MS says the council has the right to pay £209,000 to the ex-boss

It is the second substantial payout to a former Caerphilly City Council chief executive in three years.

The council has so far refused to discuss what happened at last week’s meeting, calling it a “confidential employment matter.”

Council members were warned not to speak publicly about the issue and the meeting was closed to the press. However, sources told the BBC that the settlement was approved by the council’s ruling Labor faction.

It is understood Ms Harrhy had raised concerns about industrial relations and trust in relation to Labor leader Sean Morgan and a senior civil servant.

Sources had told the BBC that an investigation had reportedly not confirmed the claims.

Speaking in the Senedd, David said the allegations made by the BBC were “unproven and have in fact been shown to be false and offensive”.

“The industrial relations would then be very difficult to repair and indeed a disciplinary investigation would have been appropriate.”