THE appointment of the city council's first permanent chief officer in 12 months was seen as a major step towards ensuring future progress and strong leadership.

But just two weeks on, it appears the decision has plunged the council into a potentially costly legal quagmire.

Less than 24 hours after John van de Laarschot's selection as the next chief executive, interim post-holder Chris Harman was not in work.

Two weeks on, he is still on sick leave and council sources say he is not expected to return.

Now it has emerged he is in negotiations with the authority to secure a pay-off.

With a £157,000 salary, a settlement in lieu of the standard three-month notice period for senior managers could cost taxpayers as much as £40,000.

While the talks continue, the council is still paying his wages, plus travel and hotel expenses for Mr van de Laarschot, who is now in Stoke-on-Trent part-time as an 'advisor'.

It is not yet clear whether the authority would have to compensate Torridge District Council to release Mr van de Laarschot early from his contract.

But it would certainly have to meet his £3,750 weekly wages earlier than it had planned.

These unexpected financial risks have emerged just weeks after councillors were warned of a predicted £17 million budget overspend.

The council's Non-Aligned Group spokesman, Councillor Mick Salih, said: "As councillors, we should have been told before now who is in charge and making decisions in Chris Harman's absence.

"We are the people who have to face the electorate and it is always the elected members who are held accountable for decisions about the way the council is run.

"The council leader and the cabinet also need to think about how the budget could be affected by this."

He added: "The sooner we can get Mr van de Laarschot up here the better, because we just seem to be ticking over."

BNP group leader Councillor Alby Walker, below, was also highly critical of the way the appointment situation has unfolded.

He said: "I had heard that Chris Harman was trying to obtain a pay-off to leave the council, but I would be totally opposed to him being offered any 'golden handshake'.

"I feel let down because I expected him to hold the reins until the new chief executive arrived.

"I'm not happy with Tom Macartney (director of regeneration) helping to make big decisions and I would prefer to see John van de Laarschot brought up here full-time as soon as possible. "I would rather pay Torridge to let him leave than pay Mr Harman."

Negotiations over a possible pay-off for Mr Harman have also been criticised by the West Midlands TaxPayers' Alliance.

Campaign agent Fiona McEvoy said: "This whole process could become a costly farce, with taxpayers left to pick up the bill.

"The amount being paid to the council's senior officers is ludicrous, but the potential extra cost of these disputes is staggering.

"People in Stoke-on-Trent don't pay their taxes just for them to be poured straight into the pockets of senior council officers."

Liberal Democrat group leader and cabinet member for resources, Councillor Kieran Clarke, is confident the council can resolve the situation relatively quickly.

He said: "We have John van de Laarschot here for a couple of days a week now, and Tom Macartney is also filling in, as he is the next most senior officer at the council.

"There probably won't be a problem in the short term if Chris Harman goes, but it just depends how quickly Mr van de Laarschot can move here permanently."