A key role of the Office of Local Government is to investigate serious breakdowns in council operations. We have 2 ways of doing this under the Local Government Act – section 430 investigations and section 438U public inquiries.
Under section 430, the Deputy Secretary, Local Government, Planning and Policy has the power to carry out investigations into council operations. This power is generally only used if a council’s conduct is having a serious impact on the local community.
Under section 438U, the Minister for Local Government has the power to appoint a commissioner to conduct a public inquiry into a council. This is a necessary step before a council can be dismissed. The Minister may order an inquiry at any time or as a result of a section 430 investigation.
Public inquiries are essential if a council becomes dysfunctional through maladministration, corruption or some other reason. After the inquiry process, the Minister may appoint an administrator.
Current public inquiries
Ongoing public inquiries and reviews:
Previous public inquiries
Completed public inquiries and final reports:
On 31 August 2021, the Minister for Local Government, the Hon Shelley Hancock MP, convened a formal public inquiry into Wingecarribee Shire Council.
The terms of reference for the inquiry was to inquire and report to the Minister for Local Government with respect to:
- Whether members of council’s governing body fully understand their roles and responsibilities and have adequately, reasonably and appropriately carried out their roles and responsibilities during the current term of Council.
- Whether, during the current term of council, there has been improper interference by the elected body of council, or by individual councillors, in operational matters, with particular reference to staffing and planning functions.
- Whether members of council’s governing body have been and will continue to be in a position to direct and control the affairs of council in accordance with the Local Government Act 1993 and to otherwise fulfil its statutory obligations.
- Any other matter that warrants inquiry, particularly those that may impact on the effective administration of council’s functions and responsibilities or the community’s confidence in the council being able to do so.
The Minister appointed Ross Glover as Commissioner to undertake the inquiry.
The inquiry report was tabled in the NSW Parliament on 13 July 2022.
Read the public inquiry documentation:
On 26 April 2021, the then Minister for Local Government, the Hon Shelley Hancock MP, announced a formal public inquiry into Central Coast Council.
The terms of reference for the inquiry was to inquire and report to the Minister for Local Government with respect to:
- In exercising its functions pursuant to sections 21, 22, 23, 23A and 24 of the LG Act, the governing body met its obligations in a manner consistent with sections 8A(1)(b), 8B(a), 8B(c) and 8B(d) of the LG Act, particularly in relation to:
- whether the governing body acted in a manner that maximised the success of gaining efficiencies and financial savings from the merger process
- whether the governing body disregarded the financial consequences of its decisions
- whether the governing body’s decisions since 2017 contributed to the financial position which the Council now finds itself in.
- In exercising its functions pursuant to section 223 of the LG Act, the governing body ensured:
- as far as possible, that decisions taken by it had regard to the financial sustainability of the council
- that it kept under review the performance of the council, including that council spending was responsible and sustainable by aligning general revenue and expenses.
- Any other matter that warrants mention, particularly those that may impact on the effective administration of council’s functions and responsibilities or the community’s confidence in the council being able to do so.
The Commissioner may make recommendations as the Commissioner sees fit having regard to the outcomes of the Inquiry, including whether all civic offices at Central Coast Council should be declared vacant.
The then Minister for Local Government approved the appointment of Roslyn McCulloch as Commissioner to undertake the Inquiry.
On March 16 2022, Minister for Local Government, the Hon Wendy Tuckerman MP, tabled Commissioner McCulloch’s report in the NSW Parliament.
View the Commissioner’s reports:
- Central Coast Council Public Inquiry – Final Report (PDF, 1.16 MB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 19 October 2021 (PDF, 189 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 18 October 2021 (PDF, 355 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 15 October 2021 (PDF, 369 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 13 October 2021 (PDF, 439 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 12 October 2021 (PDF, 362 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 11 October 2021 (PDF, 439 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 8 October 2021 (PDF, 786 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 7 October 2021 (PDF, 423 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 6 October 2021 (PDF, 332 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 5 October 2021 (PDF, 418 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 28 September 2021 (PDF, 42 KB)
- Central Coast Council Public Inquiry – Public Hearing – Transcript 27 September 2021 (PDF, 249 KB)
On 24 January 2019, the Minister for Local Government, the Hon Gabrielle Upton MP announced a formal public inquiry into Balranald Shire Council.
The terms of reference for the inquiry was to inquire and report to the Minister for Local Government with respect to:
- In exercising its functions pursuant to sections 21, 22, 23 and 24 of the LG Act, the governing body is meeting its obligations to provide strong and effective leadership in a manner consistent with the guiding principles set out in sections 8A, 8B and 8C of the LG Act, including whether its leadership with respect to Council’s management of its responsibilities relating to long term financial planning, public land management and provision of services is appropriate.
- In exercising its functions pursuant to sections 21, 22, 23 and 24 of the LG Act Council is meeting its obligations to act as a responsible employer, providing a safe, consultative and supportive working environment for the general manager and other staff in a manner consistent with the guiding principles set out in section 8A(1)(i) of the LG Act and any other statutory requirements considered relevant.
