A local MP has asked South Wales Police to investigate whether misconduct in public office charges should be brought against Carmarthenshire CC – after a damning report from Welsh spending watchdogs.

Jonathan Edwards, who represents Carmarthen East and Dinefwr, branded as ‘extremely damaging' last week's special interest report findings by the Wales Audit Office.

These disclosed that Carmarthenshire's chief executive, Mark James, was unlawfully given indemnity to bring a libel counterclaim against a local activist, Jacqui Thompson, and also unlawfully allowed to opt-out of Local Government Pension Scheme (LGPS) arrangements.

Assistant Auditor General for Wales, Anthony Barrett, said Carmarthenshire acted unlawfully on two fundamental issues.

‘The authority has taken decisions and used taxpayers' money in areas that they do not have the legal powers to do so.'

He welcomed the council's decision to reverse its decision over the pensions issue, but stated ‘it now needs to do the same in relation to the libel indemnity granted to the chief executive.

But constituency MP Mr Edwards said the unlawful indemnity and unlawful pension arrangements had seen more than £55,000 in public money spent for the benefit of Mr James.

‘But even more worrying is the disclosure of the appointed auditor that the council did not seek specific advice on the lawfulness of granting the indemnity,' Mr Edwards added.

He said the documentation in support of approving the indemnity was written by council officers, was not based on specific legal advice the authority was told to obtain and failed to take into account instructions given four years earlier.

‘Given that officers drew up the report without any specific legal advice, questions need to be asked as to whether the officers were aware that their actions might be judged to be unlawful, but decided to press ahead despite the risk of the grave consequences,' he added.

Mr Edwards confirmed he had contacted both Dyfed-Powys and South Wales police to investigate the affair to satisfy themselves no misconduct had taken place.

A Carmarthenshire spokesman said:  ‘The Wales Audit Office reports have been received and will be carefully considered by the council in due course.  It would not be appropriate to comment further until such time'.

Pembrokeshire was also censured for allowing its chief executive and another senior officer to receive £51,011 cash sums, equivalent to employers pension contributions, for opting-out of LGPS arrangements.

Pembrokeshire's deputy leader, Cllr Rob Lewis said: ‘This report deals with a number of complicated issues.'