‘Deeply concerning’: Watchdog’s verdict on Glasgow City Council golden goodbyes

Decision-making at Glasgow City Council that allowed five senior officers to leave their jobs with packages worth £1m fell short of standards for public servants, a report has found.

Early retirement and redundancy deals for former chief executive Annemarie O’Donnell and others – the ex-principal advisor to the chief executive, head of human resources and director of legal and administration – were awarded between 2021 and 2024.

They came to light after council leader Susan Aitken and city treasurer Ricky Bell raised concerns on the publication of unaudited financial statements which revealed £270,000 in redundancy payments and a £770,000 on pension costs.

A probe by legal firm Brodies found O’Donnell’s departure had not been “lawfully approved” and called for a change in processes.

Now the Accounts Commission has delivered its verdict on the situation.

A report released today says the restructuring proposals behind the exits “appear to have been approved by some individuals who directly benefited”. It states that, given the seniority of the departing officers, restructuring proposals should have been scrutinised by councillors.

It said the lack of that independent scrutiny and formal documentation on the details of the decision-making and evidence of value for the public purse is “deeply concerning”.

Every council leader and chief executive Scotland will now be contacted to prevent the situation happening again.

Andrew Burns, deputy chair of the Accounts Commission, said: “The actions taken by a group of senior staff at Glasgow City Council fell short of the values and principles every public sector worker and councillor are expected to follow. There was a failure to address and document how potential conflicts of interest were considered. And a failure to demonstrate how the guiding principles of working in the public sector – in particular selflessness, integrity and objectivity – had been applied.

“It is alarming to see reports which need to consider the lawfulness of actions within councils, and such circumstances do little to reassure taxpayers about how public money is being used.

“All councils need to undertake restructuring, particularly with financial pressures, growing demand and an ageing workforce. Given the issues highlighted in this report, the Accounts Commission will write to all council chief executives and leaders to highlight the importance of good governance, value for money and transparency in decision making.”

Aside from O’Donnell, the officials involved were director of governance Carole Forrest, adviser Anne Connolly, legal and administration head Elaine Galletly and Robert Anderson, head of HR. A report by Anderson covering the planned senior management restructure was sent to the chief executive in 2021.

In May it was reported that O’Donnell was to repay her former employers.

Glasgow City Council welcomed the report, saying: “The Commission’s findings will support the action the council is already taking to improve oversight and transparency and to rebuild trust; both within the organisation and with the public.”

Councillor Bell commented: “The Accounts Commission’s findings illustrate exactly why the council leader and I first raised concerns about exit packages for senior officials last year – and why it was so necessary for the council to take quite extraordinary steps to establish what had gone on.

“While neither the independent, external review or this report from the commission make for comfortable reading, they do give us a base to build trust and confidence from – and, I think, they also serve as an important warning to other public bodies.

“Glasgow had already moved quickly to change processes and allow elected members proper oversight when senior officials leave the council, which is noted in this report. Members must now make sure the council reflects on the commission’s findings and uses them to drive forward a change in culture, which I know the current chief executive and her leadership team take very seriously.”