Reports on current and completed investigations under section 430 of the Local Government Act 1993 are listed on this page under the relevant council’s name.
Current Investigations
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Liverpool City Council - May 2024
The Office of Local Government has determined that an investigation should be conducted under the provisions of Section 430 of the Local Government Act 1993 in relation to Liverpool City Council.
Terms of Reference for the investigation
a) Recruitment and Selection Matters
To investigate and report on the recruitment, selection process and appointment of persons into senior positions following the Council’s restructure from 2022 through 2023.
In particular:
1. Whether the Council complied with statutory obligations and its Policies and Procedures in recruitment and selection relating to the occupants for the relevant position2. Whether the recruitment and selection process for the relevant positions was merit based and/or whether other identifiable factors influenced recruitment and selection processes and if so, what were those factors
3. Whether the Council complied with Council Policies and its obligations under the NSW State Records Act in regard to the maintenance and retention of records relating to recruitment and selection for the relevant positions
4.Whether there were any conflicts of interest which may have influenced recruitment for the relevant positions, and whether any such conflicts may have influenced recruitment and selection processes for those positions
5. Whether councils finances are being adversely affected as a result of staffing decisions including, but not limited to, termination payouts.
6. Whether concerns raised regarding the conduct of staff or councillors have been adequately managed and addressed to ensure a safe and functional operation of Council consistent with WHS obligations, and
7. Any other related matters identified by this Office that may have impacted upon the governance and effective administration of the Council
b) Review and report on the status and implementation of recommendations made relevant to a Public Interest Disclosure investigation report dated 13 September 2022 into allegations of mismanagement by Council relating to the Liverpool Civic Place Project.
NOTE: The matters listed above will be the subject of separate reports.
Reports on completed investigations
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Mascot Towers Development – March 2023
The Terms of Reference issued by the department on 10 August 2022 requested an investigation and report on the following matters in relation to the Mascot Towers development:
- Whether the councillors of Botany Council met their responsibilities under the LG Act, the Local Government (General) Regulation 2005 (LG Regulation), and other relevant legislation and any relevant standards in relation to the granting of relevant interim and final Occupation Certificates.
- Whether the officers of the Council met their responsibilities under the LG Act and LG Regulation, and other relevant legislation and any relevant standards in relation to the granting of relevant interim and final Occupation Certificates.
- In considering the above, whether or not the relevant people met their responsibilities under the LG Act and LG Regulation, and other relevant legislation and any relevant standards, in relation to: (i) the assessment and determination of the relevant development application; (ii) the granting of the relevant Construction Certificates.
- Any other matter that warrants mention in relation to the Council’s responsibilities and conduct.
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Murray River - November 2022
The Terms of Reference for the investigation were to investigate and report on:
- The dealings between Murray River Council (Council) and Murray River Energy Pty Ltd (ACN 628 094 879) (MRE) and any other entities or individuals relating to a proposed ethanol plant (the Plant) at Moama (the Project) and, in particular, in regard to: a) The dealings between Council, MRE, any other entities or individuals and the promoters of the Project;
b) The circumstances in which Council acquired land (the Land) at Moama as a site for the Plant;
c) The circumstances in which Council provided a loan to MRE;
d) The advice provided to councillors and the community regarding the Project. - Whether, in its dealings relating to the Project, Council exercised appropriate probity, risk management and due diligence processes.
- Whether in providing money to MRE or any other entity or individual, Council breached the Local Government Act 1993, the Local Government (General) Regulation 2005 and/or Ministerial Investment Order of 12 January 2011.
- Whether Council adequately and properly considered the financial risks to Council when acquiring the Land and providing funds to MRE or any other entity or individual.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of Council, councillors and its administration.
