Commenting on the Wales Audit Office reports into the 'unlawful' actions of Pembrokeshire and Carmarthenshire Council, Peter Black, Welsh Liberal Democrat Shadow Local Government Minister, said:
"The fact that both Pembrokeshire and Carmarthenshire councils acted unlawfully is deeply worrying.
"At a time when local councils are tightening their belts and having to reduce certain services, it is essential that local people know that their taxes are being spent wisely and efficiency. The Wales Audit Office has found that this was not the case with these two councils.
"Both councils have made serious mistakes and must amend them immediately. Carmarthenshire Council should withdraw its decision to grant an indemnity to the Chief Executive, while Pembrokeshire Council must overturn its decision around pensions opt-outs and stop any further payments to senior officers.
"People need to have faith that their taxes are being spent correctly. It is vital that both councils urgently put right this situation."