Audit Scotland are to probe a redundancy package for a senior council official that could cost up to £800,000, Nicola Sturgeon has said.
The Sunday Mail how Janice Hewitt, the former chief officer of North Lanarkshire Health and Social Care, was given the six-figure redundancy payout after just over four years in the job.
The incredible deal was agreed despite North Lanarkshire Council having to cut janitor jobs, charge more for council tax and even increase the cost of burials to plug its budget deficit.
The size of the deal, which included a one-off £450,000 cash payment, has been described as “eye-watering” by critics.
Hewitt left her job in October after being offered “voluntary severance” by her bosses as part of a restructure.
And accounts published last week by the North Lanarkshire Health and Social Care board show the size of settlement she received.
Despite leaving halfway through the financial year, the 54-year-old was paid a full year’s salary of £131,076. She was also given compensation of £450,802 for “loss of office”.
The accounts also show that, with pension costs included, the true cost of the deal to North Lanarkshire Council could be more than£800,000.
The First Minister was questioned at FMQs by Richard Lyle MSP about the case.
Lyle, SNP member for Uddingston and Bellshill, asked: "What can be done, if anything, to stop these excessive payments being paid to local authority officials to leave their post early?"
Sturgeon said: "I understand that Audit Scotland have said they are aware of this payment and they will be looking at it as part of their audit work.
"I think this is only proper given the apparent scale of the settlement and I think it's understandable that questions are being raised by Richard Lyle and others.
"While the Scottish Government has no direct role in this matter, I'm very clear that there is a duty on all bodies to ensure that all public money is spent appropriately and to be able to justify the decisions they take.
"While Audit Scotland will be looking at the matter, I'm sure that the Accounts Commission will also be giving it consideration."
A North Lanarkshire Council spokeswoman said: "Senior level restructures have delivered £413,000 savings each year.
"The remuneration package was calculated in line with the council's procedures.
"Employees being made redundant are entitled to a contractual redundancy payment and to access pension entitlement in accordance with regulations.
"In addition, the council's rules state that restructure costs must be paid back within three years. In this case, the payback period is two years.
"So, from 2021, this is a saving of £132,301 every year."
