Auditors have allowed Pembrokeshire CC to go ahead with a severance payment to its chief executive after slashing more than £50,000 from it.
The change followed the Wales Audit Office (WAO) having on Tuesday deemed the payoff, understood to be worth some £330,000, unlawful because it had been calculated taking account of a pension supplement which the WAO had said in a ruling last January was itself unlawful.
That finding sparked a series of disputes that culminated in chief executive Bryn Parry-Jones losing a no confidence vote in September.
Two police investigations have found no evidence of criminality in the matter.
But WAO auditor Anthony Barrett initially halted the severance deal last Tuesday because. He said in an advice note to Pembrokeshire: “The council are relying on and have taken into account the unlawful pay supplements”.
A Pembrokeshire statement said leader Jamie Adams (Independent Plus), had subsequently heard from Mr Barrett that “there are a number of relatively simple steps the council could take to resolve the position”.
Mr Barrett today withdrew his notice to Pembrokeshire after he said all parties had agreed to a £52,760 reduction in the payment.
“I am pleased that Pembrokeshire council has removed items of unlawful expenditure from its settlement agreement with the chief executive, Bryn Parry-Jones,” Mr Barrett said.
“For this reason, I am withdrawing the advisory notice I served on Tuesday and the council is now free to proceed.”