Audit Commission takes Cardiff to court over payment packages

29 Jan 04
The Audit Commission in Wales is taking a legal dispute with Cardiff County Council to the High Court after the authority rejected claims that more than £2.5m in payments to leading officers and members was unlawful.

30 January 2004

The Audit Commission in Wales is taking a legal dispute with Cardiff County Council to the High Court after the authority rejected claims that more than £2.5m in payments to leading officers and members was unlawful.

The dispute centres on district auditor Janet Jones' investigations into payments to members, particularly special responsibility allowances, made between 1995 and 2001. It also relates to remuneration packages paid to Cardiff's chief executive and four leading members between 1996 and 1999. These were backdated, the auditor claims, and then used to justify the increases and backdating of allowances to members.

Jones is seeking a ruling on whether 'substantial items' in the full accounts for 1999/2000 and 2001/02 'are contrary to law.' She maintains that taxpayers have a right to know whether the substantial increases in members' allowances and the salaries of officers were within the law.

The council is 'taking issue' with the commission's findings, stating that it took legal advice and informed and consulted Jones on the payments.

In a statement, the authority said it was 'concerned' that Jones was now 'complaining' about matters which she had been aware of since 1995.

'Janet Jones was instrumental in complimenting the council concerning the system she now considers unlawful. Indeed, Janet Jones as district auditor closed and certified the council accounts containing many of the payments about which she now complains,' it stated.

The dispute has already reportedly cost the authority £1.2m in legal and financial advice. The bill for both sides for a High Court case could be in the region of £500,000.

Jones said she wanted the case heard at the earliest possible date and was seeking a meeting with the authority's legal team to agree a timetable.

Cardiff added that it was looking forward to 'having the whole matter clarified in public'.

PFjan2004

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