Playford Council spends $1.3 million on lawyers in past two financial years
Adelaide’s most debt-laden council has spent $1.3 million on lawyers over the past two years, including almost $300,000 over the sacking of its high profile chief executive.
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Debt-laden Playford Council has spent $1.3 million on lawyers over the past two financial years, according to its latest annual report.
The council — which owes $139.8 million — has confirmed $297,000 involved the termination of former chief executive Mal Hemmerling.
Financial statements show the council spent $390,000 in the 2017-18 financial year compared with $899,000 in the past financial year, during which Mr Hemmerling was sacked.
His dismissal last December followed investigations by several law firms and human resources consultants into a sexual harassment complaint made by a female staff member.
Internal emails obtained by The Advertiser detail various exchanges between council executives and lawyers from EMA Legal, Kelledy Jones, Norman Waterhouse and Fisher Jeffries over the complaint, which was resolved through mediation.
Among the emails is legal advice from EMA Legal stating that Playford Mayor Glenn Docherty had a legal obligation to inform elected members about the complaint soon after it was made late in July last year.
The legal advice said Mr Docherty had to tell Mr Hemmerling about the complaint and ask him to take leave while it was investigated.
EMA lawyer Kaye Smith wrote that Mr Docherty was “to advise the council as a matter of urgency and seek direction and resolution of the council”.
Ms Smith suggested this should happen at a special council meeting on July 31 or August 1 last year.
“If the CEO does not take up the suggestion of requesting leave, then the Mayor is to seek the guidance of the council on the matter,” she said.
Ms Smith said one option was for Mr Docherty and several elected members to form a committee to supervise the handling of the complaint.
Other emails show Ms Smith provided further advice to the council on what material should be provided to elected members at the proposed special council meeting.
One email on August 1 last year said she had “confirmed a small change to the resolution in draft with the mayor”.
“As we are about to press the button on the notification of the meeting tonight to elected members, can you confirm the complainant is still wanting to proceed with the investigation of her concerns,” she said.
The female staff member subsequently withdrew the complaint during a mediation session with Mr Hemmerling, during which he apologised.
This resulted in the special council meeting not going ahead as the council received legal advice saying it was no longer necessary as the matter had been resolved.
Mr Docherty then called a special meeting in October last year, just weeks before the local government elections, when the council received a report detailing other allegations against Mr Hemmerling.
A code of conduct complaint was subsequently lodged by councillors against Mr Docherty for not telling them about the original complaint but was dismissed by State Ombudsman Wayne Lines, who said there was nothing to investigate.
Other emails detail how lawyers from Fisher Jeffries were asked to provide legal advice on whether Mr Hemmerling’s deputy, Sam Green, had followed correct procedure by ordering a formal investigation into the complaint.
Lawyers who interviewed the female staff member who made the allegation wrote a report stating that she wanted the matter handled informally.
Consultants were then engaged to investigate how the complaint was handled and whether a culture of bullying existed within the council.
Elected members decided last November to suspend Mr Hemmerling before voting to terminate his contract last December.
He took legal action against the council which was settled out of court.
In a statement, the council said it had spent a total of $297,000 on lawyers and consultants on the workplace issue involving Mr Hemmerling.
“Council has always committed to managing costs associated with the matter within existing budgets, and we did that, noting our final budget position for 2018/19 was favourable by $5.1 million,” it said.
Mr Docherty previously has said he had acted appropriately throughout the council’s handling of the complaint against Mr Hemmerling.