Caebrwyn beat me to it with a piece from the Llanelli Star which reports that Jonathan Edwards MP has called on the council to instruct Mark James to repay the money.
The council's response reminds us just how shabby the compromise struck with the WAO really is. Although the WAO declared the payments unlawful, the council refuses to accept the finding and will not be seeking repayment. Quite who penned this response is not clear.
In the matter of the unlawful libel indemnity, the council has merely suspended the clause from its constitution pending 'clarification' from the Welsh Government. It is not even clear whether the suspension of a bit of the constitution is legal.
Kevin Madge's hope that the whole episode can now quietly be forgotten is already looking about as realistic as Cneifiwr's chances of winning the lottery.
As we now know, Gloucestershire Constabulary has decided that there will be no further action over unlawful payments to the chief executives of Carmarthenshire and Pembrokeshire. After an investigation lasting nearly three months the police concluded that there was no evidence that criminal offences had been committed.
This is not quite the end of the story because councillors in Carmarthenshire will have to decide whether to follow the example set by their neighbours in Pembrokeshire and ask for repayment of the money which the WAO ruled had been paid out unlawfully.
The council leader, Kevin Madge (Lab), welcomed the announcement and hopes that we can now all move on, but the scandals have changed the landscape, and any attempt to return to the way things were before 14 February would be a huge mistake.
Public confidence in the council has been badly shaken, and the trust which existed between councillors and the chief executive has been dented. When the lid was briefly lifted on the internal workings of the council earlier this year, what we saw was not a pretty sight.
Some senior councillors and council officers will be mightily relieved that there is to be no further investigation, and a few may be unwise enough to crow in triumph.
The Labour group will have mixed feelings of relief tempered with nervousness about what happens next. A Bourbon restoration of a victorious and unrepentant Mr James would put an end to any hope of reform and meaningful change in governance.
There is speculation that early retirement may be the preferred face saving solution.
Kevin Madge may also be wondering nervously when the next scandal will break, and there is no question that there is more and worse lurking in the woodwork.
For its part the Wales Audit Office will be able to claim that its reports eventually achieved the desired effect, with the two councils backing down with gritted teeth, but it looks rather bruised and battered. The decision to employ the services of Timothy Kerr QC to challenge the competence and authority of the WAO was outrageous and is set to go unpunished. The WAO probably lacks the muscle and the funds to go to court, and it has been left looking like a paper tiger.
Throughout this whole story the Welsh Government has sat on the sidelines, occasionally wringing its hands, as three Welsh councils were engulfed in scandals involving over mighty chief executives, serious failings in governance and a lack of accountability.
Inaction by Carwyn Jones, Lesley Griffiths and Carl Sargeant means that the final chapter is still a long way off.