "on the grounds that it believed the individual would not otherwise have accepted the job offer, which had a lower salary".
It included a £250,000 termination payment, equivalent to 12 months' salary, and a further six months' salary, £125,000, pay in lieu of notice. He was also paid £1,000 legal fees.It included a £250,000 termination payment, equivalent to 12 months' salary, and a further six months' salary, £125,000, pay in lieu of notice. He was also paid £1,000 legal fees.
"The finance case states that a deal has been agreed by the then director general Mark Thompson and the BBC's director of human resources Lucy Adams," said the NAO."The finance case states that a deal has been agreed by the then director general Mark Thompson and the BBC's director of human resources Lucy Adams," said the NAO.
"The BBC informed us that the director general and director of human resources now accept that there was no such agreement and that the finance case is wrong on this point."The BBC informed us that the director general and director of human resources now accept that there was no such agreement and that the finance case is wrong on this point.
"The process governing approval of the severance payment was seriously deficient.""The process governing approval of the severance payment was seriously deficient."
The NAO said Keating "had no knowledge" of the internal process that led to the payout and had subsequently paid it back.The NAO said Keating "had no knowledge" of the internal process that led to the payout and had subsequently paid it back.
"The individual has since written to the BBC stating that they would not wish to benefit from a payment that could not be demonstrated to be fully and appropriately authorised," said the NAO."The individual has since written to the BBC stating that they would not wish to benefit from a payment that could not be demonstrated to be fully and appropriately authorised," said the NAO.
"The individual enclosed with the letter a cheque for the net severance payment they received.""The individual enclosed with the letter a cheque for the net severance payment they received."
In a letter sent by Keating to BBC director general Tony Hall explaining his decision to return the money, he said: "You will understand that as a matter of principle I would never wish to benefit from a payment that could not be demonstrated to have been fully and appropriately authorised."In a letter sent by Keating to BBC director general Tony Hall explaining his decision to return the money, he said: "You will understand that as a matter of principle I would never wish to benefit from a payment that could not be demonstrated to have been fully and appropriately authorised."
Keating told Hall in the letter, dated 9 June this year: "You will be aware that I received a payment from the BBC last year under the terms of a compromise agreement which ended my 29 years of employment at the corporation.Keating told Hall in the letter, dated 9 June this year: "You will be aware that I received a payment from the BBC last year under the terms of a compromise agreement which ended my 29 years of employment at the corporation.
"I entered into and signed this agreement in the belief that the BBC had proposed it in good faith and for good reasons, and that it had been properly sanctioned and authorised."I entered into and signed this agreement in the belief that the BBC had proposed it in good faith and for good reasons, and that it had been properly sanctioned and authorised.
"Earlier this year I wrote to the National Audit Office offering any assistance they might find useful from me in connection with their study for the BBC Trust of senior management severance payments and benefits."Earlier this year I wrote to the National Audit Office offering any assistance they might find useful from me in connection with their study for the BBC Trust of senior management severance payments and benefits.
"I met with the NAO last month to share what I understood about the facts in my case, and to review the relevant draft section of their report for factual accuracy."I met with the NAO last month to share what I understood about the facts in my case, and to review the relevant draft section of their report for factual accuracy.
This week I was concerned to receive from the NAO a significantly revised final draft of this section incorporating new evidence, of which I was not and could not have been aware, concerning the BBC's internal process for approval of the payment to me.This week I was concerned to receive from the NAO a significantly revised final draft of this section incorporating new evidence, of which I was not and could not have been aware, concerning the BBC's internal process for approval of the payment to me.
"This evidence has led the NAO to observe that the process in this case was 'seriously deficient'."This evidence has led the NAO to observe that the process in this case was 'seriously deficient'.
"I therefore enclose with this letter a cheque payable to the BBC, amounting to the full sum I received as severance payment after tax was deducted by the BBC at source.""I therefore enclose with this letter a cheque payable to the BBC, amounting to the full sum I received as severance payment after tax was deducted by the BBC at source."
The NAO said it would not identify the individual concerned. The BBC declined to comment.The NAO said it would not identify the individual concerned. The BBC declined to comment.
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