Ousting of 'homes for votes' council chief cost £100k

Nick Reiter's employment as Shetland Islands chief executive was cut short after just five months, when it was claimed he had misled councillors over his involvement in the gerrymandering scandal (Housing Today, issue 116).

Councillors were outraged when they learned he had been head of policy at Westminster and had written briefing papers on the designated sales scheme 12 years previously - even though he had not been found guilty of wilful misconduct.

But the Accounts Commission for Scotland condemned the "flawed" pursuit of Reiter, which ignored disciplinary procedures and cost £24,424 in expenses.

The commission's controller of audit Robert Black said Reiter, who received £78,696 in compensation for losing his job, had not attempted to mislead the council.

Black said: "Despite my extensive enquiries I have been unable to form a clear view regarding the precise complaint which led to the termination of Mr Reiter's employment."

"I consider that the council should not have been so heavily influenced by Mr Reiter's behaviour while at Westminster city council and should not have had so little regard for his conduct and performance in his subsequent posts."

The report is being considered by the Accounts Commission, which could hold a fresh hearing on the case.

Shetland Islands council said the report would be considered by a committee. In a statement, it added: "Much of the report is drafted in terms of the opinion of the controller of audit and clearly matters of judgement and opinion rightly require time for consideration." Reiter was not available for comment.