Speculation is growing that Bradford's most senior Council officer is about to leave after more than 10 weeks on sick leave.

The authority's £105,000-a-year chief executive, Richard Penn, reported sick in June - not long after Councillor Ian Greenwood ousted John Ryan as leader of the Council - and he has not been seen in the City Hall corridors of power since.

In a brief statement to the Telegraph & Argus, 52-year-old Mr Penn said: "I am taking some time away from my work on the strongest advice of my GP and the Council's occupational therapy unit. It is for no other reason.

"I need a complete break from work. It was my decision to take the advice of my GP."

He refused to comment further.

But his 'disappearance' from the Council scene has caused some consternation across the city, as his role involves him in a number of other major city organisations, such as Bradford Congress and the board of Bradford & District Training & Enterprise Council.

And Mr Penn's absence is understood to have coincided with changes in policy and structure which have caused alarm among Council staff.

One insider told the T&A: "Staff want him to return. The Council now seems to be run by a small and self-styled elite group of officers and members who are keeping all information to themselves.

"Staff are insecure and want Mr Penn to bring back openness to the service. There is great concern about the way things are being run."

Council leader Ian Greenwood denied there was an "elite group" or secrecy and said the Council was being run in the normal way, through the Labour group and officers working within their remit.

"Mr Penn is the serving chief executive," he said. "To the best of my knowledge he will return in the near future."

He said he was concerned about Mr Penn and hoped he would soon feel better.

But the leader of the Council's Tory group, Councillor Margaret Eaton, has written to acting chief executive Philip Robinson saying she believes that Mr Penn's long absence may be causing lack of co-ordination in the Council.

In the letter she wrote: "Rumours are rife in City Hall suggesting that major stresses and strains exist between the new Labour leadership and senior officers.

"This, if correct, cannot be helping the smooth and effective running of the district."

She says her concerns are for Mr Penn, but she is also worried about "practical difficulties" his absence appears to be having on the Council's performance.

Other sources are adamant that the relationship between the new leader and Mr Penn before his sick leave had been cool. They allege he was sidelined in favour of another officer, David Kennedy, the director of regeneration and strategic support, whom they claim was given extra responsibilities.

An insider said: "Any organisation can have its favourites and David Kennedy is regarded very highly by Ian Greenwood and his supporters."

He claimed there had been a disagreement between Coun Greenwood and Mr Penn, who lives in Ilkley, when it was suggested Mr Penn's wife Gill's role as chairman of Airedale Health Authority might compromise his job.

"But there was no more stress than there always is between officers and members," the source said. "He became ill only four weeks after Coun Greenwood became leader and there hadn't really been time to build up a relationship."

Coun Greenwood told the T&A no-one had been sidelined and strongly denied that anyone else was being groomed to become the next top officer.

He said he had no reason to think Mr Penn would not return and would never make a judgement in those circumstances.

Director of corporate affairs Philip Robinson is Mr Penn's deputy and receives extra pay when he stands in.

But Mr Kennedy has been acting chief executive while Mr Robinson has been on holiday.

Council sources say he stepped into Mr Penn's shoes even though director of education Diana Cavanagh and social services director Liam Hughes enjoy equal senior status. Patrick Howley, director of housing and environmental service, is also regarded by many as having seniority over Mr Kennedy.

Coun Greenwood said Mr Kennedy had been chosen by Mr Robinson as his replacement during the holiday but other directors may take a turn "if it becomes necessary."

He said Mr Penn's job was being filled through well-established processes and procedures during his absence.

"We have entire confidence in these arrangements," he said.

It also appears that the Council is not expecting Mr Penn back in a hurry - a report to last week's corporate executive sub-committee names Mr Robinson as the chief officer expected to go to a Eurocities conference in France in October. The chief executive usually attends.

Mr Kennedy said at the meeting it was a mistake in the document.

But the document has merely fuelled rumours that Mr Penn, who has been with the Council for 10 years, may not come back at all.

It is understood he had talks with the previous leader, Coun John Ryan, about the possibility of leaving at some date in the future.

Options open to the authority could include early retirement, retirement on sickness grounds and leaving in the interests of the efficiency of the authority.

It is understood the latter choice would require the approval of external auditors KPMG.

Top officers Richard Smith, John Steel and Allen Sykes have all left the authority over the last two years and it is understood negotiations took place before the final decisions.

The Council has the discretion under the options to extend the period of officers' pensions, which gives a good incentive to leave early and can involve thousands of pounds, depending on salary.

If Mr Penn is heading for a pay-off, it is unlikely the full story of his departure will ever come out. Ironically, as chief executive, he was previously involved in efforts to ensure that senior Council officers who have left unexpectedly sign legal "gagging orders" as a condition of their cash settlements.

The most high profile was director of education Sari Conway, who was said to have left the authority with a settlement believed to total £200,000 and a "secrecy" clause barring her from talking about the case and revealing details of the pay-off deal.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.