Extraordinary Minehead Town Council meeting over disputed payment abruptly postponed

Last night’s meeting (June 13), of Minehead Town Council (MTC), had been called after it had emerged the council was found to have paid a financial settlement to a former employee that was not 'properly authorised', according to an independent auditor's report.

The auditor, Grant Thornton UK LLP, recommended the matter be discussed at full council, and the Quaker Meeting House in Bancks Street saw a large turnout from members of the public who were ready to hear the debate.

However, with town clerk Sue Sanders having recently stepped down and a locum clerk proving unavailable, one of the town council's administrative staff seemed set to deputise.

But within moments of new mayor Cllr Norman Hercock opening the meeting, Cllr Terry Venner recommended postponing the discussion.

"With no disrespect meant to Julie, we need a qualified financial officer and town clerk for this meeting to go ahead," Cllr Venner said.

"I propose we postpone the meeting - unless we do this correctly it is a sham and I won't be a part of it."

Cllr Hercock swiftly postponed the meeting until June 22, while one member of the public was heard describing the proceedings as 'a farce'.

Speaking to the County Gazette after the meeting, Cllr Hercock said the council would bring in a locum clerk so that the meeting could go ahead.

The payment in question relates to a dispute between MTC and a former employee which took place in 2016/17.

According to the auditor's report, the dismissed employee made an unsuccessful appeal against the decision and following the dismissal, sought redress through an employment tribunal.

The council and individual sought mediation through the Advisory, Conciliation and Arbitration Service (ACAS) and an agreement was made where the employee was paid what the auditor’s report described as a ‘significant sum’ as a financial settlement, without admission of liability.

This compromise agreement included a confidentiality clause.

However, the matter was never brought before full council and therefore, according to the independent's auditors findings: "The payment of the financial settlement to the former employee was not, in our view, properly authorised and may therefore be unlawful.

"In order to be lawful, all the council's expenditure needs to be properly authorised and in accordance with the rules set down in the Standing Orders and Financial Regulations.

"This is of even greater importance for an unusual payment such as this."

The former town clerk, Sue Sanders, told auditors the reason the decision was not taken to full council is because it was subject to a confidentiality agreement, and that the council had previous experience of matters being discussed in an exempt session being reported to the press.

Given the risk a similar disclosure could undermine the confidentiality clause within the agreement, the staffing committee decided it would discuss the matter outside the committee.

However the auditor states: "We do not accept that this is an acceptable reason - the matter could still have been discussed at full council in a private session, with appropriate advice given to councillors on the confidentiality of the information and potential implications of that information being shared more widely.

"Irrespective of the provisions in the financial regulations, we would in any case expect an unusual payment such as this would be approved by full council."

The auditor concluded that all the parties acted in good faith but recommended the matter be discussed at full council.

Having held a private meeting of the full council on May 22 where the issue was retroactively discussed and members voted to ratify the payment, a pre-prepared statement shown to press from Cllr Hercock shows that having summarised the auditor's report, the intention was 'to have no debate or questions as the issue has been resolved'.