- In exercising its functions pursuant to sections 21, 22, 23 and 24 and Part 2, Divisions 2 and 3 of Chapter 9 of the LG Act, the governing body’s Mayor and councillors’ conduct and decision-making both collectively and/or individually demonstrates an understanding of their role under sections 226 and 232 of the LG Act.
- In exercising its functions pursuant to sections 21, 22, 23 and 24 of the LG Act, the governing body acts in accordance with the guiding principles set out in section 8A of the LG Act including whether the governing body commands the confidence of its community.
- In exercising its functions pursuant to sections 21, 22, 23 and 24 of the LG Act, Council has complied with its obligations as Reserve Trust Manager under the Crown Lands Act 1989 of the Balranald Caravan Park.
- Any other matter that warrants mention, particularly those that may impact on the effective administration of Council’s functions and responsibilities or the community’s confidence in the Council being able to do so.
The Commissioner may make recommendations as the Commissioner sees fit having regard to the outcomes of the inquiry, including whether all civic offices at Balranald Shire Council should be declared vacant.
The Minister for Local Government approved the appointment of Roslyn McCulloch as Commissioner to undertake the inquiry.
On 29 January 2020, the Minister for Local Government, the Hon. Shelley Hancock MP tabled Commissioner McCulloch’s report in the NSW Parliament.
Read the Balranald Shire Council Public Inquiry Report (PDF, 791 KB)
On 27 June 2018 the Minister for Local Government, the Hon. Gabrielle Upton MP announced a formal public inquiry into Blue Mountains City Council.
The terms of reference for the inquiry was to inquire and report to the Minister for Local Government with respect to:
- In exercising its functions pursuant to sections 23 and 24 of the LG Act, the Council and its governing body has since 2012 dealt with, and is dealing with, asbestos management issues at the Council in accordance with the guiding principles in section 8A(1)(a), (c) and (2)(c), (e) and the role of the governing body in section 223(1)(a), (b), (d), (g), (h) and (l) of that Act.
- In exercising their functions pursuant to Part 2 of Chapter 9 of the LG Act, the mayor and councillors of the council have since 2012 exercised, and are exercising, a reasonable degree of care and diligence in dealing with asbestos management issues at the council in accordance with section 439(1) of the Local Government Act 1993.
- In exercising their functions pursuant to Parts 1 and 2 of Chapter 11 of the LG Act, the council and its governing body has since 2012 determined to employ and/or engage Mr Mark Mulligan, Mr John Hargreaves and other staff or contractors in accordance with the guiding principles in section 8A(1)(a) and (2)(e) and the role of the governing body in section 223(1)(j) and (l), as well as section 349 of that Act.
- In exercising its functions pursuant to sections 23 and 24 of the LG Act, the council’s process of engaging Clyde & Co and McCullough Robertson lawyers (through McPhee Kelshaw solicitors and conveyancers), including with respect to management of any conflicts of interest, to conduct independent investigations into asbestos related incidents and employment issues, respectively, was in accordance with the guiding principles in sections 8A(1)(b), (h), (2)(e) and 8B and the role of the governing body in section 223(1)(c) and (l) of that Act.
- In exercising functions pursuant to section 24 and Part 3 of Chapter 13 of the LG Act, the council and its governing body has since 2012 made funding decisions so as to address asbestos management in accordance with the guiding principles in sections 8A(1)(b) and 8B and the role of the governing body in s. 223(1)(c) and (l) of that Act.
- In exercising functions pursuant to Parts 1 and 2 of Chapter 11 of the LG Act, the council and its governing body since 2012 has facilitated, and is facilitating, a consultative and supportive working environment in accordance with the guiding principle in section 8A(1)(i) and the role of the governing body in section 223(1)(i), (j) and (l) of that Act.
- In exercising its functions pursuant to sections 23 and 24 of the LG Act, the council has co-operated, and is co-operating, effectively with State Government agencies in addressing asbestos management issues in accordance with the guiding principle in section 8A(1)(e) and the role of the governing body in section 223(1)(l) of that Act.
- In exercising functions pursuant to parts 1 and 2 of chapter 11 and part 2 of chapter 13 of the LG Act, the governing body and the senior staff of the council has determined, reviewed and re-determined an appropriate organisational structure and resource allocation in accordance with the guiding principle in section 8A(1)(c), (2)(c) and the role of the governing body in section 223(1)(g), (h) and (l) of that Act.
- In exercising its functions pursuant to sections 23 and 24 of the LG Act, the response of council and the governing body to the asbestos management issues raised in 2017 has been and is in accordance with the guiding principle in section 8A(1)(a) and the role of the governing body in section 223(1)(b), (g), (h), (k) and (l) of that Act.
The inquiry was limited to matters relating to the carrying out of provisions of the LG Act, in recognition that the carrying out of certain other legislative provisions is the subject of separate investigation and/or regulatory action by SafeWork NSW and the NSW Environment Protection Authority.
The Minister for Local Government approved the appointment of Richard Beasley SC as Commissioner to undertake the Inquiry.
View the reports:
On 21 January 2016 the then Minister for Local Government, the Hon Paul Toole MP, announced a formal public inquiry into Auburn City Council.
