16/4/02
A report by a panel of inquiry into the City of South Perth has recommended the State Government dismiss the council.
Local Government and Regional Development Minister Tom Stephens tabled the inquiry report by Perth barrister Greg McIntyre in Parliament late today.
In the report Mr McIntyre recommends the council be dismissed.
"I have asked the city and suspended council members to respond to the report within 35 days before considering whether to proceed with the recommendations," Mr Stephens said.
The councillors were suspended in November 2000 by the then Local Government Minister Paul Omodei following an initial investigation.
In his report Mr McIntyre has made 11 adverse findings variously against the mayor, councillors and the council.
Of these, one was expressed to be against the mayor and councillors, four were expressed to be against the mayor alone, five were expressed to be against the council and one was expressed to be against the councillors.
As well, Mr McIntyre has passed on for further investigation by the police the matters of the involvement of the mayor Suzanne Pierce and the then CEO David Moylan in dealings with funds and a vehicle of the City of South Perth.
Mr McIntyre was appointed in October last year as an inquiry panel consisting of one person into the operations and affairs of South Perth.
His report has found that the mayor and councillors failed in their duty under the Local Government Act 1995 on two occasions in relation to ensuring the administration of the city had an appropriate structure.
It found that, among other things, the council acted unlawfully at three meetings held in May 2000.
The report also found that the mayor wilfully or negligently misapplied city property with respect to the former general manager, Mr Moylan, who was subsequently appointed as CEO, when she:
- transferred a vehicle,
- authorised a remuneration package; and
- authorised the payment of an additional sum of tax.
Mr McIntyre said the process for appointing a new CEO was not adequate and lacked a rational base.
He found that, in relation to the termination of the employment of a senior officer, the council failed to probe enough prior to deciding that the officer should be deemed to have resigned.
Mr McIntyre reported to the Minister that the matters which were the subject of his findings warranted recommending dismissal and that any one of the examples of misapplication of funds was sufficient for him to make that recommendation.
While the report did not allocate blame or criticism to all councillors, the law does not allow an inquiry panel to recommend dismissal of an individual mayor or councillors.
The report said the course of conduct of the council "sufficiently departs from what could be reasonably expected of a local government performing its statutory functions" to warrant dismissal.
His other recommendations relate to long-term improvements to the conduct of the City of South Perth such as audio taping meetings and appointing a council communications officer.
The Minister today provided the City of South Perth and the suspended council members with a copy of the report. The city has been asked to respond in writing within 35 days; the suspended council members may also respond if they wish within the same time period.
Mr Stephens said he would consider Mr McIntyre's recommendations after that time.
The Minister said the total estimated cost of this inquiry, including the salary and on-costs of an officer attached to the inquiry from the Department of Local Government and Regional Development, is $768,759.
Minister's office: 9213 6500
