CLLR Alan Preest has written to the Audit Commission asking for an investigation into £150,000 he says was paid to the former Town Clerk for her retirement on health grounds.

His letter to the auditor states the clerk left recently after five years with the Town Council following a non-work-related  accident  about a year after her employment started.

"I have no issue with the medical basis on which the clerk retired," he says.

"I believe that there was concern within the council that the final salary of the clerk, on which the pension was based, had escalated beyond what councillors had agreed.

"I also believe that the council asked for a police investigation into the pay awards made to the clerk, but either there was insufficient evidence of any criminal act or the fact that internal disciplinary procedures had taken place prevented further police investigation or action."

He asks the auditor to examine whether the proper "procedures and controls" were followed in making the award, which he believed amounted to about 25 per cent of the Town Council's precept plus money from its savings account.

Lydney Town Council was asked for comments on the issue and said in response to inquiries by Cllr Preest that he had been sent a copy of the Budget for 2011/12 showing the council's employer's liability in respect to ill health retirement of the previous town clerk; plus an email which explained Local Governmental pay structures.

"Cllr Preest then requested further information under the Freedom of Information (FOI) Act which related to a former employee's terms and conditions of service. Such details are however 'exempt' and do not fall under the FOI Act,

"Cllr Preest was sent a letter explaining this point.  The letter also provided guidance as to how Cllr Preest could evoke a complaint ... if he did not feel his questions had been readily answered."

Current Town Clerk Lynda Smailes said: "Lydney Town Council firmly believe they have acted openly and transparently throughout, having provided to Cllr Preest all information as per his requests, the only exception being information which relates to an individual as their terms and conditions of service are confidential and are exempt from (the) FOI Act.

"As an employer, Lydney Town Council, like many businesses both in the private and public sector,  provide a pension scheme for their employees.  When an employee leaves their position on ill health grounds there is a legal obligation  for an employer to meet a contribution towards such costs."