A report released by Local Government Minister Melissa Horne in parliament this week found council could no longer effectively carry out its responsibilities in accordance with the Local Government Act.
The report, called the Commission of Inquiry into Moira Shire Council, was written by commissioners Frances O’Brien and John Tanner.
The report said governance at the shire had “deteriorated as such that council can no longer effectively carry out its responsibilities”.
It also said council failed to manage the performance of chief executive Clare Keenan, and also failed to ensure the health and safety of workers at its depots and other outdoor locations.
Council’s transfer of asbestos to Tungamah and Strathmerton waste stations, which were not licensed to receive it, “constituted serious misconduct” and put council staff at risk, the report said.
The report said council left the township of Numurkah and its residents at “serious risk” in the event of another flood and failed to act in accordance with legally binding financial management principles in relation to Yarrawonga Library and the Yarrawonga Multisport Stadium, putting both at risk.
Council had also “failed” to provide community representation from across the shire, with council’s performance in its local government community satisfaction survey significantly down on previous years, according to the report.
Council’s undivided municipality model was ”no longer working in the best interests of the whole shire”, the report stated.
Ms Keenan was also singled out in the report’s recommendations for “failing in her duties”.
It said Ms Keenan failed to conduct herself in a professional and ethical manner, “act appropriately in response to serious misconduct involving a major breach of council’s procurement policy”, comply with legislation requiring reporting to the Independent Broad-based Anti-corruption Commission, or to exercise “responsible oversight” of human resource management practices.
The report also dismissed complaints Ms Keenan made about monitor Marg Allan, who was put in place by the Victorian Government in April 2022 to oversee governance practices.
Speaking in parliament this week, Ms Horne said the government was justified in dismissing the council.
“The serious nature of the commission’s findings justifies the dismissal of the elected councillors,” she said.
“Removal of an elected council is always a matter of last resort and undertaken only in the most serious of circumstances.
“While it is regrettable that this is necessary, the government has a responsibility to protect communities from governance failings by their local representatives.
“In addition, the commission recommends an extended period of administration to October 2028 to ensure there is sufficient time to address the issues raised in its report and provide for the restoration of good governance at the council in accordance with the Local Government Act 2020.”
The commission, as well as handing down 10 findings, referred evidence to the state coroner about council’s former operations manager Rick Devlin’s murder by former employee Andrew Patterson.
The report said there was “good reason to think” Mr Devlin’s death could have been avoided if human resources management at council had been better.
The commissioners of the report also referred council to IBAC for alleged corrupt conduct by council’s co-ordinator of facilities maintenance, as well as for the transfer of asbestos-contaminated soil to transfer stations not licensed to receive it.
When contacted earlier this week, Ms Keenan said the focus of the organisation was now on the health of those impacted by the report.
“We understand that the findings of the report may be confronting for our staff and their families, and concerning for our community,” Ms Keenan said.
“Our priority continues to be the wellbeing of staff, and we have implemented measures to ensure they have support.”
A spokesperson for council said it would review the findings and seek relevant advice before making any further comment.
