Caborn embroiled in pay-out row

February 26, 2002

Richard Caborn, the sports minister, was involved in a fresh row last night after he was said to have wrongly given the go-ahead to a resignation deal that will cost Sport England nearly £500,000 from its annual budget.

The controversial £494,000 pay-out to Derek Casey, Sport England's former chief executive, was not stopped by the Treasury because it would have landed taxpayers with an even bigger legal bill if it went to court.

The secret deal - disclosed in the Guardian in November - is confirmed by parliament's financial watchdog, the national audit office, in a report published yesterday. It shows that Casey, a former Scottish rugby player, negotiated an extraordinary pay-out of £157,500; 10 years' enhancement to his pension and an agreement to start paying him his pension immediately at the age of 51 when he was asked to go.

According to the national audit office the deal was discussed at a meeting between Sport England's chairman, the former West Ham footballer Trevor Brooking, Caborn and Casey on June 14.

The NAO says: "The severance package was discussed by the minister and the chairman and, on the basis of those discussions, Mr Brooking was left with a clear view that the minister had approved the severance package. "The package was also discussed separately by Mr Brooking and Mr Casey." Sport England last night insisted that Caborn had agreed to pay out the cash at the meeting.

Last night the department of culture, media and sport agreed that Caborn had discussed the deal and endorsed it but insisted this did not amount to approving it legally. Caborn said last night: "We did have an amicable discussion . . . Sport England had to pay [Casey] the £157,500 or he said he would go a tribunal. The rest of the money was a notional actuarial amount for his pension which Sport England have paid out to other senior people."

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