AN “unlawful” payment of £25,000 was made three years ago to a Minehead town councillor, auditors PKF Littlejohn have ruled.

But the firm said it was not starting legal action to recover the money because of the cost of doing so and the fact it was a one-off occurrence.

Then-Cllr Andrew Kingston-James was paid the money in July, 2022, as an ‘honorarium’ two months after he had been elected Minehead Mayor.

In a statement on Tuesday (June 3) the council said it would hold an extraordinary meeting within the next month to discuss the auditor’s report.

Councillors will formally consider PKF Littlejohn’s findings, make recommendations and consider measures to further strengthen governance, many of which the council said were already in place.

A council spokesperson said: “This meeting will be open to all and details will be published shortly on our website.

“We encourage residents to review the full report, which will be available on our website.

“Paper copies can be viewed at our offices, and takeaway copies are available upon request in accordance with our publication scheme.”

The payment in 2022 was agreed by councillors in recognition of then-Cllr Kingston-James’ work to represent the authority in an employment tribunal case.

The council dismissed its clerk Jenny Bashford in July 2020, after she had been suspended since October 2019.

Ms Bashford then took an unfair dismissal case to an employment tribunal in Bristol and then-Cllr Kingston-James, whose LinkedIn profile describes him as an ‘independent human resource consultant’, was given delegated powers to defend the claims.

Two of Ms Bashford’s claims were dropped and the third was struck out during the tribunal proceedings.

Documents state the town council made an up-front payment of £4,000 to then-Cllr Kingston-James to cover his expenses in the case, of which more than £1,600 was refunded because the tribunal case ended earlier than expected.

Councillors were given an analysis in which it was claimed then-Cllr Kingston-James had spent 1,366 hours on the case, equivalent to working on it full-time for more than 34 weeks.

The payments caused political turmoil within the town council for several months. Cllr Kingston-James stood down as mayor and resigned from the authority in March 2023.

PKF Littlejohn began an investigation into the payments after objections by a council taxpayer to the town council’s accounts for the 2022/23 municipal year.

Now, it has issued a ‘public interest report’ on the matter, which the council will have to publish and debate in an open meeting of councillors.

The auditor said it partially upheld all of the three objections which had been made to the council’s accounts.

The company said: “In our view, the council did not have the power to make the ‘honorarium’ payment to the councillor.

“The council has not provided any legal basis on which the payments were made, nor was any recorded in the council’s meeting minutes or internal records.”

PKF Littlejohn said the council had initially claimed it had contracted with a company with which then-Cllr Kingston-James was associated and was therefore justified in making the payment.

However, it said: “We have been provided with no documentary evidence to support such a contractual relationship, despite specific requests.

“The council’s description of the payment as an ‘honorarium’ is also inconsistent with a genuine contractual relationship.

“Even if one existed, and could be evidenced with the documentation, it would not provide support for payments to the councillor that the council had no power to make.”

The council spokesperson acknowledged the auditor’s report, which addressed historic decisions and payments arising from ‘a complex and sensitive employment tribunal case’.

They said: “We fully recognise the seriousness of the findings.

“The council is committed to acting with transparency and diligence in response to the auditor’s findings.

“The matter reviewed by the auditor relates to decisions made under a previous council leadership and administrative structure.

“Since then, there has been significant change in both council staff and membership.

“The council now operates under new leadership, with an enhanced focus on governance, accountability, and full compliance with relevant legislation.

“Several of the report’s recommendations have already been integrated into the council’s evolving governance framework.

“We are also taking this opportunity to further strengthen our internal controls and documentation processes.

“These improvements are part of our ongoing commitment to raise standards and rebuild public confidence.

“We regret that the cost of addressing these issues, including the production of this report, ultimately falls to the taxpayer.

“However, through prudent financial management, the council has built up reserves which it is anticipated will be sufficient to cover the associated costs without affecting frontline services.

“It is important to emphasise that this report concerns historic matters.

“It does not reflect the values or practices of the current administration, which is determined to ensure such circumstances are not repeated.

“The council remains committed to openness and continual learning as we move forward with purpose and integrity.

“We believe the findings of this report, and our constructive response to them, including working closely with the auditor to ensure full transparency and compliance throughout the investigation, mark a clear turning point for the council and the community we serve.

“While we acknowledge and take full responsibility for past challenges, we are focused on building a more transparent, accountable and resilient council that works in the best interests of Minehead residents.”

Mr Kingston-James has been contacted for comment.