COUNCILLORS have admitted their authority had illegally appointed a key officer.

Bernadette Marjoram joined Chester-le-Street District Council last year, briefed to turn around its much-criticised housing department.

But local government watchdogs told the authority that the appointment broke the council's own rules, as councillors were not told the financial details, or given the opportunity to ratify the decision.

The District Auditor has warned councillors they could have to pay her £80,000 wages out of their own pockets.

Council leader Linda Ebbatson said: "We have had a lot of criticism in recent years and one of the main accusations levelled at us is that we are not a learning council.

"This is one example of where the council has to learn from past experience and that is not just members, but the whole council. The most important thing is to make sure that this never happens again."

She said she could not talk in detail about the issue, because it was dealt with as exempt information and legally cannot be disclosed to the public.

But a senior figure at the authority confirmed that the council had made the error. An internal inquiry was conducted to make sure it cannot happen again.

Privately, leading councillors are blaming their officers, who assured members that the appointment was above board.

Coun Ebbatson said: "It is a big issue in so far as we have got to learn from this. But in the greater scheme of things, it is not so serious. Everything that should be done is being done."

Ms Marjoram was hired as interim housing director last year after two highly critical Audit Commission reports regarding the council's housing department. She has since been appointed as acting chief executive for the authority.

The District Auditor wrote to the council in July to make town hall chiefs aware of the illegality of the appointment and urged them to show members the relevant financial details.

This was eventually done at a behind-closed-doors council meeting in September, when members learned that Ms Marjoram had cost them £650 for every day she worked.

She was paid £36,932 while she was interim housing director and a further £45,249 after she became acting chief executive in August.