£120,000 golden handshake for council boss in 'secret' departure

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Monday, February 02, 2009
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This is Staffordshire

THE former chief executive of East Staffordshire Borough Council received a £120,000 golden handshake after she left the authority under a veil of secrecy, it has been officially revealed.

The Burton-based authority – which covers the Uttoxeter area – has issued a statement clarifying the financial details of Jeanette McGarry's sudden departure.

The council has confirmed that the payment to the former chief executive, pictured, was the equivalent of three months' basic pay in lieu of notice and 10 months' basic pay as compensation for loss of office.

The total sum paid to her was £121,333.33 but that was subject to the appropriate deductions for tax and National Insurance.

The costs of external advice and investigations in connection with this matter total £12,337.57, plus VAT.

Under national legislation, councils cannot take any action against a chief executive without first appointing a designated independent person to carry out a full investigation.

A council statement said: "This process usually takes at least six months. Chief executives normally remain suspended during this time.

"Sometimes the process takes considerably longer.

"The council was advised that the total external cost of carrying out such a process would be likely to be in excess of £160,000.

"In addition, the council would have to commit significant internal resources to the investigation and would have to function without a chief executive in the meantime."

Another authority has recently confirmed that a similar process cost that council more than £400,000.

The statement continued: "Having carefully considered the options available, in view of the cost to all parties and the length of time that the council would have been without a chief executive, the elected representatives decided that it was in the best financial and other interests of the people of the borough to agree severance terms with Mrs McGarry.

"All of the councillors at the meeting, from all political groups, voted for this option, other than two members who abstained."

The council says it is not able to disclose any information about the allegations against Mrs McGarry.

They say Section 40 of the Freedom of Information Act 2000, creates an exemption from disclosure of personal information if this would breach the council's obligations under the Data Protection Act 1998.

Under the Data Protection Act, the council is obliged to process personal data fairly and lawfully.

In doing so, the council must balance the legitimate interests of the public in accessing information against Mrs McGarry's right to privacy.

The statement sai d: "Following previous decisions of the information commissioner – such as a decision regarding the principal of Doncaster College earlier this year – the balance is clearly in favour of preserving Mrs McGarry's right to privacy.

"The council would be acting unlawfully if it disclosed this information at this time."

Mrs McGarry has given little away about the reasons for her decision to go.

She left the borough council on December 2 after joining the authority in April last year.

She said shortly after her departure: "I have enjoyed my time working in East Staffordshire and I am sad to leave.

"I am now seeking to develop my career in a different direction, building on my experience with the council."

Mrs McGarry, who is thought to live in the Birmingham area, was appointed chief executive in January last year and took up the position in April.

She stepped into the high profile job to replace former chief executive, Marie Ainsworth, who died from cancer.

Mrs McGarry had previously been corporate director of community services at Solihull Metropolitan Borough Council.

The borough council's corporate management team of Mahmood Azam and Andy O'Brien has taken charge until a replacement is found.

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  • Profile image for This is Staffordshire

    by paul, leigh

    Wednesday, February 04 2009, 9:40PM

    “well did she leave knowin she would get the money?.or did they get rid becourse she couldn't do the job?but in the end we pay for it .so maybe they should rewrite the contracts”

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