The terms of reference for the inquiry was to inquire and report on the following matters relating to Auburn City Council:
- Whether the council and its elected representatives have complied with applicable laws, council’s adopted Code of Conduct, the procedures for the administration of the code of conduct, relevant planning legislation and council’s administrative rules and policies and have fulfilled its and their legislative duties, powers and functions;
- Whether the relationships between councillors are conducted properly to ensure that individuals do not receive favourable treatment from decisions made by the elected council or by council staff;
- Whether the governing body commands the community’s confidence, and will continue to be in a position, to direct and control the affairs of council in accordance with the Local Government Act 1993, so that council may fulfill the charter, provisions and intent of the Local Government Act 1993 and otherwise fulfill its statutory functions; and
- Any other matters that warrant inquiry, particularly those that may impact on the effective administration of council’s functions and responsibilities or the community’s confidence in the Council being able to do so.
The Commissioner may make such recommendations as the Commissioner sees fit having regard to the outcomes of the Inquiry.
The then Minister for Local Government approved the appointment of Richard Beasley SC as Commissioner to undertake the Inquiry.
On 9 March 2017, Minister for Local Government, the Hon Gabrielle Upton MP tabled Commissioner Beasley’s report in the NSW Parliament.
Read the Auburn City Council Public Inquiry Report (PDF, 1.54 MB)
On 15 January 2016 the Minister for Local Government, the Hon Paul Toole MP, announced a formal public inquiry into Murray Shire Council.
The terms of reference for the inquiry was to inquire and report on the following matters relating to Murray Shire Council:
- Whether the elected representatives and staff have, since the appointment of the current general manager, complied with applicable laws, codes, administrative procedures and policies and have fulfilled its and their duties, powers and functions particularly in relation to the relationships between councillors, the general manager and senior and other staff of council.
- Whether the council has, since the appointment of the current general manager, complied with its work, health and safety obligations as the general manager’s employer.
- Whether the elected representatives have been and will continue to be in a position to direct and control the affairs of council in accordance with the Local Government Act 1993 and other relevant Acts, so that Council may fulfil its charter, the provisions of the Local Government Act 1993 and otherwise fulfil its statutory functions and obligations.
- Any other matter that warrants mention, particularly those that may impact on the effective administration of council’s functions and responsibilities or the community’s confidence in the council being able to do so.
The Commissioner may make such recommendations as the Commissioner sees fit having regard to the outcomes of the Inquiry.
Mr Anthony Hudson was appointed as Commissioner to undertake the Inquiry.
On 9 March 2017, the Minister for Local Government, the Hon Gabrielle Upton MP, tabled Commissioner Hudson’s report in the NSW Parliament.
Read the Murray Shire Council Public Inquiry Report (PDF, 5.82 MB)
On 21 January 2016 the then Minister for Local Government, the Hon Paul Toole MP, announced a formal public inquiry into North Sydney Council.
The terms of reference for the inquiry was to inquire and report on the following matters relating to North Sydney Council:
- Whether the elected representatives have been, since December 2013, and will continue to be, in a position to direct and control the affairs of council in accordance with the Local Government Act 1993, so that council may fulfil its charter, the provisions of the Local Government Act 1993 and otherwise fulfil its statutory functions.
- Whether, since December 2013, the council and its elected representatives have complied with applicable laws, council’s adopted code of conduct, the procedures for the administration of the code of conduct, council’s code of meeting principles and practice and council’s administrative rules and policies and have fulfilled its and their legislative duties, powers and functions particularly with respect to their relationships with each other and with senior and other staff of council.
- The Commissioner may make such recommendations as he sees fit having regard to the outcomes of the Inquiry.
The then Minister approved the appointment of Mr Thomas Howard SC as Commissioner to undertake the Inquiry. Mr Howard specialises in the areas of environmental law, urban planning and local government law.
On 9 March 2017, the Minister for Local Government, the Hon Gabrielle Upton MP, tabled Commissioner Howard’s report in the NSW Parliament.
Read the North Sydney Council Public Inquiry Report (PDF, 1.89 MB)
On 19 June 2014 the Minister for Local Government, the Hon Paul Toole MP, announced a public inquiry into Central Darling Shire Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations to the Minister for Local Government as to whether all civic offices at Central Darling Shire Council should be declared vacant.
The inquiry will have particular regard to:
- Whether the council has properly carried out its functions of financial management, asset management, legislative compliance and community leadership.
- In view of the range and complexity of management issues, whether the elected council has the capacity to resolve the outstanding issues and establish a sound foundation for the future sustainability of the council.
- Any other matters that warrant mention, particularly where they may impact on the effective administration of the council area.
The Commissioner may make such other recommendations as the Commissioner sees fit.”
The Minister has appointed Mr Richard Colley as Commissioner to undertake the Inquiry. Mr Colley is currently Chair of the NSW Local Government Grants Commission. Mr Colley has had a successful career in both the private and public sector. Mr Colley conducted the Public Inquiry into Shellharbour City Council in 2008.
Appointed Commissioner: Mr Richard Colley
Read the Central Darling Shire Council Report (PDF, 1.22 MB)
On 3rd April 2008 the Minister for Local Government, the Hon Paul Lynch MP, announced a public inquiry into Shellharbour City Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations to the Minister for Local Government as to whether all civic offices at at Shellharbour City Council should be declared vacant.
