Central Coast Council: Interim administrator Dick Persson AM and Rik Hart take charge
Central Coast Council’s interim administrator has revealed how the community will be involved in getting to the bottom of the current financial crisis, as a decision has already been made on the immediate future of the CEO.
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Central Coast Council’s interim administrator Dick Persson AM intends to get to the bottom of council’s financial crisis in 30 days.
He is also planning to bring the community along for the journey and not keep his findings secret.
“We are going to share (the figures) quickly,” he said at a press conference on Monday. “This is not going to be a secret thing.
“Between us we have come out of retirement and we are here for a duration to help work through these issues.”
Mr Persson and Rik Hart, both with extensive backgrounds in local government, started on Monday following the suspension of the Central Coast Mayor Lisa Matthews and councillors on Friday.
On Tuesday, Mr Hart was appointed acting chief executive officer at an extraordinary council meeting. He will temporarily replace council’s CEO Gary Murphy who has been asked to take annual leave during the investigation.
“It does not reflect that he has done anything wrong,” Mr Persson said at the meeting. “It’s inappropriate that he is here while myself and Mr Hart investigate what’s gone wrong.”
The councillors were suspended for three months due to the current financial crisis, where council is facing “liquidity” issues and an $89m debt.
“I am very confident I can work out what has happened in 30 days,” Mr Persson said.
“Whether we can work out how to get ourselves out of the situation is another issue.”
Mr Persson, who has extensive experience with dysfunctional councils, said the task was a challenge compared with other councils he has worked for.
“The figures that have been talked about are big figures,” he said. “I’m not aware of any council not being able to pay its wages.”
Mr Persson’s first order of business was a meeting with Mr Murphy returned from sick leave this week.
“I have just met with Mr Gary Murphy. Mr Murphy was on stress leave, he has a doctors certificate,” he said.
“I have requested him to take leave. It’s not appropriate for him to be here in charge of the staff while Mr Hart and I try to work out what has happened. There’s no judgment in that, it’s just a straight governance matter.
“He will be going on his own rec leave until we get further down the track and work out where we stand with all of this.”
Mr Persson and Mr Hart said they had also started arranging meetings with councillors and local MPs.
Mr Persson said he and Mr Hart had been gathering information over the weekend.
“We have some idea what has happened but we are not going to share them today,” he said.
“We need to confirm what we are thinking and my hope is to produce a report within 30 days which will go to the council. That report will explain what has happened and outline options for the way ahead.
“This organisation has found itself in a financial circumstance which many would be confused about how this has happened. At this stage so am I. But I am please to be here because I believe it is important to move quickly and restore confidence for both the ratepayers and the staff and in fact the government.”
Persson, who was the former administrator of Warringah Council, Port Macquarie Hastings Council, Northern Beaches Council, said Mr Hart had extensive experience in local government finance.
Mr Persson strongly stated that there was no evidence to indicate any corruption within the council.
“There may be negligence but not corruption,” he said.
“It would appear funds have been spend out of restricted moneys that weren’t allowed to be spend and that has contributed to the situation.”
Mr Persson said he had asked for the same pay he received five yeas ago for a similar role, $320,000 per annum.
The grandfather of seven said he would be working four days on the coast and one day from his Sydney office, while Mr Hart would be here five days a week. Both Mr Persson and Mr Hart will be provided accommodation.