Central Coast Council CEO Gary Murphy’s contract terminated by Administrator Dick Persson

Central Coast Council has announced that chief executive officer Gary Murphy has had his contract terminated, effective immediately.

Central Coast Council CEO Gary Murphy has had his contract terminated by interim Administrator Dick Persson AM. Picture: Sue Graham

Central Coast Council chief executive officer Gary Murphy has had his contract terminated by interim Administrator Dick Persson AM.

Mr Persson has revealed in media statement that he terminated the employment of Mr Murphy “in accordance with the provisions of Mr Murphy’s contract of employment, effective immediately.”

“Recruitment of a new chief executive officer will commence shortly,” the statement read.

At a press conference, he stated that he terminated Mr Murphy’s employment on Friday via a letter after Mr Murphy declined to go into the council offices.

Interim Administrator Dick Persson AM has terminated the employment of CEO Gary Murphy.

“I felt the situation has become clear enough that the financial management of the council is not deemed acceptable and as the chief executive officer Mr Murphy had a primary responsibility,” he said.

He said the ratepayers will cop the brunt of the 38 week severance pay to Mr Murphy which will be to the tune of $380,000. He said he understood ratepayers would be angry regarding the payout.

“The standard contact required to be used by local councils I believe needs some adjustment,” he said.

“Councils have no choice in that at the moment. It is very hard to avoid the payout.”

He said the former councillors made the decision they wanted a change of CEO about eight weeks ago, however couldn’t reach an agreement on the matter. He said if their decision wasn’t delayed, it could have saved $80,000.

Mr Murphy has been in the job since July 2018. Picture: Fiona Killman

However he said the most important thing now was to move on and look to appoint a new CEO in the new year.

Former Mayor Lisa Matthews, who is currently suspended along with the other councillors, said the announcement came as “no surprise”.

“I’m glad to see some action,” she said.

She said in the lead up to the financial crisis, councillors were asking senior staff questions regarding finances.

“Questions were being asked of staff for months and we were told everything was fine or that they would take the question on notice,” she said.

Cr Matthews said she did not blame the amalgamation for council’s crisis, despite some other amalgamated councils struggling financially.

“What’s unique with us was the use of restricted funds,” she said.

Central Coast Mayor Lisa Matthews. Picture: Sue Graham

Mr Murphy has been on leave since Mr Persson arrived at the council to tackle the current financial crisis, however also took sick leave after the crisis was announced.

Mr Persson is set to deliver his report into the extent and cause of the crisis at a meeting on Wednesday.

When the $89m debt and “liquidity issues” facing the council were initially announced on October 6, the council stated that the issues came to light as a result of reviews commissioned by Mr Murphy.

The former CEO of Lismore City Council was appointed to the role of Central Coast Council CEO by a unanimous vote of councillors on a five-year contract in May 2018.

Mr Murphy had been a chief executive of local government organisations since 2003, initially at Buller District Council in New Zealand and then Lismore.

Mr Murphy was the former CEO of Lismore City Council. Picture: Sue Graham

During his first interview with the Express, the father of two said “the size and scale (of council) is something that I was aware of but it’s only once you start exploring that you realise the breadth of the organisation”.

“The issues are still the same. It’s all about people and the issues that the community has. But it’s a massive undertaking,” he said.

“One of the things we do need to do is strive for is excellence. We are a significant organisation in our own right and I think the community expects that we exhibit leadership in a multitude of areas.”

In the interim, the acting CEO Mr Rik Hart and chief operating officer Mr Malcolm Ryan will continue to head council until a new CEO is recruited in the new year.