The inquiry will have particular regard to:
- The conduct of the elected representatives of council (whether individually or collectively as the governing body of council) including their relationships with senior and other staff of council.
- Whether the elected representatives fully understand their roles and responsibilities and have adequately, appropriately and reasonably carried out their roles and responsibilities in the best interests of all ratepayers and residents.
- Any other matters that warrant mention, particularly when it may impact on the effective administration of the council area.
The Commissioner may make other recommendations as the Commissioner sees fit.
Read the Shellharbour City Council Public Inquiry Report (PDF, 4.3 MB)
On 24 August 2007, the Minister for Local Government, the Hon Paul Lynch MP, announced a second public inquiry into Brewarrina Shire Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations to the Minister for Local Government as to whether all civic offices at at Brewarrina Shire Council should be declared vacant.
The inquiry will have particular regard to:
- The adequacy of Council’s performance since the release of the public inquiry report into Brewarrina Shire Council dated 2 December 2005, in particular in addressing the following issues of concern identified in the report.
- Council’s relationship with the local community and in particular its relationship with the local indigenous community and the Community Working Party
- The capacity of the elected council to effectively conduct council meetings in accordance with the requirements of the Local Government Act 1993, the Local Government (General) Regulation 2005 and council’s code of meeting practice and
- The performance of council’s administration in establishing and maintaining appropriate systems and policies to deliver efficient and effective governance of the council area and in managing council’s finances including appropriate control of expenditure and undertaking appropriate revenue raising activities.
Any other matters that warrant mention, particularly when it may impact on the effective administration of the council area and/or the working relationships between the council, councillors and its administration. The Commissioner may make such other recommendations as he sees fit.
Appointed Commissioner: Mr John Davies.
Read the Brewarrina Shire Council Public Inquiry Final Report (PDF, 8.3 MB)
On 27 July 2007 the Minister for Local Government, the Hon Paul Lynch MP, announced a formal public inquiry into Port Macquarie-Hastings Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations to the Minister for Local Government as to whether all civic offices at Port Macquarie-Hastings Council should be declared vacant.
The inquiry will have particular regard to:
- Whether the council exercised prudent financial and project management regarding the planning and development of the infrastructure project known as “The Glasshouse”.
- Whether the council properly considered what impact the Glasshouse project would have on the ongoing ability of council to provide adequate, equitable and appropriate services and facilities to the community.
- Whether the council properly consulted and engaged with its community and exercised appropriate openness and transparency in its decision making for approving and undertaking the Glasshouse infrastructure project.
- Any other matter that warrants mention, particularly where it may impact on the effective administration of the area and/or the management of and working relationships within the council.
The Commissioner may make such other recommendations as he sees fit.”
Appointed Commissioner: Mr Frank Willan.
Read the Port Macquarie–Hastings Council Public Inquiry Report (PDF, 3 MB)
On 21 September 2006 the Minister for Local Government, the Hon Kerry Hickey MP, announced a formal public inquiry into Broken Hill City Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations to the Minister for Local Government as to whether all civic offices at Broken Hill City Council should be declared vacant.
The inquiry will have particular regard to:
- The conduct of the elected representatives of council (whether individually or collectively as the governing body of council) including their relationships with senior and other staff of council.
- Whether the elected representatives fully understand their roles and responsibilities and have adequately, appropriately and reasonably carried out their roles and responsibilities in the best interest of all ratepayers and residents.
- Any other matters that warrant mention, particularly when it may impact on the effective administration of the council area.
The Commissioner may make other recommendations as the Commissioner sees fit.”
Appointed Commissioner: Hon David Simmons OAM.
Read the Broken Hill Council Public Inquiry Report (PDF, 275 KB)
On 22nd June 2005 the Minister for Local Government, the Hon Tony Kelly MLC, announced a formal public inquiry into Brewarrina Shire Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations on the efficiency and effectiveness of the governance of Brewarrina Shire Council.
The inquiry will have particular regard to:
- Whether the elected representatives fully understand their role and responsibilities and have adequately, appropriately and reasonably carried out their responsibilities in the best interests of all ratepayers and residents.
- Whether the practices and procedures adopted by the council in the conduct of its meetings comply with the Local Government Act 1993, the Local Government (Meetings) Regulation 1999 and the council’s adopted Code of Meeting Practice, and whether the council’s adopted code of meeting practice itself complies with the Act and Regulation.
- Whether the council’s other policies and codes in relation to its governance adopted under the Local Government Act and Regulations comply with the Local Government Act and Regulations.
- The appropriateness of the procedures and processes adopted by council in relation to its environmental planning responsibilities, including their application to the council’s own projects.
- The appropriateness and efficacy of the relationship between elected representatives and council staff, and between council, the community and other Commonwealth and State Government agencies providing funding or services in the council area.
- Whether there has been adequate annual or longer term planning for the provision of services by council within its local government area.
- Whether the elected representatives are in a position to adequately direct and control the affairs of council in accordance with the Local Government Act 1993, so that council may fulfil the charter, provisions and intent of the Local Government Act and otherwise fulfil its statutory functions.
