Inner West Council: Calls for probe into Michael Deegan exit

The saga surrounding the hiring and eventual resignation of a top council CEO continues to rumble on with calls for an investigation from the local government watchdog.

Michael Deegan, pictured, used to be the head of Infrastructure Australia.

Three inner west councillors have called on the Office of Local Government to investigate after its under fire CEO was given a pay-out when his contract was terminated earlier this year.

Liberal Julie Passas, independent John Stamolis and Greens Marghanita Da Cruz have all asked the body to probe the terms of Michael Deegan’s separation after a tumultuous 18 months at the helm.

Mr Deegan had told Inner West Council’s 1600 staff in a group email he was seeking the help of the United Services Union to negotiate the terms of resignation.

It marked the beginning of the end of a controversial term, after making headlines four months into the job last June.

“Mr Deegan’s contract was concluded in accordance with the Office of Local Government guidelines. The Office of Local Government was fully informed about the matter,” an Inner West Council spokeswoman said when asked a series of questions.

Mr Deegan officially left on October 20.

Revelations from the South Australian Ombudsman that Mr Deegan committed maladministration and misconduct began months of infighting between councillors.

The claims stem from his time working for the South Australian government.

The Ombudsman had found Mr Deegan interfered in an FOI request into his own finances and had spent excessive amounts of taxpayer money on lavish lunches and alcohol.

The three councillors have written to Local Government Minister Shelly Hancock.

Independent John Stamolis pictured here. Picture: Adam Yip

“We are aware that Mr Deegan sought a payout of 52 weeks. The standard contract of employment sets out different payouts depending on the circumstances of the separation, with the maximum payment being 38 weeks,” the letter states.

“The terms of the separation agreement between Inner West Council and Mr Deegan remains confidential. The inner west community have not been advised of it and the three undersigned councillors have not been briefed on it.”

Greens councillor Da Cruz was one of three councillors barred from attending a meeting to decide on the pay-out last month.

An independent investigation should determine whether the payout has been made in an accountable and transparent way. There are reputational issues for Council, given that it has been publicly reported that separation would lead to a ‘fat handshake’ for a ‘Labor immortal’.”

The hiring process that saw Mr Deegan land the job was referred to the Independent Commission Against Corruption after his Labor Party links became known.

He is understood to have had a long relationship with federal opposition leader and inner west MP Anthony Albanese.

Mr Albanese’s former staffer Darcy Byrne is the mayor of the inner west and had voted on whether to initially hire Mr Deegan.

Mr Deegan could not be reached for comment and has never previously spoken publicly about the circumstances surrounding his hiring.

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