The New South Wales government is poised to suspend a western Sydney council after an investigation uncovered evidence of widespread dysfunction and possible corruption. A public inquiry will be held into Liverpool City Council, which has been given seven days to explain why they should not be stood down.
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00:00Well, the Office of Local Government has been looking into Liverpool City Council since
00:05April. Local Government Minister Ron Hoenig ordered the probe amid reports of dysfunction
00:11within the council. It followed Mayor Ned Mnoon's sacking of the CEO, John Ojaka, who
00:18was the President of the New South Wales Legislative Council during the Berejiklian government.
00:24After receiving an interim report, Mr Hoenig has flagged his intention to suspend the council
00:29while a public inquiry is carried out. The Minister has the power to suspend the council
00:34immediately. However, he has chosen to give the council seven days to convince him why
00:40it would not be in the public interest to do so.
00:42The people of Liverpool are also entitled to a council that is not dysfunctional, one
00:50that complies with the statutory processes, and one whose councillors are governing their
00:56area appropriately.
00:58The report detailed concerns about records going missing and a toxic workplace culture
01:04where allegations of bullying, intimidation and sexual harassment weren't addressed appropriately.
01:10There was also evidence of gender bias in staff recruitment, with men being favoured
01:14over women for senior positions. Another concern raised was the non-merit-based selection of
01:21staff, including the appointment of family members to senior positions. There was also
01:27concern about a directive by Mr Ojaka to pay all directors a combined remuneration
01:35package of $380,000 a year, despite advice that those positions should be capped at $340,000
01:42per annum, with salaries to be determined on a case-by-case basis.
01:47Salaries were determined arbitrarily at high levels for senior officers that had not been
01:55market tested. You'll see a litany of those.
02:01The Minister has also flagged his intention to postpone the September Council elections
02:06until the inquiry is complete. If the Council is suspended, external administrators will
02:12be appointed to take control of it. The interim report has been referred to the Independent
02:17Commission Against Corruption, while further investigations are carried out.
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