- Whether the council has exercised prudent financial management and control; and
- Any other matter that warrants mention, particularly where it may impact on the effective administration of the area and/or the working relationships between the council, councillors and its administration.
The Commissioner may make other recommendations as he sees fit, including whether all civic offices in relation to the council should be declared vacant”.
Appointed Commissioner: Mr Ross Woodward.
Read the Brewarrina Shire Council Public Inquiry Report (PDF, 1 MB)
On 25th February 2004 the Minister for Local Government, the Hon Tony Kelly MLC, announced a formal public inquiry into Walgett Shire Council.
The terms of reference for the inquiry was to inquire, report and make appropriate recommendations to the Minister for Local Government on the efficiency and effectiveness of the governance of Walgett Shire Council.
The Inquiry will have particular regard to:
- Whether the elected representatives have been and will continue to be in a position to direct and control the affairs of council in accordance with the Local Government Act 1993, so that council may fulfil the Charter, provisions and intent of the Local Government Act 1993 and otherwise fulfil its statutory functions.
- The conduct of elected representatives of council (whether individually or collectively as the governing body).
- Any other matter that warrants mention, particularly where it may impact on the effective administration of the area and/or the management of and working relationships within the council.
The Commissioner may make other recommendations as he sees fit, including whether all civic offices in relation to the council should be declared vacant so as to ensure that an appropriate structure can be put in place to provide optimum community leadership.”
Appointed Commissioner: Mr Robert Bulford.
Read the Walgett Shire Council Public Inquiry Report (PDF, 4.1 MB)
On 10th November 2004 the Minister for Local Government, the Hon Tony Kelly MLC, announced a formal public inquiry into Tweed Shire Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations to the Minister for Local Government on the efficiency and effectiveness of the governance of Tweed Shire Council.
The inquiry will have particular regard to:
- Whether the elected representatives have adequately, appropriately and reasonably carried out their responsibilities in the best interests of all ratepayers and residents, in an environment free from conflicts of interest.
- The appropriateness of the procedures and processes adopted by council in relation to its environmental planning responsibilities, including the processing of applications for development, particularly those of a significant nature.
- The appropriateness of the relationship between elected representatives and proponents of development in the council area.
- Whether the elected representatives are in a position to adequately direct and control the affairs of council in accordance with the Local Government Act 1993, so that council may fulfil the Charter, provisions and intent of the Local Government Act 1993 and otherwise fulfil its statutory functions.
- Any other matter that warrants mention, particularly where it may impact on the effective administration of the area and/or the working relationships between the council, councillors and its administration.
The Commissioner may make other recommendations as he sees fit, including whether all civic offices in relation to the council should be declared vacant.”
Appointed Commissioner: Professor Maurice Daly BA PhD MIMC.
Read the reports:
On 16th January 2004 the Minister for Local Government, the Hon Tony Kelly MLC, announced a formal public inquiry into Rylstone Shire Council.
The terms of reference of the inquiry was to inquire, report and provide recommendations to the Minister for Local Government on the efficiency and effectiveness of the governance of Rylstone Shire Council.
The Inquiry will have particular regard to:
- Whether the elected representatives command the community’s confidence and support as to their capability, and whether the elected representatives have been and will continue to be in a position to direct and control the affairs of council in accordance with the Local Government Act 1993, so that council may fulfil the Charter, provisions and intent of the Local Government Act 1993 and otherwise fulfil its statutory functions.
- Whether the council has exercised prudent financial management.
- Council’s process of appointment and management of staff and particularly during the 2003 organisational restructure.
- Any other matter that warrants mention, particularly where it may impact on the effective administration of the area and/or the working relationships between the Council, Councillors and its administration.
The Commissioner may make other recommendations as they see fit, including whether all civic offices in relation to the council should be declared vacant so as to ensure that an appropriate structure can be put in place to provide optimum community leadership.
Appointed Commissioner: Mrs Gabrielle Kibble AO.
Read the Rylstone Shire Council Public Inquiry Report (PDF, 2.9 MB)
On 5th November 2003 the Minister for Local Government, the Hon Tony Kelly MLC, announced a formal public inquiry into Liverpool City Council.
The terms of reference for the inquiry was to inquire, report and make any appropriate recommendations regarding Liverpool City Council.
The Inquiry will have particular regard but is not limited to the following:
- Whether the council has exercised prudent financial management regarding the development and management of infrastructure projects such as those within the Woodward Park precinct (the “Oasis” project).
- Whether the council exercised appropriate openness and transparency in its decision making for approving and undertaking major infrastructure projects.
- Whether the council properly considered what impact major infrastructure projects would have on the ongoing ability of council to provide services to the community.
- Council’s process of appointment and management of senior staff.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationships between the council, councillors and its administration.
The Commissioner may make such recommendations as the Commissioner sees fit including whether all civic offices in relation to the council should be declared vacant so as to ensure that an appropriate structure can be put in place to provide optimum community leadership.”
Appointed Commisssioner: Emeritus Professor Maurice Daly BA PhD MIMC.
