'Cover-up and corruption' claims as Glasgow City Council under fire over golden goodbyes
A stark report from the spending watchdog has found some of those that benefited from the exit payments approved the paperwork for the golden goodbyes.
Scotland’s largest local authority has been accused of a “cover up and corruption” after the SNP-led council came under fire from the spending watchdog for how it paid off senior officials.
A damning report from the Accounts Commission has found the processes, decisions and actions that allowed five senior officers at Glasgow City Council to be paid out for taking significant early retirement fell short of expected standards and behaviour. Warnings were issued that some of those that benefited from the exit payments approved the paperwork for the golden goodbyes.
Between 2021 and 2024, five senior officers left the city council, including the former chief executive, Annemarie O'Donnell, who received a £357,845 "in year" contribution to her pension.
Elaine Galletly, former director of legal and administration, was handed £223,065 in pension contributions and £59,971 for “compensation for loss of office”.
The council’s former solicitor, Carole Forrest, was given a £95,000 redundancy payment, while former adviser Anne Connolly received a package of £191,767.
Robert Anderson, head of human resources, received a pension and redundancy deal worth £147,654. Councillors were not able to scrutinise the exit packages with the process delegated to officials.
An investigation found Ms O’Donnell’s package was not "lawfully approved” in line with the authority's rules. But no evidence was found officials acted “improperly". Following a public backlash, Ms O’Donnell agreed to repay some of her “golden goodbye”.
But the Accounts Commission, in its report, has found the restructuring package was “dealt with in a manner inconsistent” with established key principles, “in particular selflessness, integrity and objectivity”.
The report adds: “The restructure report appears to have been approved by some individuals who then benefited from its proposals.
“This exhibits a failure to address and document potential conflicts of interest that should have been obvious to such senior and experienced officers and displays a lack of judgement in relation to how their actions adhered to the principles.”
The watchdog report adds “the absence of a clear document trail, setting out the decisions and approvals required for the restructure report, including the consideration of potential conflicts of interest and the need to involve councillors, is concerning”.
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Andrew Burns, deputy chair of the Accounts Commission, said: “The actions taken by a group of senior staff at Glasgow City Council fell short of the values and principles every public sector worker and councillor are expected to follow.
“There was a failure to address and document how potential conflicts of interest were considered. And a failure to demonstrate how the guiding principles of working in the public sector - in particular selflessness, integrity and objectivity - had been applied.”
Mr Burns added: “It is alarming to see reports which need to consider the lawfulness of actions within councils, and such circumstances do little to reassure taxpayers about how public money is being used.
“All councils need to undertake restructuring, particularly with financial pressures, growing demand and an ageing workforce. Given the issues highlighted in this report, the Accounts Commission will write to all council chief executives and leaders to highlight the importance of good governance, value for money and transparency in decision making.”
Scottish Conservative shadow finance and local government secretary, Craig Hoy, said: “This report could hardly be more damning in identifying what reeks of cover-up and corruption.
“Glasgow’s SNP-run council rode roughshod over the rules and, as a result, departing officials received eye-watering pay-outs with little to no oversight.”
He added: “It’s sadly typical of the way in which the Nationalists conduct themselves in office, with a worrying lack of accountability or concern for taxpayers’ money, while putting the interests of themselves and their cronies first.
“Glaswegians will be rightly furious that, while the SNP administration is slashing essential services and imposing inflation-busting council tax hikes, it found huge sums to hand out to fat-cat bureaucrats.”
Deputy leader of the council, Richard Bell, said: “The Accounts Commission’s findings illustrate exactly why the council leader and I first raised concerns about exit packages for senior officials last year – and why it was so necessary for the council to take quite extraordinary steps to establish what had gone on.
“While neither the independent, external review or this report from the commission make for comfortable reading, they do give us a base to build trust and confidence from – and, I think, they also serve as an important warning to other public bodies.
“Glasgow had already moved quickly to change processes and allow elected members proper oversight when senior officials leave the council, which is noted in this report.
“Members must now make sure the council reflects on the commission’s findings and uses them to drive forward a change in culture, which I know the current chief executive and her leadership team take very seriously.”
A council spokesman said: “We welcome this report, which reflects the findings of the independent investigation commissioned by the council. The commission’s findings will support the action the council is already taking to improve oversight and transparency and to rebuild trust; both within the organisation and with the public.”
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