Bolton Council criticised by its own auditors for handling of ex-chief executive Paul Najsarek's shock exit and £90,000 pay-off

The local authority’s own auditors said Paul Najsarek’s contract was flawed because it did not include a six-month probationary period.

Mr Najsarek left as the authority’s top officer last November after just five months in post.

After a seven-month investigation by The Bolton News it was revealed that he was given a taxpayer-funded severance package of £90,000.

Now, in its annual audit report, KPMG has criticised aspects of how the severance agreement was arrived at.

And they have made recommendations following the contract Mr Najsarek had been given when he joined the authority early in 2015.

The report said: “The authority should ensure that probation periods are inserted into all contracts for new employees and should ensure that objectives for all members of staff are agreed immediately upon appointment to enable clear measurement of their achievement at regular intervals.”

Council leader Cliff Morris insisted that all the recommendations made by KPMG were already being put in place.

But he admitted he was ‘as surprised as anyone’ that a probation period had not formed part of Mr Najsarek’s deal.

He said: “I assumed that would have been included, as it is for all our staff.

“Unfortunately, by the time that came to light, the person responsible for drawing up the contract had left the authority.

“But that is being put in as a must for future arrangements.”

Bolton Council says that its head of human resources is drafting a policy regarding statutory officers and severance, which is due to be published in March.

The council also told the auditors that ‘it has always been its policy to include a six month probationary period for new employees’ and pledged: “We will review the process for ensuring this occurs in every instance.”

The KMPG report added: “Whilst senior officers did consult with senior council members prior to negotiating the compensation to the former Head of Paid Service, there was no group or committee in the authority’s management structure or scheme of delegation which easily lent itself to managing this process.

“Whilst accepting these issues are rare, the authority should establish a clear process for debating these situations, the evaluation of possible options and the agreement of severance payments, in particular those relating to statutory officers.”

The auditors were, however, satisfied that the amounts paid to Mr Najsarek had been ‘accurately disclosed’ in financial statements.

They felt the amounts did not constitute a ‘significant risk to its ‘value for money conclusion’.

But Bolton’s Conservative Group leader, who chairs the council’s audit committee, accused the council of fostering “a culture of arrogance and complacency”.

He said: “KPMG’s report raises some very serious concerns over Labour’s handling of the chief executive’s pay-off.

“The allegations of a lack of transparency with final decisions made by a chosen few behind closed doors displays a culture of arrogance and complacency within the council’s Labour leadership - consulting when they absolutely have to in order to tick a box, but ultimately adopting a ‘we’ll do just as we like and who’s going to do anything about it’ attitude.”

Cllr Greenhalgh said serious questions still remained unanswered over “basic failures in the drawing up of the contract, the lack of probation clauses, and conditions relating to his relocation to Bolton, highlighting another culture of lack of accountability within Bolton”.

He said: “What was the real reason Paul Najsarek left? Was it solely the fact he would not relocate to Bolton or was there a complete breakdown between the chief executive and the leadership of the council with a disagreement over proposals the chief executive put forward to fundamentally change the way the council operated?

“Only those involved in those final conversations know, but the money Paul Najsarek received as a result of those conversations belonged to the people of this town, and they have a right to know what actually went on.”

UKIP leader Cllr Sean Hornby added: “When what happened with Mr Najsarek happened, all the political leaders should have been sat down and informed and able to have a discussion.

“But this council is a dictatorship in my opinion and we feel the only reason this came to light was because of the hard work and determination of The Bolton News.”

Council leader Cllr Morris, in response to Cllr Greenhalgh’s comments, said: “I am very disappointed in his reaction because both Cllr Greenhalgh and his deputy leader were involved in discussions prior to the decision being made about Paul Najsarek. So they were well aware.

“I can assure everyone that there was no breakdown in the relationship.

“Mr Najsarek’s departure came about because of the issue of moving to Bolton.

“This was the first time this has ever happened and I very much hope it never happens again.”