Fat Cats and Scotland's Public Spending Watchdog (May 15, 2025)
I have written to Scotland's Auditor General, Stephen Boyle, about the scandal of the 'golden goodbye' payments and 'fat cat' probe in Glasgow City Council.
Letter below along with an exchange of correspondence with Audit Scotland from December 2024 and January 2025.
Dear Stephen Boyle
Glasgow City Council - 'Golden Goodbye' Payments
I understand Audit Scotland has launched an investigation into 'golden goodbye' payments at Glasgow City Council (GCC) after a probe conducted by Brodies Solicitors and Douglas Ross, KC.
I would be grateful to know the scope and remit of this investigation because I have raised the issue of 'golden goodbye' payments with Audit Scotland previously, most recently on 16 December 2024.
My concern then, as now, is that a group of senior officials at GCC put forward what looked like a highly artificial restructuring proposal which, if approved, would have allowed them all to leave the council’s employment with large ‘golden goodbye’ payments - without any democratic/public oversight.
Even more bizarrely, the council’s chief executive was included in this group of 'leavers' and the proposal was justified by a scheme of delegation operated by the chief executive herself - to my mind a conflict of interest which stood out like a proverbial sore thumb.
I have complained previously to Glasgow City Council about this scheme of delegation and its inherent lack of oversight/accountability - my letter of 16 December 2024 refers.
After taking a month to respond, Audit Scotland's correspondence unit advised there was nothing to get excited about because these ‘golden goodbye’ payments would be picked up and addressed, but only 'if necessary' and as part of the annual audit process - as if, on the face of things, there was nothing obvious to be concerned about.
I have to say Audit Scotland’s response seemed complacent and laid back to me at the time - even more so now given recent developments - and I certainly expected a much more animated response from Scotland's public spending watchdog.
I look forward to hearing from you regarding the ongoing investigation and would be grateful if you can also explain why my original letter to Audit Scotland in December 2024 was dismissed in such a casual, peremptory fashion.
Kind regards
Mark Irvine
From: Correspondence <correspondence@audit-scotland.gov.uk>
To: markirvine@compuserve.com <markirvine@compuserve.com>
Sent: Wednesday, January 15, 2025 at 01:22:12 PM GMT
Subject: RE: Glasgow City Council - 'Fat Cat' Probe
Good afternoon
Thank you for your email of 16 December to the Auditor General. Your email has been passed to Audit Scotland’s correspondence team, who manage issues of concern raised with us about the public bodies we audit on behalf of the Auditor General and the Accounts Commission. Please note that the Auditor General has no remit over councils in Scotland. The Accounts Commission is the body responsible for holding local government to account in Scotland, and appoints auditors to carry out independent external audit of councils on its behalf.
I have shared your correspondence with the independent external auditors who audit Glasgow City Council on behalf of the Accounts Commission. The auditors have advised that that the balances referred to within the Council’s 2023/24 unaudited accounts will be subject to audit. This will be covered in the auditor’s next Annual Audit Report on the council and its 2023/24 accounts, which they anticipate publishing in Spring 2025.
If the annual audit process identifies any issues of significant concern, we will determine whether further reporting is required.
Kind regards
R - for Audit Scotland
December 16 2024
Dear Stephen Boyle
Glasgow City Council - 'Fat Cat' Probe
I am sure you are aware of the independent investigation announced by Glasgow City Council (GCC) after its outgoing Chief Executive (Annemarie O'Donnell) was awarded a 'golden goodbye' worth £357,000 which meant she could retire early without the need to accept a reduction in her pension benefits.
In effect the SNP led City Council used public funds to make a gift of £357,000 to its highest paid official which to my mind is a scandalous use of council taxpayers' money.
I raised the matter of 'golden goodbyes' with Glasgow City Council and Audit Scotland in 2018 when GCC's official accounts showed that the Council had approved a payment of £120,079 to its outgoing Finance Director (Lynn Brown) in order for her retire early, again without the need to accept a reduction in her pension benefits
The Council claimed that this extraordinary payment was approved by the Chief Executive at the time (Annemarie O'Donnell) under a recognised Scheme of Delegation and that AO'D's decision had political approval from a prior referral to the Council's Executive Committee in 2015.
In 2024 Annemarie O'Donnell appears to have benefited from a similar process except to a much greater extent given the eye-watering £357,000 sum involved.
I have asked GCC to explain who took this decision as it would normally require the same kind of political approval referred to by the Council in connection with Lynn Brown's departure in 2017/18, ie approval from a body like the Council's Executive Committee.
Glasgow City Council has 28 days to respond to my freedom of information (FoI) request which was submitted on 04 December 2024.
I enclose my previous correspondence with Glasgow City Council and Audit Scotland from 2018 for your information and future reference.
I would be grateful if Audit Scotland can look into what is now a matter of considerable public interest and look forward to your reply.
Kind regards
Mark Irvine