- The dealings between Murray River Council (Council) and Murray River Energy Pty Ltd (ACN 628 094 879) (MRE) and any other entities or individuals relating to a proposed ethanol plant (the Plant) at Moama (the Project) and, in particular, in regard to: a) The dealings between Council, MRE, any other entities or individuals and the promoters of the Project;
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Warrumbungle - October 2019
The Terms of Reference for the investigation were to investigate and report on:
- Whether the councillors of Warrumbungle Shire Council are fulfilling their role and responsibilities under the Local Government Act 1993, the Local Government (General) Regulation 2005 and other relevant legislation and any relevant standards and, in particular, in relation to:
a) Council’s consideration of its 2017 waste services tender for the supply and installation of skip bins.
b)Strategic, operational and management aspects of its water resources function. - Whether the Council officers of Warrumbungle Shire Council are fulfilling their role and responsibilities under the Local Government Act 1993, the Local Government (General) Regulation 2005 and other relevant legislation and any relevant standards and, in particular, in relation to:
a) Council’s consideration of its 2017 waste services tender for the supply and installation of skip bins.
b)Strategic, operational and management aspects of its water resources function. - Whether the conduct of councillors (whether individually or collectively as the governing body of council), senior Council officers and Council staff, has hindered the provision of efficient, effective and appropriate standards of governance.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the Council, councillors and its administration.
- Whether the councillors of Warrumbungle Shire Council are fulfilling their role and responsibilities under the Local Government Act 1993, the Local Government (General) Regulation 2005 and other relevant legislation and any relevant standards and, in particular, in relation to:
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Hurstville - February 2016
The Terms of Reference for the investigation were to investigate and report on:
- The governance of the Hurstville City Council including:
a) its consideration at its ordinary meeting of 20 May 2015 of a staff report recommending possible enforcement action into allegations of breaches of the conditions of development consents, illegal demolition and dumping and/or removal of asbestos in relation to property owned by the Mayor, Clr Con Hindi, at 40 Crump Street, Mortdale and the circumstances giving rise to its decision in relation to that matter, andb) its suspension of the General Manager, Mr Victor Lampe, at the same meeting, the circumstances giving rise to that decision, and any subsequent action taken by the Council and councillors in relation to that decision, andc) its management of complaints about Mr Lampe, and - such other matters as the investigator considers to be relevant.
- The governance of the Hurstville City Council including:
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Strathfield - October 2015
The Terms of Reference for the investigation were as follows:
To investigate and report on:
1) Whether there has been maladministration and/or serious and substantial waste of local government money in relation to Strath field Municipal Council’s:
- a) procurement and expenditure on services from the International Property Group Pty Ltd (ACN 117 214 829);
- b) procurement and expenditure on legal services and associated professional advice since 1 July 2011; or
- c) decisions of 7 May 2013 and 2 July 2013 pertaining to the appointment of an external auditor and the related tender processes.
2) Strathfield Municipal Council’s conduct and performance as the Trust Manager of the Hudson Park (R62163) Reserve Trust since 1 July 2009.
3) Any other matter that arises directly from the principal investigation of the Council’s work and activities set out in the terms of reference.
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Wyong - July 2011
The Terms of Reference for the investigation were as follows:
To investigate and report on
- The processes used by Council to select, engage, manage and pay consultants, contractors or other persons/entities, having particular regard to the following:
- any arrangements that Council has entered into in the last 3 years, involving payments to a single entity or individual totalling $150,000 or more, for the provision of services with a high labour content
- any arrangements referred in Council documents as a “body hire” arrangement
- whether persons engaged under or pursuant to such arrangements should be properly classified as independent contractors, employees of Council and/or as employees of another entity
- the systems and processes the Council has in place to properly deal with its different statutory obligations arising for each class of person engaged under such arrangements.
- The engagement of a contractor/consultant to temporarily fulfil the role of Manager of Customer and Community Services for an extended period, having particular regard to the following:
- whether this person was or should have been engaged as an employee of Council
- the process of selecting and appointing the person to undertake the role in a temporary/acting capacity
- whether a contract existed between this person and the Council and if so, whether that contract was subject to the tendering provisions of section 55 of the Act.
- The selection and engagement of contractors or other persons to deliver a program described in Council documents as the Leadership Development Program, having particular regard to the following:
- the scoping, planning and budgetary process used to inform the decision to approve and control the delivery of the program
- the approval of the program
- the identification and assessment of potential service providers
- whether tenders were or should have been called for the delivery of the program
- whether the program was or should have been approved by the elected Council
- whether the program was or should have been disclosed in the Council’s annual management plan and/or reported on in the Council’s annual reports
- the adequacy and manner of reporting of expenditure associated with the delivery of the program.
