A cash-strapped council has agreed a £209,000 settlement to pay off its chief executive who has been absent for nearly a year.

Sources have told BBC Wales that members of Caerphilly council met in secret on Monday evening to agree a pay out for Christina Harrhy, who has not worked at the authority since last November.

The authority is trying to save £45m from its budget over the next two years and has faced rows over plans to close a museum and an arts venue.

The council confirmed that Ms Harrhy, who was appointed in 2018 and had a salary of £148,773 in 2022-23, had left the authority and her deputy Dave Street had taken over.

It confirmed a meeting took place to discuss a “confidential employment issue” and it “would not be appropriate to disclose the details of the meeting”.

In 2021 the authority gave its former chief executive Anthony O’Sullivan, who was sacked in a pay row, a £97,500 payout.

At Monday’s meeting the council said Harrhy had been absent since November 2023 due to sickness.

It is understood that, after she was assessed to be fit for work in January, she had raised concerns about working relationships and trust relating to Labour leader Sean Morgan and a senior officer.

Sources said an independent investigation that reported in the summer allegedly did not stand up the claims.

It is not clear what happened between the chief executive and Mr Morgan.

The settlement is made up of 10 months’ salary – costing taxpayers £146,000 – payment in lieu of notice of £43,800 and accrued annual leave of £19,200.

Officials were said to have argued that the cost of a settlement was cheaper than going through a further investigation and facing a tribunal.

The sources told the BBC that the settlement was voted through by the council’s governing Labour group.

The authority recently took the controversial decision to at least temporarily close Llancaiach Fawr Manor, a Tudor mansion and museum after spending £500,000 a year subsidising the site.

It has also proposed to mothball Blackwood Miners’ Institute.

A source said: “I think people have been asked to put up with a lot with queries on changing services.

“I think there will be an outpouring of unhappiness from the public. This is not the way to run an authority.”

Harrhy confirmed she had left the council but declined to comment.

Morgan also declined to comment.

A Caerphilly council spokesman said: “A special meeting of council took place on Monday 7 October to discuss a confidential employment issue. It would not be appropriate to disclose the details of the meeting.

“We can confirm that Christina Harrhy has left the authority and that the deputy chief executive, Dave Street, will act as interim chief executive while the council considers the next steps in terms of appointing a permanent chief executive.”