BLAENAU Gwent council’s financial statements from more than three years ago are set to be signed off, but inquiries into alleged ‘unlawful’ pension payments will continue.

Concerns over the council’s relationship with Silent Valley Waste Services, raised in September 2017, have held up the auditing of the statements for 2016/17 and 2017/18.

Audit Wales has now provided a modified audit opinion, saying the accounts present a “true and fair view” of the council’s financial position, except for pension payments relating to two senior officers who were also directors of Silent Valley Waste Services.

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The auditor general says these payments “appear to be contrary to law”, as separate pension accounts were not opened.

Blaenau Gwent council says there were “procedural errors” in the way payments were made, but it disputes that they were unlawful.

The council’s audit committee agreed to approve the statement of accounts at a meeting on Tuesday.

Cllr Steve Thomas, a former leader of the council, said he was ‘angry’ that councillors had not been provided information about the issue at an earlier stage.

“Members were not in the know about the issue of having that pension,” he said.

“I am speaking as a former leader of this council who has never been briefed about this issue.”

Cllr Wayne Hodgins said one of the officers concerned was the council’s then chief finance officer who was “put there to avoid us being in this position”.

Rhian Hayden, of Blaenau Gwent council, said the council accepts separate pension accounts should have been set up.

“We accept that we made a mistake in the treatment of the payments,” Ms Hayden said.

“But we still do not consider that the payments were unlawful.”

Cllr Dai Davies, the council’s deputy leader, said it is was “an extremely serious issue”, and provided assurance the issue is “not going to be forgotten” as investigations continue.

Michelle Morris, managing director of the council, said the authority has reviewed its governance arrangements with Silent Valley Waste Services and since put in place “improved arrangements”.

David Rees, of Audit Wales, said the council “did not in the past adequately put in place governance arrangements over the relationship between itself and Silent Valley”.

Mr Rees said the watchdog was likely to report further on the issue over pension arrangements, but that this would not change its opinion on the financial statements.

He added that there had been “significant changes and improvements” since made by the council.

The audit committee approved the statement of accounts and agreed to receive a further report from Audit Wales on the issue.