AUDIT

EXCLUSIVE: Auditors look into chief's £327k payoff

Auditors are assessing an objection to Thanet DC’s accounts after an ex-councillor said they should declare a £327,000 severance payment to its former boss ‘unlawful’.

© maks lab/shutterstockcom

© maks lab/shutterstockcom

Auditors are assessing an objection to Thanet DC's accounts after an ex-councillor said they should declare a £327,000 severance payment to its former boss ‘unlawful'.

Grant Thornton has accepted Ian Driver's objection to Thanet's 2022-23 accounts over the deal with chief executive Madeline Homer.

Homer's departure came after a 2019 report following an external investigation found ‘substantial evidence' she was ‘responsible for creating and fostering a culture of overt bullying, intimidation, victimisation or humiliation' within Thanet DC.

Driver called on Grant Thornton to publish a report in the public interest about the circumstances surrounding the payment. 

He claimed the package was approved despite councillors having seen a confidential report, which revealed that over a four-year period several grievances had been made against Homer. 

Driver believes the payment to Homer was in breach of the statutory guidance on the making and disclosure of severance payments by local authorities in England, which requires councils to ensure they are not used to avoid management action or disciplinary processes.

He said: ‘During Homer's time as chief executive, there were grievances, whistleblowing complaints and disciplinary action, which resulted in several investigations and reviews by external lawyers and HR specialists. The costs associated with handling these various matters has been significant, with the latest estimate in excess of £730,000. This makes Homer's six-figure severance package look like a reward for bullying.

‘I hope my objection succeeds as it will expose the deeply embedded local government culture of covering up and paying off bullies at the taxpayers' expense, something which allows such appalling behaviour to thrive.'

South East regional organiser for trade union Unison, Mark Hammond, said council staff had been ‘absolutely furious' about the ‘massive pay-off'.

A council spokesperson said it would ‘not be appropriate to comment on the specific objection' but added: ‘Thanet DC in recent years has seen improving assurances from our auditors in relation to the organisation's financial management and renewed governance arrangements. Recommendations from the independent monitoring officer made in 2022 have been completed and there is a positive culture at Thanet DC.'

Homer, who is now an adviser to local authorities with regeneration, housing and transformation programmes, did not responded to a request for comment.

Grant Thornton declined to comment.

 

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