- The adequacy of the Council’s policies, procedures and delegations governing tendering and the procurement and payment of services, having particular regard to those services with a high labour content such as consultants and those for provision of professional services.
- The level of compliance with Council’s policies, procedures and delegations governing tendering, the procurement and payment of services and the adequacy of controls to ensure such compliance.
- Any other matter that warrants mention particularly where it may impact upon the effective administration of the area.
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Cessnock - January 2009
The Terms of Reference for the investigation were as follows:
- Whether the Council is able to meet its responsibilities under the Local Government Act 1993 (the Act). In particular, whether:
- The conduct of councillors and council staff results in the provision of efficient, effective and appropriate standards of governance of Cessnock City Council.
- The internal controls and reporting systems of Council reflect a good governance framework.
- Council staff are efficiently and effectively managed and supervised. d. The Council has effectively managed and carried out its private works activities. In particular, the works Council carried out for Hightrade Constructions Pty Ltd.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationships between the council, councillors and its administration.
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Auburn - August 2008
The Terms of Reference for the investigation were as follows:
To investigate and report on:
- Whether councillors and staff of Auburn Council have appropriately and responsibly exercised their planning and development control functions in regards to the Auburn Central development.
- Whether Auburn Council fulfilled its responsibilities as custodian and trustee of public assets in relation to all financial transactions related to the Auburn Central development (including the determination, collection and application of section 94 contributions, the determination and collection of other developer fees and charges and the disposal of council land).
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or council’s planning administration.
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Port Macquarie Hastings - May 2007
The Terms of Reference for the investigation were as follows:
To investigate and report on:
- Whether the council has exercised reasonable diligence in the financial management of the Port Macquarie Arts, Conference and Entertainment Centre (ACEC).
- Whether the council has properly considered what impact the centre will have on the capacity of council to carry out its functions including the provision of services and the replacement and maintenance of infrastructure.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.
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Wagga Wagga - May 2007
The Terms of Reference for the investigation were as follows:
To investigate and report on:
- Whether the relationship between elected representatives of council (whether individually or collectively as the governing body of council), senior council officers and council staff, has prevented the provision of efficient, effective and appropriate standards of governance for Wagga Wagga City Council.
- Whether the elected representatives of council are fulfilling their role and responsibilities under the Local Government Act 1993 and have adequately carried out their responsibilities in the best interest of all ratepayers and residents.
- Whether the council commands the community’s confidence and support, particularly in relation to its capacity to deliver services and facilities to the local community in accordance with the council’s Charter.
- Whether the council’s administration and management has met its responsibilities under the Local Government Act 1993 and has fulfilled its other statutory functions.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.
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Kyogle - April 2006
The Terms of Reference for the investigation were as follows:
To investigate and report on:
- Whether the council’s administration and management has met its responsibilities under the Local Government Act 1993 and has fulfilled its other statutory functions.
- Whether council, as custodian and trustee of public assets and funds, has exercised an appropriate standard of management.
- Whether council has acted in the best interests of the community and has fulfilled its responsibilities by resigning as the Reserve Trust Manager of 25 Crown Reserves. Whether council has acted appropriately in its management of Crown land.
- Whether the conduct of councillors, senior officers and council staff has resulted in efficient, effective and appropriate governance for the Kyogle Council.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between council, councillors and its administration.
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Walgett - January 2004
The Terms of Reference for the investigation were as follows:
To investigate and report on:
- Whether the council’s administration and management is able to meet its responsibilities under the Local Government Act 1993 and to fulfil its other statutory functions
- Whether council, as custodian and trustee of public assets and funds, is correctly recording and reporting on its financial transactions and financial position and is otherwise exercising reasonable financial management
- Whether the conduct of councillors and council staff results in the provisions of efficient, effective and appropriate standards of governance for Walgett Shire Council
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.
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Rylstone - 2004
The Terms of Reference for the investigation were to investigate and report on:
- Whether the council’s administration and management is able to meet its responsibilities under the Local Government Act 1993 and fulfil its other statutory functions
- Whether council, as custodian and trustee of public assets, is correctly recording and reporting on its financial transactions and financial position and is otherwise exercising reasonable financial management
- Whether the conduct of councillors and council staff results in the provision of efficient, effective and appropriate standards of governance for Rylstone Shire Council
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.