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A report detailing "serious concerns about widespread dysfunction and maladministration" within Sydney's Liverpool City Council has sparked a state inquiry into the council and its members.
NSW Local Government Minister Ron Hoenig has said he intends to suspend the council and could after receiving the interim report, which details allegations about a number of areas within the council.
It reveals an interim investigation found several council positions, including the CEO and Directors, were filled by people with little to no experience, and also found they were given remuneration packages up to $250,000 that had no evidence of being market-tested or merit-based.
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The report also cites allegations of inappropriate record-keeping and consistent reports of a "toxic work environment," where "bullying, intimidation and sexual harassment" were not "addressed appropriately".
Female staff also alleged a gender bias within the council, where male staffers were "preferred" for advancement opportunities.
The report also alleges "direct interference" from the mayor and councillors during the assessment of development applications, as well as the wasting of public funds.
There will now be an inquiry into the council by the NSW government following the allegations.
Hoenig has also expressed his intentions to mayor Ned Mannoun to suspend the entire council and postpone the September local election while the inquiry is being conducted.
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"Communities expect their council to be operating with the highest level of integrity and in their best interests," Hoenig said.
"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."
Mannoun has responded to the investigation, calling the findings "a shopping list of unfounded allegations".
"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," he said in a statement.
"It makes me wonder why the minister wants to deny me and my councillors access to council support.
"Both the council and I will be making a full response to the interim report once we have fully reviewed its comments.
"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 me and the council.
"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."
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Acting CEO of Liverpool Council Jason Breton said it would participate in the public inquiry when it's called.
"Council will of course continue to co-operate with the Office of Local Government," he said.
"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."
"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."
