He was the business heavyweight with international renown who promised a new era of leadership at the helm of the state’s poorest councils. But Playford Council’s highly-paid boss is now suspended amid allegations of bullying and harassment.
MALCOLM Brian Hemmerling was the public servant who became one of Australia’s leading sports administrators and identities.
Now 72, “Mal” has rubbed shoulders with the rich-and-famous, sporting greats and world leaders during a glittering 40-plus year public career heading some of the country’s most high profile bodies.
A man used to inking lucrative deals, he has been at the helm of the Adelaide Grand Prix, Sydney Olympics, City Council and the Adelaide 36ers basketball team after a brief foray into the private sector at Australian tyre retail giant Bob Jane Corporation.
But at an age when most people retire, three years ago he found a new challenge when he signed another important, and most likely his last, deal.
This time he took stewardship of a council serving some of South Australia’s poorest, and most disadvantaged, residents grappling with high unemployment and an uncertain future with the closure of the Holden factory.
But today Playford Council is at war with its now suspended chief executive officer — the state’s highest paid local government boss — amid legal threats and a “Game of Thrones meets Seinfield” saga.
It wasn’t always this way.
On a rainy September day in 2015, the ink barely dry on his lucrative $366,287-a-year contract, Dr Hemmerling sat alongside a grinning mayor Glenn Docherty, the pair dressed in navy suits and blue ties.
The young mayor, a nurse who was earning $68,000 as an elected leader, had every reason to smile as he spoke of new horizons with his prized recruit.
“Mal set himself apart with his unrivalled experience in the government and private sectors, international networks, enthusiasm for the organisation and community, and commanding yet visionary style of leadership,” he said.
“We are extremely fortunate that Mal has decided to return to a CEO role. His motivation? The desire to see the Playford community realise its full potential and to ensure the organisation capitalises on all the opportunities it has to make this happen.”
Dr Hemmerling wanted to “unite on a renewed vision and focus on the community”.
“You should expect a strong and united leadership that will move quickly and get on with making things happen,” read his then statement.
And over the next few years he made good on his word.
On his watch at least $428 million in development and investment was ploughed into the northern suburbs, creating more than 3800 jobs.
It was welcome news for residents in economically challenged areas such as Davoren Park, Elizabeth and Smithfield, where unemployment is almost three times higher than the state’s average and the median annual salary is just $52,780.
But leadership smiles have since disappeared, and relationships seemingly damaged beyond repair, as the local authority faces its biggest crisis in its 21-year history.
Dr Hemmerling, a father of four, was stood down on full pay on November 6 accused of bullying, harassment and mismanagement.
The council’s decision to remove him days from local government elections was the spectacular culmination of months of multiple reviews into the culture at senior ranks of an organisation responsible for more than 88,000 people.
In May, a consultant’s review — understood to have been ordered by Dr Hemmerling to help address tensions within his team — found evidence of a culture of bullying among his executives.
The specific details from Thebarton-based Rally Consulting remain secret but two months later Dr Hemmerling’s leadership would face new scrutiny, when a junior female employee aged in her 20s accused him of harassment.
It is understood the alleged incident was not of a sexual nature and has been downplayed as a misunderstanding over, what has been described as, a “water cooler” incident.
But it’s a perceived complaint mishandling by his subordinates, and concerns about their motives during investigations into their boss’ behaviour, which has the embattled leader on war footing.
Mr Docherty, in a letter to Dr Hemmerling and obtained by The Advertiser, said the employee had sought a formal investigation but the complaint “ultimately culminated in an informal process” during which an agreement reached.
Deputy CEO Sam Green and senior manager of organisational development, Paula Paterson, then managed the female’s complaint.
Several well-placed sources claimed the crisis came amid an internal “coup”.
Father of two Mr Green, who himself earns a hefty $273,270 with a car, has not returned calls.
The media friendly mayor also would not return calls.
A City of Playford spokesman said on the day of publication:
The Council is aware of the media story regarding a confidential process established by the elected body but will not comment at this point.
The Council’s primary concern is for the wellbeing and privacy of all parties involved — including Dr Hemmerling — during an ongoing investigation regarding sensitive and serious workplace allegations.
The wellbeing and safety of all our staff is of paramount importance to Council and we will continue to follow fair and appropriate processes for the handling of these serious and sensitive allegations.
Councillors voted last Monday, after two-and-a-half hours of secret debate, to suspend Dr Hemmerling, pending an independent inquiry over, what the mayor claimed, were separate, more recent concerns about his “serious and wilful misconduct”.
The live inquiry is being overseen by Melbourne-based Susan Zeitz, of Peacemaker ADR, according to Mr Docherty’s leaked letter.
“Once the details of the specific concerns are known and substance assessed, you will be afforded procedural fairness and provided with an opportunity to respond to those concerns,” he wrote in the November 5 letter, addressed “Dear Mal” and meant to be hand-delivered but instead later emailed.
“For current purposes, you should be aware that the concerns raised are in the nature of bullying and harassment.
“If any of the concerns have substance you will be provided with a reasonable opportunity to consider the allegations and respond to them.”
