A council sacked, a CEO under review, allegations of serious misconduct, eroding governance and administrators appointed to oversee council until 2028.
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The damning findings of the Commission of Inquiry into the Moira Shire Council were tabled in Victorian Parliament on Tuesday, March 7 with council dismissed and an administrator appointed.
The commissioners report also recommended the CEO, Clare Keenan, performance be reviewed, that part of the council be overhauled with attention to governance and human resources.
Minister for Local Government Melissa Horne received the findings last Tuesday and said the findings were damning.
“The findings of the report are deeply concerning. councils must properly represent the communities they serve, and Moira residents deserve to have a council that puts their interests first,” Ms Horne said.
“I have accepted the commission’s recommendation to dismiss the council and appoint an interim administrator. The government has introduced legislation into parliament today to allow this to happen.
“The interim administrator will be appointed for a period of three months.
“An ongoing panel of administrators will follow this interim appointment and will be charged with addressing the serious issues identified in the report so that elections can be held at Moira Shire in 2028.
“I am confident that administrators will restore good governance to Moira Shire Council and provide a foundation for building effective leadership, project delivery, community engagement and a positive culture within council.
“I acknowledge the comprehensive work completed by the commissioners, Frances O’Brien KC and John Tanner AM,” Ms Horne said.
The commissioners report highlighted council’s eroding governance over the last decade and allegations of serious misconduct. The 179-page report focused on areas of misconduct, and suspected corruption and the murder of former employee Rick Devlin.
The report stated that the 2021 murder of council operations manager Rick Devlin by colleague and Nathalia Works Depot worker Mr Paterson “may have been preventable”.
It stated the murder was “a tragic event in every way. Two families have suffered deeply as a consequence”.
”The commission considers that there is good reason to think that this catastrophic event may have been preventable. The commission has referred its evidence on these matters to the State Coroner for further examination.“
The commission considered the council’s alleged dumping of asbestos-contaminated fill at tips at Tungamah and Strathmerton in 2020, despite waste and recycling coordinator John Mangan’s warnings, “serious misconduct”. The report has also recommended that the council’s defence against Mr Mangan in federal court be discontinued.
The report also pointed to a 2022 survey which showed a “significant decline” in positive public perception of the council.
It called the proposed developments of the new Yarrawonga library and multisport stadium case studies in how not to approach complex capital projects.
The report stated that the library project was “initiated without any fully costed business case or site assessment” and a business case was commissioned for the stadium project but its assumptions are now in serious question.
The commissioner found the costs of both projects have increased substantially beyond their original cost estimates and serious design deficiencies in both projects. The commission understands that both projects have been subject to ongoing review and that the stadium project is unlikely to proceed as previously proposed.
The commission has recommended that a full and complete external audit be undertaken of council’s financial management policies and practices including procurement.
Moira Shire Council have since responded, noting that they have received notification from the Minister that the Commission of Inquiry Report has now been made public.
Chief Executive Officer Clare Keenan said the focus of the organisation is on the health of those impacted by the report.
"We understand that the findings of the report may be confronting for our staff and their families, and concerning for our community," said Ms Keenan.
“Our priority continues to be the wellbeing of staff, and we have implemented measures to ensure they have support."
At this stage, council will review the findings and seek relevant advice before making any further comment.
In April 2022 a municipal monitor was appointed to council after alleged breaches of code of conduct by a councillor before on-going concerns in cultural and governance issues resulted in the Minister for Local Government Melissa Horne ordering a Commission of Inquiry into the council.
A survey conducted by the Australian Services Union in April last year showed that only 36 per cent of the 16 respondents from Moira Shire Council agreed that they felt safe in their workplace.
Pursuant to section 214(1) of the Local Government Act, the commissioner has ordered that the Moira Shire Council meet the costs of the Inquiry.
More to follow in next week’s edition of the Yarrawonga Chronicle.