Council prepares for fee-funded litigation with New South Wales Government

The decision was made during an extraordinary meeting on Monday, four days after Local Government Minister Ron Hoenig announced a public inquiry into the council following the report.

The report gathered evidence over a three-month period detailing allegations that “senior staff in the Development Assessment Department” put pressure on workers to decide on applications in order to “increase the number of decisions reported to the state government”.

According to the report, the assessment process was often “rushed” and applications that would likely have been approved were “unnecessarily rejected”.

Mr Hoenig wrote a letter to Liverpool’s Liberal mayor Ned Mannoun last Thursday announcing his intention to dissolve the council and postpone the upcoming election. The council has seven days to respond.

When Mr Mannoun filed his motion to challenge the State Government, he said the report was “flawed in numerous respects” and the timing showed it was a “purely political move by the Labour Government”.

“Publishing this report 50 days before an election is completely undemocratic. Citizens have the right to choose who they want to be represented by,” said Mannoun.

“I am the one who has received more dirt in this room than anyone else, and I am confident enough to approach the people because I know that the people are not stupid.”

Mannoun and a number of other city councillors criticised the fact that the report names employees without first asking them to comment, saying this could potentially give rise to a lawsuit.

David Galpin, General Counsel of Liverpool FC, said the report could be challenged on the basis of natural justice against the individuals named as they were not given an opportunity to comment and there were no legal provisions governing the interim report.

Mr. Galpin estimated the legal costs to be at least $150,000, depending on the length of the trial.

Mr Mannoun and Councillor Mazhar Hadid called for an investigation into the case by the ICAC so that possible cases of corruption could be investigated individually, rather than “wrongly” accusing the entire council of wrongdoing.

“If the minister has the courage to name the people and refer them immediately to the ICAC,” said Mr Hadid, who is not opposed to the public inquiry.

However, three council members voted in favour of the investigation and considered it appropriate to suspend council activities, including the upcoming elections, until the investigation was completed.

Councillors Betty Green, Peter Harle and Karress Rhodes all stressed the importance of restoring the integrity of Liverpool City Council and addressing any potential issues identified.

“This is the only way, and if you have nothing to fear, then this is the way to clear your name,” Ms Rhodes said.

“In a process like this, allegations are made, that doesn’t mean they have to be true, but they have to be verified.”

Acting executive director Jason Brenton said postponing the upcoming election would cost taxpayers more than $800,000 and sought advice from the council’s legal department to challenge the report submitted by Mr Hoenig.