He said Dr Hemmerling, who joined as a general manager in 2012, was under no obligation to co-operate.
Former councillor Denis Davey said his colleagues had a “robust” debate over whether to suspend Dr Hemmerling, who commuted 44km from his gated Stirling house in a ratepayer-funded $120,000 2016 Toyota LandCruiser Wagon Sahara.
He would only say he voted against secrecy because he wanted “transparency”.
Mr Docherty, 35, who has remained steadfastly silent, excused himself from the meeting — and another two days later — declaring a “perceived conflict of interest” due to him being “interviewed as a witness”, according to minutes of the meetings.
Sources said the mayor, a father of two re-elected for a third term last Saturday, faced serious questions.
“I think the mayor needs to start leading this council,” one said.
It is believed senior staff raised concerns about Dr Hemmerling’s behaviour directly with the mayor — an almost 16-year council veteran — two months ago but sought external help after he refused to act on concerns.
A council spokesman would not comment.
Last Friday, lawyer Greg Griffin sent a five-page letter to the mayor flagging Supreme Court defamation action and the immediate lifting of his client’s suspension.
“(Dr) Hemmerling has not been afforded an opportunity to respond in any way to what we understand are serious accusations of misconduct and mismanagement,” he wrote.
“Council has acted in an extraordinary and unlawful manner in the way in which it has conducted this process.”
He said his client was “severely prejudiced” by council “failure” to provide natural justice “in any reasonable way by advising him as to the precise nature of the allegations”.
Dr Hemmerling, who denies any wrongdoing, will seek reputational damages of almost $395,000 and a possible “economic loss” lawsuit.
Under the terms of his suspension, he is banned from council premises, work email and speaking publicly but must remain on call to perform duties when required.
He must not undertake his normal job unless directed by Mr Green, who was also hired by former chief executive Tim Jackson in 2012.
Mr Green, 42, joined as city services general manager from Prospect Council — where he lives — while Dr Hemmerling oversaw assets.
Dr Hemmerling became acting chief executive after Mr Jackson’s July 2013 departure and Mr Green made deputy.
Sources said Mr Green handled daily operations and staff while Dr Hemmerling oversaw investment strategy.
Amid claims their relationship has since deteriorated, Mr Green emailed staff last Friday advising of Dr Hemmerling’s leave.
The leaked memo stated, in part, the council “does not condone or excuse behaviours” that “detract from the safe working environment”.
The memo, and its distribution, are central in the legal dispute.
Unley-based Bradtke Consulting was hired by another senior manager to review the female employee’s complaint and its handling, Mr Griffin claimed.
Interviewees included Dr Hemmerling, Mr Green, Ms Paterson, the worker, her manager and EMA Legal partner Kaye Smith.
Mr Griffin asserted the review recommendations — the specifics of which remain secret — were further interrogated by law firm Fisher Jeffries, who had scope to investigate management conduct.
In their September 27 report, partners Susan Babidge and Nicholas Linke found a “case to answer” against Mr Green and the HR boss over “mishandling of the complaint” and urged further investigations.
Ms Paterson is on sick leave.
Mr Green, however, was promoted to acting CEO from “sick leave”, Mr Griffin alleged.
“That position is of course diametrically opposed to how you have treated (Dr) Hemmerling,” he wrote.
In a further twist, KelledyJones partner Natasha Jones, addressed a secret meeting on November 5, during which “detailed advice” was given “as to the need for her firm to conduct a further investigation into supposed bullying culture that exists”, he wrote.
Mr Griffin claimed Ms Jones had warned the mayor of “serious consequences” if a special meeting was held.
Sources said Fisher Jeffries “raised concerns” that councillors did not “have the full picture” but in a “surprise” decision, the elected body rejected their bid to address the second meeting despite not receiving their report.
More than half of councillors will not return to the Chamber.
Other sources assert Mr Green and the acting HR boss sought legal advice “every step of the way”.
“They weren’t doing anything without legal advice … it was a delicate situation,” they said.
As lawyers circle, the controversy has blindsided the State Government and disappointed local community leaders.
Local Government Minister Stephan Knoll became aware when he read The Advertiser last weekend.
Refusing to intervene, he would not comment. Labor’s “disappointed” local government spokesman Tony Piccolo — whose electorate covers Playford — wants a quick solution.
Ratepayers face significant bills.
No fewer than four internal investigations have cost north of $200,000.
Legal costs will be even more.
Friends say Dr Hemmerling is open to returning to work to help close projects before retiring “into the sunset”.
The grandfather of 10 whose family, including wife Ruth, are devastated, declined to comment due to strict confidentiality. Mr Griffin, the former Adelaide United chairman — whose training ground was moved to the area — said his client was distressed.
“Having worked tirelessly to take Playford to the next level … he is deeply disappointed by what has happened,” he said. “And he feels it is a slight on 40 years of public service. This is Game of Thrones meets Seinfeld.”
Mr Griffin has instructed two of the state’s top silks, Dick Whitington QC and Michael Roder SC.
In an ominous warning on any legal action, Mr Griffin said “We are not playing to come second.”
(Footage courtesy of Nine News Adelaide)
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