Read the Liverpool City Council Public Inquiry Report (PDF, 1.8 MB)
On 15 January 2003 the Minister for Local Government, the Hon Harry Woods MP, announced a formal public inquiry into Warringah Council.
The terms of reference for the inquiry was to inquire, report and provide recommendations to the Minister for Local Government on the efficiency and effectiveness of the governance of Warringah Council.
The inquiry will have particular regard to:
- The conduct of elected representatives of council (whether individually or collectively as the governing body of council).
- Whether the elected representatives command the community’s confidence and support as to their capability, and whether the elected representatives have been and will continue to be in a position, to direct and control the affairs of council in accordance with the Local Government Act 1993, so that council may fulfil the charter, provisions and intent of the Local Government Act 1993 and otherwise fulfil its statutory functions.
The Commissioner may make other recommendations as he sees fit, including whether all civic offices in relation to council should be declared vacant so as to ensure that an appropriate structure can be put in place to provide optimum community leadership.”
Appointed Commissioner: Emeritus Professor Maurice Daly BA PhD MIMC.
Read the reports:
- Warringah Council Public Inquiry Volume 1 (PDF, 1.1 MB)
- Warringah Council Public Inquiry Volume 2 Section 3 (PDF, 10 MB)
- Warringah Council Public Inquiry Volume 2 Section 4 (PDF, 5.3 MB)
- Warringah Council Public Inquiry Volume 2 Section 5 (PDF, 8.6 MB)
- Warringah Council Public Inquiry Volume 2 Section 6 (PDF, 6.2 MB)
- Warringah Council Public Inquiry Volume 2 Section 7 (PDF, 16.6 MB)
Section 430 investigations
Current investigations
Ongoing investigations and reviews under section 430 of the Local Government Act 1993:
The Office of Local Government has determined that an investigation should be conducted under the provisions of Section 430 of the Local Government Act 1993 in relation to Shoalhaven City Council.
Terms of Reference for the investigation
To investigate and report:
- whether the recruitment process for the General Manager was conducted in a transparent, fair, and merit-based manner in accordance with legislative, regulatory and best practice requirements
- the nature and influence of Stephen Blackadder Consultancy’s involvement in the recruitment and appointment of the Council’s General Manager, and to determine whether all required recruitment records, documents and communications were appropriately created, managed and retained in compliance with relevant legislative, regulatory and policy obligations
- whether conflicts of interest involving the recruitment panel was properly declared, managed and addressed throughout the recruitment process.
- whether serious maladministration or governance failure has occurred by failing to properly deal with Code of Conduct matters, contrary to the requirements of the Local Government Act 1993 , the Model Code of Conduct, and associated procedures in relation to confidentiality breaches during the recruitment process
- whether the Council’s recruitment policies, procedures, and training programs are appropriate, effective, and compliant with the relevant legislative and procedural frameworks
- any other matter relevant to, or arising from, the investigation.
Shoalhaven City Council – Investigation – Terms of Reference (PDF, 503 KB)
The Office of Local Government has determined that an investigation should be conducted under the provisions of Section 430 of the Local Government Act 1993 in relation to Liverpool City Council.
Terms of reference for the investigation
a) Recruitment and selection matters
To investigate and report on the recruitment, selection process and appointment of persons into senior positions following the Council’s restructure from 2022 through 2023.
In particular:
- Whether the Council complied with statutory obligations and its Policies and Procedures in recruitment and selection relating to the occupants for the relevant position
- Whether the recruitment and selection process for the relevant positions was merit based and/or whether other identifiable factors influenced recruitment and selection processes and if so, what were those factors
- Whether the Council complied with Council Policies and its obligations under the NSW State Records Act in regard to the maintenance and retention of records relating to recruitment and selection for the relevant positions
- Whether there were any conflicts of interest which may have influenced recruitment for the relevant positions, and whether any such conflicts may have influenced recruitment and selection processes for those positions
- Whether councils finances are being adversely affected as a result of staffing decisions including, but not limited to, termination payouts.
- Whether concerns raised regarding the conduct of staff or councillors have been adequately managed and addressed to ensure a safe and functional operation of Council consistent with WHS obligations, and
- Any other related matters identified by this Office that may have impacted upon the governance and effective administration of the Council
b) Review and report on the status and implementation of recommendations made relevant to a Public Interest Disclosure investigation report dated 13 September 2022 into allegations of mismanagement by council relating to the Liverpool Civic Place Project.
NOTE: The matters listed above will be the subject of separate reports.
Liverpool City Council – Investigation – Terms of Reference (PDF, 58 KB)
Notice of Section 430 Investigation – New England County Council trading as New England Weeds Authority (NEWA)
The Office of Local Government has determined that an investigation should be conducted under the provisions of Section 430 of the Local Government Act 1993 in relation to New England County Council, trading as New England Weeds Authority (NEWA).
The terms of reference for the investigation are to investigate and report upon:
- Whether the former general manager of New England Weeds Authority (NEWA), Mr Tim Weeks, was, at all times, paid in accordance with the terms of the employment contract between Mr Weeks and NEWA.
- Any other relevant matters, including but not limited to, the process undertaken for any variations to Mr Week’s contract and agreed renumeration, and the details and amounts of financial claims made by Mr Weeks during his tenure.
