Debt-ridden Kiama Council refers itself to ICAC following Minister’s performance orders

Kiama Council will refer itself to the state’s anti-corruption agency after it was issued performance orders by the Minister for Local Government over a $40 million blackhole.

Kiama Council has had a temporary financial advisor installed by the Minister for Local Government.

The financially-stricken Kiama Council has voted to refer itself to the Independent Commission Against Corruption, with one outspoken councillor declaring the south coast LGA has “nothing to hide”.

The move came during Tuesday’s monthly meeting, where the council acknowledged a Performance Improvement Order issued by the Minister for Local Government, Wendy Tuckerman, earlier this month.

The PIO was issued along with the appointment of a temporary financial advisor in former Queanbeyan-Palerang Regional Council CEO Peter Tegart - two moves previously opposed by Kiama Council.

In the letter, Ms Tuckerman said she made the call because there was “evidence suggesting Council may not be able to pay its debts as they fell due”.

Minister for Local Government Wendy Tuckerman issued the letter on November 5. Picture: Kym Smith

“I recognise that Council has undertaken work to address these issues,” she said.

“I not Council has entered into a contract for the sale of land in Akuna St, and that Council has resolved to sell part of the Blue Haven aged care facility.

“However, I am not satisfied that these actions will fully address the fundamental issues of concern.”

Kiama Council’s bleak fiscal outlook, which sees the municipality $40 million in debt, is primarily linked to a money-haemorrhaging aged care home costing the LGA about $14,000 a day to operate.

Councillor Mark Croxford, who moved for the amendment to see the PIO referred to ICAC, said the community had “significant concerns” about how the LGA ended up in this position.

Kiama councillor Mark Croxford. Picture: Kiama Council

Kiama Council Deputy Mayor Imogen Draisma. Picture: Dylan Arvela

“Council neither has the capacity, capability or the authority to go and do the sort of investigation it would like to see and to find out who is responsible for getting us into the situation we are in,” Mr Croxford said in the chamber on Tuesday night.

“If ICAC chooses not to accept the referral, then that’s the end of the matter, but if they do, there will be a thorough investigation, and the concerns held by ratepayers will be addressed.”

Deputy Mayor Imogen Draisma said the amendment wasn’t necessary given the PIO was already a “publicly-known document”, while councillor Kathy Rice believed it was ”superfluous”.

Mayor Neil Reilly supported the amendment and stated, “we have been told in the Minister’s letter there is evidence, but we haven’t been told what that evidence is”.

Despite some pushback, the amendment and the motion, which noted the budget would need to be reviewed to accommodate the appointment of the temporary advisor, were carried unanimously.

“I’ve said it before, and I will say it again, I am not a lawyer, but I have been admitted to many bars,” Mr Croxford said in closing.

“We should do everything we can to get to the bottom of this situation. We should provide them with as much information as we can whether we think they have it or not.

“Anything short of that would be an abrogation of our community and morally repugnant. There are those in the community who think there is something to hide - we’ve got nothing to hide.”