Pounds 250,000 'paid for silence of executive'
The chairman and chief executive of the Welsh Development Agency were questioned about the redundancy package by the cross-party public accounts committee, which is investigating irregular payments, including the hiring of women from a model agency. It follows a damning report by John Bourn, the Comptroller and Auditor General, on irregularities at the WDA, the like of which one senior Tory MP said he had never experienced in 20 years as a politician.
Mr Bourn reported to the committee that in June 1991, the agency agreed an early retirement package for A C M Price, its international director, comprising: a gratuity of pounds 21,350; compensation of pounds 64,258; and a pension of pounds 10,000 a year for 15 years, which was worth about pounds 169,000, according to an actuarial report.
Mr Price left in February this year, aged 50, and signed a confidentiality clause.
Alan Williams, the Labour MP for Swansea West, said: 'That is a lot of money to buy silence.'
Philip Head, the WDA chief executive, replied: 'There was no question of buying silence.'
Mr Williams said later: 'It was a quarter of a million - the price for silence.'
The Comptroller told the committee that Mr Price was appointed international director after the WDA's American consultant on inward investment had been fired, and had taken furniture which cost the agency pounds 53,288 but was worth considerably less.
During 1991, the WDA also appointed Neil Smith as director of marketing. In November this year, Mr Smith, an undischarged bankrupt who had served three prison sentences for deception, pleaded guilty to seven charges of forging and using references and curriculum vitae.
While working for the WDA, he paid a model agency pounds 3,330 for promotional work. The committee was told that one Sunday afternoon, Smith invited 11 women from the agency to his hotel room to interview them about their suitability for a WDA advertising promotion.
Robert Sheldon, Labour chairman of the committee, said: 'How on earth did such people come to be employed by the WDA?' Mr Head replied: 'Mr Smith was a con man. We were conned.'
The Comptroller also reported on the payment by the WDA of a rural conversion grant for craft workshops of pounds 16,895 to Gwyn Jones, shortly before he became chairman of the agency. It was subsequently found that part of the workshops had been converted for residential use, and Mr Jones had to repay pounds 3,379.
The Microsoft mogul told fans a few home truths during his Reddit AMA
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
£45000 - £50000 per annum + Excellent benefits: Ashdown Group: Lead Web Develo...
£21000 - £40000 per annum + Negotiable: Tradewind Recruitment: Key Stage 2 tea...
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£120 - £180 per day: Tradewind Recruitment: The Humanities Department of this ...