Tower Hamlets slammed after chief lands £115,000 payout
PUBLISHED: 09:45 18 October 2013 | UPDATED: 09:45 18 October 2013
A town hall chief received a £115,000 payout, causing a government minister to accuse Tower Hamlets Council of "outrageous waste."
The council, which is facing budget cuts totalling £100million over three years, has been criticised by local government minister Brandon Lewis after it made the six figure payment last year.
The sum was paid to former interim chief executive Aman Dalvi after he took the local authority to an employment tribunal last year.
He subsequently took another top council job, earning an extra £119,000 as a corporate director for development and renewal.
The total amount he received from the council in the financial year 2012/13 – published in a public council document – topped £256,000 once pension contributions were added.
Mr Lewis described the payments as “an outrageous waste of taxpayers’ money.”
The average household income in the borough is less than £30,000, according to a council-backed report.
Council documents say the money was paid to Mr Dalvi for his role as interim chief executive, but it has since been confirmed it was made as part of an out of court legal settlement.
The chief executive position has since been scrapped as the town hall tries to trim its £1.2billion annual budget.
A spokesman said: “The council has complied with its statutory requirements in the preparation and publication of the annual accounts. We will not be commenting further.”
Mr Dalvi could not be reached for a comment.