Compensation being considered following fraud case against Logan councillors
Eight sacked Logan City councillors are considering joining forces to launch legal action for compensation as they prepare for a committal hearing into fraud charges against them.
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Eight sacked Logan City councillors are considering launching legal action for compensation as they prepare for a committal hearing into fraud charges against them.
The fraud charges were expected to be dropped after the Director of Public Prosecutions briefed lawyers on Friday.
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The eight councillors, including former mayor Luke Smith, were charged with fraud in April 2019 on the basis that they allegedly caused detriment to the council’s former CEO Sharon Kelsey by terminating her employment.
Last week, the Queensland Industrial Relations Commission made a ruling in Ms Kelsey’s dismissal case.
That ruling, currently under a suppression order, is expected to be made public on Wednesday.
The two cases have brought the actions of the Crime and Corruption Commission and the Local Government Minister under scrutiny.
The former councillors likely to seek compensation are Cherie Dalley, Russell Lutton, Steve Swenson, Laurie Smith, Phil Pidgeon, Trevina Schwarz, Jennie Breene and former mayor Luke Smith.
The eight are yet to speak publicly but legal sources said they were expected to join forces to seek compensation.
Mr Smith is still facing perjury charges.
It is expected the Director of Public Prosecutions will withdraw all charges and file a nolle prosequi notice in Brisbane Magistrates Court on Wednesday.
Legal sources said it was understood the parties would raise the conduct of the CCC and the role of the state government in any future compensation matters.
Local Government Association of Queensland’s insurance scheme, Local Government Mutual, funded the defence for the charged councillors.
The LGAQ insurance company could also seek to recover its costs from the Supreme Court action.
It is believed Ms Kelsey’s court costs have amounted to more than $2 million.
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