26 October 2007
A council that was at the centre of a row over a redundancy and retirement package for its chief executive has been criticised for a lack of openness caused by 'unduly close' relationships between political and managerial leaders.
In a damning Best Value audit report issued last week, the Accounts Commission, the local government watchdog for Scotland, said the former
Labour-run East Lothian Council had no financial strategy and did not have a systematic approach to the management of assets.
The commission found there was an informal approach to conducting council business with many meetings held in private. 'There has been informal decision-making and a lack of openness and transparency caused by relationships between political and managerial leaders being unduly close,' the report stated.
Before the council election in May, the council agreed to a deal giving chief executive John Lindsay a redundancy payment of £149,000 on top of a £155,000 retirement lump sum. This was justified on the grounds of the restructuring of senior management.
Following a critical report by auditor general Bob Black, who found the council had fallen 'a long way short of the standard expected by public bodies,' the £149,000 payment was rescinded by the incoming Scottish National Party-Liberal Democrat administration. Lindsay stood down and a new chief executive was appointed.
In its Best Value and Community Planning audit report, the commission said the council had many inherent advantages. Its area had relatively high employment and good life expectancy rates, low crime, good transport links and an attractive environment.
It was therefore of concern that the council had made such limited progress in establishing Best Value, the report stated. The council also had weaknesses in its financial stewardship. 'It has low levels of reserves, relies on the housing revenue account to fund budget gaps and has no long-term financial strategy,' the commission pointed out.
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