The District Auditor is investigating the circumstances surrounding the pay-off of a Sussex town clerk.

Paul Archer, town clerk of Newhaven, was suspended from his £25,000-a-year post last August after a unanimous decision behind closed doors by town councillors. No reason was given.

He was suspended on full pay until the end of the year and his contract was finally ended in February after another discussion behind closed doors.

Councillors have been forbidden to discuss details of the pay-out with anyone from outside the authority and refused to confirm whether or not he was sacked.

Now District Auditor Peter Arkell has been called in following complaints from local residents, including some from outside Newhaven but within the Lewes District Council area.

David Rogers, the leader of East Sussex County Council and a Newhaven town councillor, insisted the council had done everything correctly and there were no financial irregularities.

Since July, Mr Archer's duties have been carried out by existing staff. He has never revealed the circumstances surrounding his departure.

John Hodgson, a former Lewes district councillor and a political and environmental activist, said: "Mr Archer was well qualified, efficient and well respected. I have heard he was on more than £25,000.

"It costs a lot for a town council to suspend someone on such a salary without getting any work out of them for six months. With pension arrangement, pay-off and salary in lieu of notice we could be looking at a figure of between £150,000 and £200,000.

"Chargepayers in Lewes District had an increase of around ten per cent this year and town and district councils cannot go on wasting money on suspending staff who are doing their job. I hope the District Auditor will provide the answers I am looking for."