The NSW Government has today ordered a public inquiry into Liverpool City Council after an interim report provided to the Minister for Local Government flagged serious concerns about widespread dysfunction and maladministration.
The Minister has also written to the Mayor of Liverpool, Ned Mannoun, advising of his intention to suspend the Council and postpone the elections due in September while the inquiry is being conducted. The Council has been given seven days to respond.
“Communities expect their council to be operating with the highest level of integrity and in their best interests,” said NSW Local Government Minister, Ron Hoenig.
“It has become clear that is not the case at Liverpool City Council and there is major dysfunction across the entire organisation.
“These are very serious issues which are causing distress among staff and impacting the Council’s ability to deliver for its community, and they must be urgently addressed.
“A public inquiry is therefore a necessary measure to get all the issues out in the open and start the journey of restoring confidence in the Council.”
The interim report provided to the Minister forms part of an investigation announced in April 2024 under Section 430 of the Local Government Act 1993.
The scope of the Section 430 investigation focused on recruitment matters including whether the Council had complied with its statutory obligations, if conflicts of interest influenced staff appointments and any other matters that may have impacted the governance and effective administration of the Council.
However, investigators have identified matters sufficient in seriousness and volume to warrant an immediate public inquiry into the Council, the Minister confirmed.
The report details a number of areas of concern with regard to recruitment and staffing practices, procurement irregularities, allegations of inappropriate record keeping and widespread evidence of a toxic work environment.
The interim report reveals a strong likelihood that there are additional issues affecting the operations of the Council that have not yet been identified, said Mr Hoenig.
“Liverpool City Council has a vital role to play in the development of the Bradfield City Centre and the overall growth and economic success of Western Sydney,” he said.
“This action announced by the Government today is necessary to get to the bottom of some very serious and concerning matters.”
The report also outlines evidence of direct interference from the Mayor and councillors in the assessment of development applications and other compliance and regulatory activities.
The widespread and serious nature of the report has left the NSW Government with little choice but to intervene, the Local Government Minister said.
Under Section 438U of the Local Government Act 1993, a public inquiry will now be launched into the functions and operations of the elected Council and the Council’s administration.
Ross Glover has been appointed as the Commissioner to undertake the inquiry. Mr Glover was appointed by the former government in 2021 to undertake the inquiry into Wingecarribee Shire Council.
“I want to ensure the Commissioner can oversee this inquiry without the politically charged environment of an election, which is why I believe it is in the public interest to postpone the September elections for Liverpool,” said Minister Hoenig.
Should the Council be suspended, an interim administrator will be appointed to perform the functions of a governing body.
In a statement from Mayor Mannoun following the announcement, he said he was not surprised by the Minister’s call for a public inquiry.
“…There is a resolution of council asking for an inquiry and I wrote to the Minister asking for an inquiry,” the Mayor said.
“Suspending the Council is a bad idea, because it limits the capacity of the Council and its elected officials to fully respond to the report and participate in the inquiry.
“It makes me wonder why the Minister wants to deny me and my Councillors access to Council support.”
Mayor Mannoun said both he and the Council would be providing a full response to the interim report.
“From my initial read, what the Minister says is evidence of poor process is a shopping list of unfounded allegations by unknown people who may hold a grudge against the me and the Council,” he said.
“None of those named in the report have had the opportunity to rebut the allegations that have been made.
“This – to me – is a gross denial of natural justice. The minister has given seven days to make a response. I assure you a full response will be made and I will be circulating it widely.”
Council’s Acting CEO, Jason Breton said the Council will continue to co-operate with the Office of Local Government and will participate in the public inquiry when it is called.
“At this time Council is reviewing the interim report, its content and the allegations it contains and will be making a fuller response to its contents in due course,” said Mr Breton.
“In the meantime, the Council will continue to work to serve the community of Liverpool and keep delivering the excellent and wide range of services that our residents and ratepayers have come to expect.
“To that end, I have reminded our workforce that one thing remains consistent – my support for you as a team and my recognition of the work you continually do for the Communities we serve.”
The interim report from the Office of Local Government as well as the public inquiry Terms of Reference can be viewed here: https://www.olg.nsw.gov.au/councils/misconduct-and-intervention/investigations/section-430-investigations/.
