Glasgow 'Fat Cat' Probe - A Result!
The Herald is reporting that former Glasgow city council chief executive, Annemarie O'Donnell, is to pay back part of the £375,845 'golden goodbye' she received on leaving her post in 2024.
The CEO's payment was the subject of a 'fat cat payoff probe' which was highly critical of council officials and senior politicians.
More to follow, but here's a link to Hannah Brown's piece in the Herald
Annemarie O’Donnell to pay back money over £300,000 pension row
By Hannah Brown - The Herald
Former Chief Executive of Glasgow City Council Annemarie O’Donnell is paying back a sum of money linked to a £300,000 pension row involving her and a number of other senior officials.
The Herald understands this sum the former chief executive has to pay back is likely to total thousands of pounds as it is tied to a £317,000 payment the council had to make to the Strathclyde Pension Fund.
In a note to elected members leaked to The Herald this afternoon, the current chief executive Susanne Millar informed them this afternoon that the payment to her pension fund will be repaid to the council.
There will now be a reduction in the value of her pension.
It comes after Annemarie O’Donnell and other senior officials established a way give themselves enhanced pensions before leaving their jobs at the local authority.
O’Donnell received a £357,845 “in year” contribution to her pension, Elaine Galletly, former Director of Legal and Administration, received a £223,065 pension contribution and £59,971 for “compensation for loss of office”.
The letter leaked to The Herald: “I am writing to inform you of developments relating to the retirement of the former Chief Executive Annemarie O’Donnell.
“You will recall that Annemarie left the council in 2024 with immediate access to her pension. This required the council to make a payment, called ‘strain on the fund’, to Strathclyde Pension Fund (SPF). This payment to the Pension Fund was around three hundred thousand pounds.
“The council has now reached an agreement with Annemarie which has allowed that strain on the fund to be repaid to the council.
“The details of Annemarie’s pension are private to her and not visible to the council, beyond the details which are published in our accounts.
Ms Millar added: "I can say that Annemarie contacted SPF and the council last month asking to come to an arrangement whereby she would be treated as if she had simply left the council on normal pension arrangements which incur no additional cost to SPF or the Council. ]
"This would entail repayment to SPF of any additional sums paid to her since she left and the repayment of the strain on the fund by SPF to the council. Both these payments have now been made and appropriate disclosures will be made in the Council’s accounts in due course."
A report from March this year found the early retirement deal for Glasgow City Council’s former chief executive was not “lawfully approved” by the local authority.
Council leader Susan Aitken and city treasurer Ricky Bell raised concerns over the payments while questions were also raised through Freedom of Information requests.
The council carried out an initial review before instructing lawyers to investigate the exit packages of five staff members.
Brodies LLP found that the former chief executive’s application for early retirement “was not, on the face of it, lawfully approved in terms of the council’s Scheme of Delegated Functions” but that the applications for the other four staff members were.
Reacting to the pay back news, City Treasurer and Deputy Leader of the Council, Ricky Bell welcomed the news, however, stated it was "regrettable" that this ever took place.
The councillor told The Herald: "The independent investigation, commissioned by the Council’s political leadership, confirmed that the former Chief Executive’s enhanced pension was not lawfully authorised.
"We welcome her decision to repay the money and to give up future payments. It remains, however, regrettable that this episode ever happened in the first place.
"It is due to the diligence and persistence of the SNP and its City leadership, alongside the efforts of Council officers, that we have arrived at the point where the money has been repaid. Tomorrow, councillors will have the opportunity to vote on new safeguards to ensure such unauthorised practices are never repeated."
The council has confirmed with The Herald that the letter was sent to elected members this afternoon, They said would not provide any further comment at this moment in time.
Former Chief Executive of Glasgow City Council Annemarie O’Donnell is paying back a sum of money linked to a £300,000 pension row involving her and a number of other senior officials.
The Herald understands this sum the former chief executive has to pay back is likely to total thousands of pounds as it is tied to a £317,000 payment the council had to make to the Strathclyde Pension Fund.
In a note to elected members leaked to The Herald this afternoon, the current chief executive Susanne Millar informed them this afternoon that the payment to her pension fund will be repaid to the council.
There will now be a reduction in the value of her pension.
It comes after Annemarie O’Donnell and other senior officials established a way give themselves enhanced pensions before leaving their jobs at the local authority.
O’Donnell received a £357,845 “in year” contribution to her pension, Elaine Galletly, former Director of Legal and Administration, received a £223,065 pension contribution and £59,971 for “compensation for loss of office”.
The letter leaked to The Herald: “I am writing to inform you of developments relating to the retirement of the former Chief Executive Annemarie O’Donnell.
“You will recall that Annemarie left the council in 2024 with immediate access to her pension. This required the council to make a payment, called ‘strain on the fund’, to Strathclyde Pension Fund (SPF). This payment to the Pension Fund was around three hundred thousand pounds.
“The council has now reached an agreement with Annemarie which has allowed that strain on the fund to be repaid to the council.
“The details of Annemarie’s pension are private to her and not visible to the council, beyond the details which are published in our accounts.
Ms Millar added: "I can say that Annemarie contacted SPF and the council last month asking to come to an arrangement whereby she would be treated as if she had simply left the council on normal pension arrangements which incur no additional cost to SPF or the Council. ]
"This would entail repayment to SPF of any additional sums paid to her since she left and the repayment of the strain on the fund by SPF to the council. Both these payments have now been made and appropriate disclosures will be made in the Council’s accounts in due course."
A report from March this year found the early retirement deal for Glasgow City Council’s former chief executive was not “lawfully approved” by the local authority.
Council leader Susan Aitken and city treasurer Ricky Bell raised concerns over the payments while questions were also raised through Freedom of Information requests.
The council carried out an initial review before instructing lawyers to investigate the exit packages of five staff members.
Brodies LLP found that the former chief executive’s application for early retirement “was not, on the face of it, lawfully approved in terms of the council’s Scheme of Delegated Functions” but that the applications for the other four staff members were.
Reacting to the pay back news, City Treasurer and Deputy Leader of the Council, Ricky Bell welcomed the news, however, stated it was "regrettable" that this ever took place.
The councillor told The Herald: "The independent investigation, commissioned by the Council’s political leadership, confirmed that the former Chief Executive’s enhanced pension was not lawfully authorised.
"We welcome her decision to repay the money and to give up future payments. It remains, however, regrettable that this episode ever happened in the first place.
"It is due to the diligence and persistence of the SNP and its City leadership, alongside the efforts of Council officers, that we have arrived at the point where the money has been repaid. Tomorrow, councillors will have the opportunity to vote on new safeguards to ensure such unauthorised practices are never repeated."
The council has confirmed with The Herald that the letter was sent to elected members this afternoon, They said would not provide any further comment at this moment in time.
