Liverpool Mayor Ned Mannoun has signalled a court challenge after the council was threatened with suspension and postponement of the September elections just days before.
On Thursday, the Office of Local Government released a 50-page investigation detailing widespread dysfunction, maladministration, and potential corruption in Liverpool Council.
Local Government Minister Ron Hoenig wrote to the Mayor of his intention to suspend the council and postpone the elections while the inquiry is conducted. The council has seven days to respond.
The council gathered at an extraordinary meeting earlier today to respond to the minister’s letter and the proposed action.
The report compiled evidence over three months and 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.”
Hoenig announced the investigation in April after John Ajaka, formerly a NSW Liberal minister, became the council’s 10th permanent or acting CEO to be sacked in eight years.
“Communities expect their council to be operating with the highest level of integrity and in their best interests,” said Hoenig on Thursday.
“It has become clear that is not the case at Liverpool City Council and there is major dysfunction across the entire organisation.”
“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.”
Mayor Mannoun has welcomed the inquiry, but has accused the government of delaying the inquiry as a means of interfering with the elections. He also described the intention to suspend the council as “purely political.”
Hoenig said the public inquiry was “a necessary measure” in restoring trust in the local 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.”