Inner West Council: No chance to recoup $24m in legal fight

After enlisting one of the country’s top legal minds, two Sydney councils are now said to face the prospect of having no chance of recouping millions they say they were cheated out of.

Inner West Council’s much-hyped legal challenge against the state government’s controversial allocation of community grants reportedly has no chance of recouping millions Mayor Darcy Byrne says it was cheated out of.

The potential blockbuster legal fight championed by the mayor is set to be spearheaded by one of the top silks in the country.

However, councillors have been told that if it proceeds it will not net the $24 million it alleges it is entitled to.

Councillors will be briefed again in a confidential meeting on Tuesday night but have reportedly been told on previous occasions their best hope would be for a court to find the grants were made illegally as opposed millions of dollars being granted to them.

Because the money technically has left the government’s coffers, it legally cannot be returned by the recipients of the grants.

Bret Walker SC has been engaged by the Inner West and Canterbury-Bankstown councils for their legal challenge. Picture: John Feder/The Australian.

But Cr Byrne said it was about “embarrassing the government into doing the right thing”.

“We’re not going to give up the fight for the $24 million the inner west was cheated out of,” he said.

“The community would be shocked and appalled to see council go soft when we’ve been cheated out of millions. It would be a betrayal to residents.”

The council has brought in Bret Walker SC, who is one the country’s top legal minds, to fight its case.

He successfully appealed George Pell’s child sexual abuse convictions and led the inquiry into the Ruby Princess debacle which sparked hundreds of coronavirus infections in NSW last year.

A parliamentary inquiry is currently looking into allegations that $252 million worth of Stronger Communities grants were improperly allocated to councils in coalition-held seats in the lead up to the 2019 state election.

The inquiry has been told key documents relating to the grants have been shredded and those allegations have been referred to ICAC.

Gladys Berejiklian has previously denied any wrongdoing in relation to the grants program.

Mayor Darcy Byrne said the allocations were “a rort” and referred to the grants as a coalition “slush fund”. Picture: John Appleyard

The stoush intensified when Mayor Byrne used his opening statement to the inquiry late last year to claim he was hit with misconduct charges days before he was to give evidence as a “political hit”.

Canterbury-Bankstown Council had also joined Inner West Council in engaging Mr Walker SC and both local governments are actively seeking others to join their fight.

It is understood councillors have discussed whether the challenge, successful or not, could be used to pressure the government into providing more funding.

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