Cleve Council chief executive committed maladministration over bowling club upgrade, Ombudsman finds
A council chief executive committed maladministration over payments towards a $266,000 sports club upgrade, the State Ombudsman has found.
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Cleve Council is standing by its chief executive after the State Ombudsman found he committed maladministration over payments towards a $266,000 sports club upgrade.
Ombudsman Wayne Lines investigated a complaint against Peter Arnold over the replacement of a green at Cleve and District Bowling Club.
Mr Lines found Mr Arnold authorised payments for the upgrade under an understanding that the club would reimburse the costs, despite no formal agreement being in place.
The council in June 2017 gave “in principle” support to loan the club $150,000 for the works, but by that stage the council had already paid $24,200 for the project’s deposit.
The upgrade was completed that year, but the Ombudsman’s report said it wasn’t until May 2018 that the club treasurer and Mr Arnold formally signed a loan deal.
“Effectively the (bowling club) had a new green paid for by (the council) and total risk of reimbursement falls to council, with no guarantors in place,” the complainant alleged.
Mr Lines found ratepayers’ money was used without formal council approval, “specific inclusion” in the council’s budget, a written agreement or any assurance the money would be repaid.
“The above factors, combined with the fact that the council’s record keeping did not accurately reflect the amounts paid … led to the bowling club repaying the council in excess of $120,000 less than the amount the council spent on the project, resulted in substantial mismanagement of public resources,” the report says.
Mr Lines found Mr Arnold committed misconduct and maladministration by using council funds to pay the bowling club’s costs and recommended the council consider disciplinary action. The club had repaid the council about $113,000 by May 2018.
Mr Arnold said the club was also making further repayments as scheduled.
He referred inquiries to Mayor Phil Cameron, who said ratepayers had incurred “no out of pocket expenses”.
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“(The) council has considered the appropriate action,” Mr Cameron said. He declined to elaborate because of confidentiality reasons.
“The CEO has the complete support of elected members and will continue to work as normal. It’s something that occurs in human nature. People make mistakes and it was done inadvertently.”