New England County Council – Investigation – Terms of Reference (PDF, 247 KB)
Completed investigations
Reports on completed investigations under section 430 of the Local Government Act 1993:
The terms of reference issued by the Department on 10 August 2022 requested an investigation and report on the following matters in relation to the Mascot Towers development:
- Whether the councillors of Botany Council met their responsibilities under the LG Act, the Local Government (General) Regulation 2005 (LG Regulation), and other relevant legislation and any relevant standards in relation to the granting of relevant interim and final occupation certificates.
- Whether the officers of the council met their responsibilities under the LG Act and LG Regulation, and other relevant legislation and any relevant standards in relation to the granting of relevant interim and final cccupation certificates.
- In considering the above, whether or not the relevant people met their responsibilities under the LG Act and LG Regulation, and other relevant legislation and any relevant standards, in relation to:
(i) the assessment and determination of the relevant development application
(ii) the granting of the relevant construction certificates. - Any other matter that warrants mention in relation to the council’s responsibilities and conduct.
The terms of reference for the investigation were to investigate and report on:
- The dealings between Murray River Council (council) and Murray River Energy Pty Ltd (ACN 628 094 879) (MRE) and any other entities or individuals relating to a proposed ethanol plant (the Plant) at Moama (the Project) and, in particular, in regard to:
- the dealings between council, MRE, any other entities or individuals and the promoters of the Project
- the circumstances in which council acquired land (the Land) at Moama as a site for the Plant
- the circumstances in which council provided a loan to MRE
- the advice provided to councillors and the community regarding the Project.
- Whether, in its dealings relating to the Project, council exercised appropriate probity, risk management and due diligence processes.
- Whether in providing money to MRE or any other entity or individual, Council breached the Local Government Act 1993, the Local Government (General) Regulation 2005 and/or Ministerial Investment Order of 12 January 2011.
- Whether council adequately and properly considered the financial risks to council when acquiring the land and providing funds to MRE or any other entity or individual.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of council, its councillors and its administration.
The terms of reference for the investigation were to investigate and report on:
- Whether the councillors of Warrumbungle Shire Council are fulfilling their role and responsibilities under the Local Government Act 1993, the Local Government (General) Regulation 2005 and other relevant legislation and any relevant standards and, in particular, in relation to:
- council’s consideration of its 2017 waste services tender for the supply and installation of skip bins.
- Strategic, operational and management aspects of its water resources function.
- Whether the council officers of Warrumbungle Shire Council are fulfilling their role and responsibilities under the Local Government Act 1993, the Local Government (General) Regulation 2005 and other relevant legislation and any relevant standards and, in particular, in relation to:
- Council’s consideration of its 2017 waste services tender for the supply and installation of skip bins.
- Strategic, operational and management aspects of its water resources function.
- Whether the conduct of councillors (whether individually or collectively as the governing body of council), senior council officers and council staff, has hindered the provision of efficient, effective and appropriate standards of governance.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.
The terms of reference for the investigation were to investigate and report on:
The governance of the Hurstville City Council including:
- its consideration at its ordinary meeting of 20 May 2015 of a staff report recommending possible enforcement action into allegations of breaches of the conditions of development consents, illegal demolition and dumping and/or removal of asbestos in relation to property owned by the Mayor, Clr Con Hindi, at 40 Crump Street, Mortdale and the circumstances giving rise to its decision in relation to that matter, and
- its suspension of the general manager, Mr Victor Lampe, at the same meeting, the circumstances giving rise to that decision, and any subsequent action taken by the council and councillors in relation to that decision, and
- its management of complaints about Mr Lampe, and
- such other matters as the investigator considers to be relevant.
Hurstville City Council – Investigation Report (PDF, 846 KB)
The terms of reference for the investigation were as follows:
To investigate and report on:
- Whether there has been maladministration and/or serious and substantial waste of local government money in relation to Strath field Municipal Council’s:
- procurement and expenditure on services from the International Property Group Pty Ltd (ACN 117 214 829)
- procurement and expenditure on legal services and associated professional advice since 1 July 2011
- decisions of 7 May 2013 and 2 July 2013 pertaining to the appointment of an external auditor and the related tender processes.
- Strathfield Municipal Council’s conduct and performance as the Trust Manager of the Hudson Park (R62163) Reserve Trust since 1 July 2009.
- Any other matter that arises directly from the principal investigation of the council’s work and activities set out in the terms of reference.
Strathfield Municipal Council – Investigation Report (PDF, 61 MB)
The terms of reference for the investigation were as follows:
To investigate and report on:
- The processes used by council to select, engage, manage and pay consultants, contractors or other persons/entities, having particular regard to the following:
- any arrangements that council has entered into in the last 3 years, involving payments to a single entity or individual totalling $150,000 or more, for the provision of services with a high labour content
- any arrangements referred in council documents as a “body hire” arrangement
- whether persons engaged under or pursuant to such arrangements should be properly classified as independent contractors, employees of council and/or as employees of another entitythe systems and processes the council has in place to properly deal with its different statutory obligations arising for each class of person engaged under such arrangements.
