This report has been issued in the public interest under section 22 of the Public Audit (Wales) Act 2004 (the 2004 Act). The 2004 Act requires me to consider whether, in the public interest, I should make a report on any matter which comes to my notice in the course of the audit, in order for it to be considered by the audited body or to be brought to the attention of the public.
I have issued this report to draw the public’s attention to a decision of Carmarthenshire County Council (the Council) that, in my view, was unlawful. The Council cannot use its powers to set reasonable remuneration for the avoidance or mitigation of the effect of pensions legislation. There were also failings in governance arrangements and inadequacies in the processes to determine the pay of senior officers which also render the decision unlawful. I believe it is important that the public has a full and proper awareness of the events concerning the Council. I also consider it appropriate to give the Council an opportunity to explain the important steps it has taken to improve its governance arrangements and to ensure that the risk of such failures recurring is reduced.