GLASGOW — A financial watchdog has sharply criticised Glasgow City Council after five senior officials shared more than £1m in retirement and redundancy packages approved without independent scrutiny. The Accounts Commission said the arrangements, which included former chief executive Annemarie O’Donnell, highlighted serious failures in transparency and governance.
The payouts, made between 2021 and 2024, came as the council faced years of budget cuts and efforts to save money. The Commission’s report warned that those who approved the restructuring directly benefited from it, creating what it called an “obvious conflict of interest.”
Lack of Oversight
According to the Commission, the senior management restructuring plan was prepared in 2021 by Robert Anderson, then head of HR, and signed off by senior officials. The changes paved the way for the departures of five executives at a combined cost of £1.03m, including £268,000 in redundancy payments and £770,000 in pension liabilities.
Among those who left were O’Donnell, Anderson himself, governance director Carole Forrest, principal adviser Anne Connolly, and legal head Elaine Galletly. Their exit packages ranged from £95,000 to £317,000.
The report found that councillors were not consulted and no external checks were carried out. It concluded that the lack of oversight represented “poor judgment” and fell short of expected standards of integrity and accountability in public service.
Chief Executive’s Departure Questioned
Particular criticism was levelled at O’Donnell’s retirement in May 2024, aged 59, which was justified under the restructuring as an “efficiency measure.” The watchdog said the explanation was “at best, unclear,” noting the chief executive’s role remained within the council after her departure.
Her exit, which would have cost £317,000 in pension contributions, has since been partially remedied after she agreed to repay the sum. Other payouts included £192,000 for Connolly, £148,000 for Anderson, and £283,000 for Galletly.
Independent Review and Reactions
An independent review by law firm Brodies, later used by auditors, found no evidence of deliberate misconduct but warned the process “gave the appearance of a conflict of interest.” It also concluded that O’Donnell’s package was not lawfully approved.
Andrew Burns, deputy chair of the Accounts Commission, described the findings as “alarming.” He said taxpayers would be deeply concerned that senior figures had failed to apply principles of “selflessness, integrity and objectivity.”
Council deputy leader Richard Bell admitted the revelations were uncomfortable but insisted reforms had been introduced to strengthen oversight of senior staff departures. “This report must serve as a warning to other public bodies,” he said.
Scottish Conservative finance spokesman Craig Hoy went further, branding the report “damning” and accusing the SNP-led administration of allowing “eye-watering payouts with little to no oversight.”
What Happens Next
Glasgow City Council said it has already taken steps to improve scrutiny, with elected members now overseeing all senior staff exits. The Accounts Commission stressed that other councils should take note to avoid similar controversies.
The episode has reignited debate over governance standards in Scotland’s largest local authority, underscoring the importance of robust checks on how public money is spent at a time of financial strain.
