THE bungled retirement of the county’s outgoing chief fire officer, which will cost the taxpayer £320,000, has been labelled as “embarrassing” and a “cloud” hanging over the service for the past 18 months.

As previously reported, Paul Hayden attempted to retire from Hereford and Worcester Fire and Rescue Service after being wrongly advised he didn’t need permission and would get a bumper tax-free pension.

The deal was challenged by the Fire Brigades Union which resulted in a £1.2 million claim from Mr Hayden to cover his tax liabilities.

The final settlement includes a loss of about £75,000 for the fire service and £122,500 each for Worcestershire County and Herefordshire Councils.

Grant Patterson, from the Audit Commission presented his final report to the fire authority’s audit committee yesterday.

He said the problems arose through a lack of openness between treasurer Mike Weaver and deputy monitoring officer Kevin O’Keefe and their failure to seek independent advice on the pension deal.

Mr Patterson praised new chief Mark Yates for putting measures in place to ensure something like this never happens again.

Committee member Councillor David Greenow said: “It was embarrassing how it arose but it has been cleared up satisfactorily.”

Councillor Terry Spencer said: “It’s a great shame that Paul Hayden went under this cloud. I’m sure everyone acted with the best intentions.

“It’s such a shame this happened, it was a freak, a real one off which has been so complicated.

“I would like to make sure our best wishes go to Paul Hayden for a happy retirement.”

After the meeting Mr Yates said: “I think I can speak on behalf of the whole service and say we are glad that we can draw a line under this matter.

“It has been a cloud hanging over ever since I started as chief fire officer.

“The arrangements we have put in place have been recognised by the auditor and I am very much about ensuring the service is in a stronger position for the future.”

The Fire Brigades Union said it was worried how the cost of the settlement would affect firefighters across the two counties.

A spokesman said: “Our biggest fear is where are we going to find the money? We are afraid of the hit-back from this loss of money.

"Will this come through crewing arrangements?

“We are very saddened by the fact that no one has been held to account for this.

"It seems the district auditor and the Audit Commission have just decided to let it go.

"Someone should be accountable.”