A NEW head has taken over Caerphilly council after its acting chief executive was arrested by police.

Nigel Barnett acting chief executive and Anthony O’Sullivan were both arrested on suspicion of fraud and misconduct in public office.

Mr Barnett had been appointed to run the authority after Mr O’Sullivan had been suspended in March when questions were asked about senior officers’ pay rises.

Avon and Somerset police launched an investigation into pay at the authority after a Wales Audit Office report found that hikes of up to 20 per cent were unlawful.

Yesterday they confirmed two people have been released on police bail pending further enquiries.

Caerphilly Council refused to say what had happened to Nigel Barnett.

In a statement, which failed to mention either men, Sandra Aspinall acting deputy chief executive of Caerphilly council, who has now stepped up as the third head of the authority in as many months, said "that it is very much business as usual" at Caerphilly.

Mrs Aspinall said: "We have been informed by Avon and Somerset Police that two members of staff have been released on police bail.

"As acting deputy chief executive I will assume responsibility for leading the organisation until further discussions take place.

"I want to send a clear message to the community that it is very much ‘business as usual’ at Caerphilly council.

"We will continue to concentrate our efforts on delivering quality services to residents and these recent events will not affect our commitment to this goal."