25/6/02
The South Perth City Council has been dismissed today, following the decision of Local Government and Regional Development Minister Tom Stephens to accept the recommendation of an official inquiry into the City of South Perth.
Mr Stephens announced the decision after obtaining the approval of the Governor in Executive Council.
"The official inquiry, led by barrister Mr Greg McIntyre, made 11 serious adverse findings against the council on matters of great significance," the Minister said.
"It is clear that there has been a failure of good government at South Perth.
"The seriousness of these findings and the recommendations of the McIntyre Inquiry led me to the inescapable obligation to recommend dismissal of the council."
Mr Stephens said elections would be held to elect a new council on December 7.
The three commissioners appointed 18 months ago had been reappointed to manage the council's operations and affairs until the new council was formed.
The new councillors would have terms that expired in 2005 and 2007, and the newly elected mayor's term would expire in 2007.
Mr Stephens said the decision to dismiss the council had not been taken lightly, and he had sought advice from the Crown Solicitor's Office.
"The decision was based on the inquiry's 11 adverse findings variously against the mayor, councillors and the council and the recommendation of the report that the council be dismissed," he said.
Mr Stephens said that four critical findings of the inquiry supported its recommendation that the council be dismissed:
- there was unauthorised expenditure of ratepayers' money to pay the tax on behalf of the former chief executive officer, Mr David Moylan;
- there was an unauthorised transfer of a vehicle, the property of South Perth, to Mr Moylan;
- the council failed to adopt an appropriate process and acted unlawfully during the separation between another former chief executive officer (Mr Lyn Metcalf) and the City of South Perth; and
- the council failed to adopt an appropriate process and acted unlawfully during the appointment of a former CEO, David Moylan, by offering him the position of CEO without complying with section 5.40 of the Local Government Act 1995.
Mr Stephens said the inquiry had referred certain matters to the police, including the involvement of the mayor, Suzanne Pierce, and the then CEO David Moylan in dealings with funds and a City of South Perth vehicle.
"This decision comes at the end of a process that has been extensive and detailed, involving both sides of politics over the length of time involved," the Minister said.
"It is above party politics and is essentially about the Minister for Local Government's obligations to require of all local government the basic precepts of good government."
Mr Stephens said the inquiry reported on the operations and affairs of the city in respect of the period between January 1 and November 28, 2000.
He said the inquiry's report, which he received in March, was tabled in the Legislative Council on April 16 and was provided to the City of South Perth, the former mayor, Suzanne Pierce, the former CEO, Mr Moylan and suspended council members, who had 35 days in which to respond.
A number of submissions were received, including a detailed submission from the former mayor, Suzanne Pierce and all of these had been taken into account before a decision was made.
"This inquiry has been thorough and open," Mr Stephens said.
"Mr McIntyre went to great pains to ensure ample opportunity for response to the people whose actions were the subject of an investigation."
Mr Stephens said the commissioners now had the opportunity to put in place much needed reforms within the council process at South Perth, before passing on the administration to a new council in December.
Copies of the Report into the Inquiry into South Perth can be obtained online from
http://www.dlgrd.wa.gov.au/pub/docs/Southperth/sthpthrep.pdf Minister's office: 9213 6500
