Council boss warns of disciplinary action after audit shows dodgy contracts
Douglas Shire Council's boss threatens disciplinary action after auditors exposed dodgy contracts with missing paperwork and untested suppliers.
The boss of a Far North council has warned of disciplinary action after an audit uncovered dodgy contracts in the organisation.
The Queensland Audit Office found a “significant deficiency” in procurement processes at Douglas Shire Council during their annual audit of 2024/25 financial statements.
On Tuesday, the council noted a report that said council had not complied with its own policies or the local government regulation.
Chief executive Scott Osman, who took up the role in October 2024, told the council meeting that most contracts were funded by the Queensland Reconstruction Authority and followed initial engagements after Tropical Cyclone Jasper in 2023.
He said he’ll continue to review council’s processes.
“The findings here are not great on paper, but I see it as positive and clearly shows transparency that the council officers are trying to put forward,” he said.
“This clearly shows examples of why the new council decided to bring in a new CEO and a new executive to try to work through some of these issues and move our council into a better position.”
“We will continue that review into our activities going forward and any appropriate disciplinary action will be taken, if that is appropriate when we finalise the review.”
Auditors reviewed eight contracts and found the council could not explain how it chose suppliers, whether the work was value for money or provide documents required under law.
The audit report revealed missing contracts, cost blowouts, untested suppliers and millions of dollars spent without proper paperwork or oversight in the previous financial year.
In one example, a former employee’s company was handed a short-term contract until March 2025 but was the only one invited to bid, and the tender was left open for just four days.
There was no signed contract and conflict-of-interest forms were left blank.
Councillor Abigail Noli told the meeting the audit report showed council had already taken proactive steps to address the issues.
Council has made changes such as slashing sole-supplier arrangements, launching an independent review into high-value contracts, tightening policies, centralising procurement staff and publishing all contracts over $200,000 at council’s website.
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Originally published as Council boss warns of disciplinary action after audit shows dodgy contracts
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