A COUNCIL is set to take legal action against the family of a dead former chief executive in a bid to recoup £281,155 in “potentially unlawful payments”.

Castle Point Council unanimously voted in favour of pursuing the estate of late chief executive David Marchant on Wednesday night as part of an investigation into more than £1.1million in payments made to senior staff.

Between 2012/13 and 2021/22 £1,153,328 was paid out to senior council staff, sparking a major investigation after external auditors were unable to sign off the council’s audit.

Following the meeting on Wednesday night, the council has agreed to write off £872,173 as “unrecoverable” but will pursue the money paid to Mr Marchant as “additional payments to the flexible retirement scheme through annual leave buy back and performance related pay”.

It has been claimed payments were awarded by Mr Marchant “to himself” before his death in March 2021.

David Blackwell, leader of Castle Point Council, said: “Following consideration of the report to full council and advice from the council’s legal advisers, the council has taken the decision to pursue recovery of £281,155 paid to the late chief executive.

Unfortunately, we have had to make the difficult decision to write off £872,173, of which there is no reasonable prospect of recovery. Needless to say, like many of my fellow councillors and residents, I am deeply angered by what happened in the past. We have already put in place procedures to ensure this cannot happen again at Castle Point Council.”

An earlier report revealed the value of payments made through a flexible retirement scheme, dating back to 2012/13, for Mr Marchant through an “annual leave buy back” scheme totalled £201,966. In addition to this, authorised performance payments made by Mr Marchant to himself totalled £79,189.

Documents reveal “no policy framework” existed for the former payments and there is no evidence members knew about them.

People’s Independent Party leader and deputy leader of Castle Point Council, Warren Gibson, said: “As councillors our primary concern is to protect the council and its finances, and its ability to remain in control of its future.

“This we believe we have done. We have also done what we believe is right, both terms of law and in the eyes of our residents. Taking legal action is a serious next step and until that is resolved, it would not be right to comment further.”