BOSSES at a council yesterday admitted that it had illegally appointed a key officer.

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

But local government watchdogs told the authority that the appointment broke the council's rules, because councillors were not told the financial details or given the chance 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 Councillor 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."

An internal inquiry was held to make sure the situation can not happen again.

Coun Ebbatson said: "It is a big issue in so far as we have got to learn from this."

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

The District Auditor wrote to the council in July, pointing out the problem and urging it to show members the financial details.

This was done at a closed meeting in September, when members learned Ms Marjoram had cost £650 for every day worked.

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