DISGRACEFUL

Two councils acted unlawfully by letting chief executives opt out of a pension scheme to avoid potential tax payments, the Wales Audit Office says.

Pembrokeshire's Bryn Parry Jones and Carmarthenshire's Mark James had been given cash payments in lieu of employer pension contributions.

Dyfed-Powys Police said the force was in discussions with the auditors.

Calls have been made for resignations or instant dismissals over the matter.

The councils have said they are considering the public spending watchdog report which said that both authorities had acted unlawfully to allow the chief executives to opt out of the Local Government Pension Scheme (LGPS) to avoid potential tax payments.

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Key facts

• Decision passed in Nov 2011 by Carmarthenshire's executive board, without it appearing on the agenda, to give Mr James first payment
• Mr James launches libel action against blogger Jacqui Thompson arrested after filming a council meeting on her mobile phone
• He won and Ms Thompson paid costs of £23,217
• Her own attempt to counter sue for libel was rejected
• Since 2012, Carmarthenshire has paid out more than £26,000 in external legal costs under decision to indemnify its chief executive
• In Sept 2013 the Welsh government was asked if it approved payments in lieu meanwhile the audit office refused to approve both councils accounts for 2012-13
• In Jan 2014, the audit office says both councils acted unlawfully by letting chief executives opt out of a pension scheme to avoid potential tax payments
• By March 2014, £51,011 will have been paid to Pembs chief Mr Jones and one other senior officer

Mr James was also unlawfully given an indemnity against potential libel costs.

Assistant auditor general Anthony Barrett said: "Carmarthenshire council has acted unlawfully on two fundamental issues, both of which the public need to be fully aware of.

"The authority has taken decisions and used taxpayers money in areas that they do not have the legal powers to do so."