SCOTLAND'S public spending watchdog is reviewing the decision to allow the country's most senior fire chief to retire earlier this year and then return to his post on full salary.

Brian Sweeney, chief fire officer for Strathclyde Fire and Rescue, retired in the summer with a £500,000 payment, following special permission from the fire board.

Strathclyde Fire and Rescue Board then offered him the chance to switch to a new three-year contract just a month after his leaving date.

They asked him to stay on until after the 2014 Commonwealth Games, despite the forthcoming move to a single service for the whole country.

The annual audit of the Strathclyde Fire and Rescue Board raised concerns about the move and use of public funds.

Audit Scotland told The Herald the Controller of Audit is now considering the concerns.

A fire source said: "It's outrageous he was allowed to retire, take his lump sum pension and walk back into the same job.

"We were told he is back on a three-year contract, despite the fact we are moving to a single fire service for the whole country.

"He has been allowed to access his pension at a time when our pensions and jobs are at risk."

Mr Sweeney was praised for his handling of the 2004 Stockline factory explosion and the 2007 Glasgow Airport terror attack. He received a Queen's Fire Service Medal for his leadership over Stockline and the 2004 Rosepark Care Home blaze.

He is also thought to be the frontrunner for the forthcoming job of heading up the new single fire service for Scotland.

However, the most recent Strathclyde Fire and Rescue Board minutes from December highlight concerns raised by PriceWaterhouseCoopers in their annual audit.

The minutes state: "The report comments on the board's governance and control procedures, advising that, in relation to the chief officer arrangements, the level of evidence made available does not readily support a best value decision concerning retirement, re-employment and the potential use of board funds to pay an unauthorised payment charge. However, no action related to this decision is included within the action plan.

"The convener, on behalf of the board, has written to the Controller of Audit, disputing this conclusion and providing evidence that seeks to demonstrate the board acted responsibly and reasonably in this matter."

Last month it emerged London Fire Brigade commissioner Ron Dobson had been allowed to retire, receiving an estimated £700,000 pay-off, before being re-employed into his old position, although on lower pay. The Fire Brigades Union branded it "deeply unethical".

When it emerged Mr Sweeney was being offered a new contract, he said the public needed to be clear it was not public money but his own private pension he was accessing.

An Audit Scotland spokeswoman said: "The Controller of Audit at Audit Scotland has received the annual audit report from PWC, the appointed external auditor of Strathclyde Fire and Rescue. This report raises issues relating to the retirement and re-employment of the Chief Officer and the potential use of board funds.

"The Strathclyde Fire and Rescue board has written to the Controller of Audit to state it disagrees with this aspect of the report. The board considered a paper at its December meeting which mentions this. The Controller of Audit is currently considering this matter."

A spokesman for Strathclyde Fire and Rescue said: "The board of Strathclyde Fire and Rescue has written to Audit Scotland regarding this issue, and we are awaiting their response. The chief officer's salary is a matter of public record and available in our annual accounts."