I wrote to Audit Scotland on 16 December 2024 raising concerns about the use of public money to pay 'golden goodbyes' in Glasgow City Council.
The public spending watchdog took a month to respond and when they did Audit Scotland told me politely they had no remit in the matter and that 'everything was in hand' - see exchange of letters below.
Audit Scotland now say they will be opening their own investigation into the scandal which is good news, but from a public interest standpoint Audit Scotland should clearly have been on the case and taking action months ago.
I plan now to raise the issue with the Auditor General, Stephen Boyle.
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
