Central Coast Councillors suspended over financial crisis
A decision has been made on the suspension of the Central Coast Mayor and councillors. Mayor Lisa Matthews said they have been made to feel like criminals.
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Suspended Central Coast Mayor Lisa Matthews received the call that she was suspended at 2.26pm. Within five minutes, her emails had been cut off.
Ms Matthews said she was disappointed and angry with Local Government Minister Shelley Hancock’s decision to suspend council.
“I’m really disappointed; she really mustn’t have given much consideration to our submission,” she told the Express Advocate.
She said council’s crippling financial status “blindsided” councillors.
“Since we got the news we have worked non stop to find the answer,” she said.
“Just to say ‘you are gone’ really makes me angry. They have taken emails straight away and are asking for laptops and swipe cards. It looks like we are criminals. Councillors didn’t cause this. I hope over the next 12 weeks someone gets to the bottom of it so the truth can come out.”
Councillors have been told to return laptops and phones immediately.
Ms Hancock has announced the suspension of Cr Matthews and councillors for three months, however no staff have been suspended. The move comes after Ms Hancock issued a suspension order last week over the council’s financial crisis. The council is facing liquidity issues and is $89m in deficit.
Councillors were given seven days to reply to the order, submitting a response on Wednesday afternoon. Ms Hancock has taken less than 48 hours to reach her decision.
Dick Persson has been announced as the council’s administrator for the next three months and will hold a media conference on Monday.
Mr Persson will take the helm at Central Coast Council and make decisions on whether councillors can be reinstated after a period or sacked indefinitely.
Ms Hancock said an interim administrator will restore the proper and effective functioning of the council.
“There is a clear need for greater oversight and control over the council’s budget and expenditure to restore its financial sustainability and importantly reinstill the community’s trust in the effective functioning of their council,” Mrs Hancock said.
Mr Persson is an experienced local government administrator with a proven track record of fixing council dysfunction. He was appointed administrator following the dismissal of Warringah Council in 2003 and Port Macquarie-Hastings Council in 2008 as well as Northern Beaches Council when it was created in 2016.
Former local government general manager Rik Hart will oversee the council’s operational recovery.
“Dick Persson and Rik Hart bring with them the knowledge, skills and experience needed to restore the financial sustainability of (the) council,” Ms Hancock said.
The administrator will perform the functions of the mayor and councillors for three months.
“Dick Persson and Rik Hart are well placed to restore the proper and effective functioning of the council and ensure that the best interests of ratepayers are being served now and in the future,” Ms Hancock said.
Central Coast Parliamentary Secretary Adam Crouch said the coast was “breathing a sigh of relief today”.
“The NSW Government is still unaware of Central Coast Council’s true financial position,” he said.
“This will be the first order of business for Mr Persson and Mr Hart. Given the magnitude of the current financial situation, the path to recovery will be long and difficult, and I thank the Minister for putting our community’s best interests first by intervening.”
Councillors react
Bruce McLachlan welcomed the move, saying “no government can overlook the magnitude of the losses”.
“Councillors needed to step aside and put the community’s interests above their own political interests,” he said.
He said he wouldn’t be surprised if councillors don’t come back before the next election.
Jeff Sundstrom said he was “very disappointed with this premature decision and I look forward to the full reinstatement of the elected body ASAP”.
“Thank you to all those that have contacted me with messages of support.”