- The engagement of a contractor/consultant to temporarily fulfil the role of manager of customer and community services for an extended period, having particular regard to the following:
- whether this person was or should have been engaged as an employee of council
- the process of selecting and appointing the person to undertake the role in a temporary/acting capacity
- whether a contract existed between this person and the council and if so, whether that contract was subject to the tendering provisions of section 55 of the Act.
- The selection and engagement of contractors or other persons to deliver a program described in council documents as the Leadership Development Program, having particular regard to the following:
- the scoping, planning and budgetary process used to inform the decision to approve and control the delivery of the program
- the approval of the program
- the identification and assessment of potential service providers
- whether tenders were or should have been called for the delivery of the program
- whether the program was or should have been approved by the elected council
- whether the program was or should have been disclosed in the council’s annual management plan and/or reported on in the council’s annual reports
- the adequacy and manner of reporting of expenditure associated with the delivery of the program.
- The adequacy of the council’s policies, procedures and delegations governing tendering and the procurement and payment of services, having particular regard to those services with a high labour content such as consultants and those for provision of professional services.
- The level of compliance with council’s policies, procedures and delegations governing tendering, the procurement and payment of services and the adequacy of controls to ensure such compliance.
- Any other matter that warrants mention particularly where it may impact upon the effective administration of the area.
The terms of reference for the investigation were as follows:
Whether the Council is able to meet its responsibilities under the Local Government Act 1993 (the Act). In particular, whether:
- The conduct of councillors and council staff results in the provision of efficient, effective and appropriate standards of governance of Cessnock City Council.
- The internal controls and reporting systems of council reflect a good governance framework.
- Council staff are efficiently and effectively managed and supervised. d. The council has effectively managed and carried out its private works activities. In particular, the works council carried out for Hightrade Constructions Pty Ltd.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationships between the council, councillors and its administration.
The terms of reference for the investigation were as follows:
To investigate and report on:
- Whether councillors and staff of Auburn Council have appropriately and responsibly exercised their planning and development control functions in regards to the Auburn Central development.
- Whether Auburn Council fulfilled its responsibilities as custodian and trustee of public assets in relation to all financial transactions related to the Auburn Central development (including the determination, collection and application of section 94 contributions, the determination and collection of other developer fees and charges and the disposal of council land).
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or council’s planning administration.
The terms of reference for the investigation were as follows:
To investigate and report on:
- Whether the council has exercised reasonable diligence in the financial management of the Port Macquarie Arts, Conference and Entertainment Centre (ACEC).
- Whether the council has properly considered what impact the centre will have on the capacity of council to carry out its functions including the provision of services and the replacement and maintenance of infrastructure.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.
Port Macquarie Hastings – Investigation Report (PDF, 472 KB)
The terms of reference for the investigation were as follows:
To investigate and report on:
- Whether the relationship between elected representatives of council (whether individually or collectively as the governing body of council), senior council officers and council staff, has prevented the provision of efficient, effective and appropriate standards of governance for Wagga Wagga City Council.
- Whether the elected representatives of council are fulfilling their role and responsibilities under the Local Government Act 1993 and have adequately carried out their responsibilities in the best interest of all ratepayers and residents.
- Whether the council commands the community’s confidence and support, particularly in relation to its capacity to deliver services and facilities to the local community in accordance with the council’s charter.
- Whether the council’s administration and management has met its responsibilities under the Local Government Act 1993 and has fulfilled its other statutory functions.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.
Wagga Wagga City Council – Investigation Report (PDF, 658 KB)
The terms of reference for the investigation were as follows:
To investigate and report on:
- Whether the council’s administration and management has met its responsibilities under the Local Government Act 1993 and has fulfilled its other statutory functions. Whether council, as custodian and trustee of public assets and funds, has exercised an appropriate standard of management.
- Whether council has acted in the best interests of the community and has fulfilled its responsibilities by resigning as the Reserve Trust Manager of 25 Crown Reserves.
- Whether council has acted appropriately in its management of Crown land.
- Whether the conduct of councillors, senior officers and council staff has resulted in efficient, effective and appropriate governance for the Kyogle Council.
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between council, councillors and its administration.
The terms of reference for the investigation were as follows:
To investigate and report on:
- Whether the council’s administration and management is able to meet its responsibilities under the Local Government Act 1993 and to fulfil its other statutory functions
- Whether council, as custodian and trustee of public assets and funds, is correctly recording and reporting on its financial transactions and financial position and is otherwise exercising reasonable financial management
- Whether the conduct of councillors and council staff results in the provisions of efficient, effective and appropriate standards of governance for Walgett Shire Council
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.
The terms of reference for the investigation were to investigate and report on:
- Whether the council’s administration and management is able to meet its responsibilities under the Local Government Act 1993 and fulfil its other statutory functions
- Whether council, as custodian and trustee of public assets, is correctly recording and reporting on its financial transactions and financial position and is otherwise exercising reasonable financial management
- Whether the conduct of councillors and council staff results in the provision of efficient, effective and appropriate standards of governance for Rylstone Shire Council
- Any other matter that warrants mention, particularly where it may impact upon the effective administration of the area and/or the working relationship between the council, councillors and its administration.