Liverpool City Council faces suspension, public inquiry ordered over ‘widespread dysfunction’

Claims development applications were ‘unnecessarily refused’ to meet yearly quotas have emerged as Liverpool City Council faces the threat of suspension. Here’s the latest as the mayor speaks out.

Liverpool City Council is facing suspension.

Development applications have allegedly been “unnecessarily refused” by Liverpool City Council in a bid to boost the number of determinations reported to the state government.

It comes as the council is under threat of suspension due to “widespread dysfunction and maladministration”.

The State Government has ordered a public inquiry into the council after an interim report provided to Local Government minister Ron Hoenig detailed “serious concerns” with the MP telling media witnesses had come forward with claims of “gender bias” related to management.

In the shocking interim report, the Office of Local Government (OLG) announced the evidence gathered by investigators over the past three months was enough to hold a public inquiry.

Allegations against the council, found deep in the 50-page report, came after multiple staff provided evidence that towards the end of the annual reporting period for DA determinations, “senior staff in the development assessment department” put pressure on assessment workers to determine applications in order to “boost the number of determinations reported to the state government”.

According to the report, “frequently” in those circumstances, the assessment process was allegedly “rushed” and applications which were likely to be approved, “subject to further information”, were “unnecessarily refused”.

NSW Minister for local government Ron Hoenig. Picture: NCA NewsWire / Nikki Short

As a result, the report states refused applicants would turn to the NSW Land and Environment Court with “the bulk of matters” being resolved out of session and the council allegedly racking up high legal costs by hiring barristers.

Staff provided email correspondence and other relevant documentation to support their assertions.

Liverpool council acting CEO Jason Breton has spoken out since the announcement, saying council would cooperate with the OLG and participate in the public inquiry.

“At this time council is reviewing the interim report, its content and the allegations it contains and will be making a fuller response to its contents in due course,” Mr Breton said.

He said council would continue to “work to serve the community of Liverpool”.

“I have reminded our workforce that one thing remains consistent, my support for you as a team and my recognition of the work you continually do for the communities we serve,” he said.

Mayor of Liverpool Ned Mannoun fired back in a press conference on Thursday afternoon, saying the intention to suspend was “purely political”.

Liverpool Mayor Ned Mannoun. Picture: Daily Telegraph / Monique Harmer

“This is a Labor minister, part of a Labor government, denying the people of Liverpool their democratic right just over 50 days from an election,” Mr Mannoun said.

“If the minister had concerns, he would have brought this up much sooner. The items contained within the report when you read all 50 pages has to do with staff in operational matters that councillors have no role in whatsoever.

Mr Mannoun also accused the union of constantly “bullying the Liverpool City Council”, stating that police involvement was required at a past council meeting “because they refused to leave”.

Mayor of Liverpool Ned Mannoun at a press conference in response to the council's threat of suspension and public inquiry. Picture: Tileah Dobson

He also complained about the significant impact he says the union has had on the council.

During the press conference on Thursday, Mr Hoenig said the people of Liverpool were “entitled to a council that is not dysfunctional”.

“[They should have] one that complies with the statutory processes, and one whose councillors are governing the area appropriately,” he said.

He said there had been a “toxic work culture” at the council, saying multiple witnesses had come forward, some making public interest disclosures indicating there had been gender bias “in relation to the management” and some weren’t given a “fair go … [with] how the place was managed”.

“There are other significant complaints that arose from … industrial disputes that occurred that resulted in council staff in Liverpool City Council … uniform was being abused in shopping centres or in childcare centres,” he said.

Mr Hoenig also detailed how senior staff were appointed “without a competitive process” and salaries were determined “arbitrarily” while a consultant was paid “$1.4m without complying with the procurement processes”.

He noted one issue was the CEO’s $380,000 salary which was determined “without any market testing”, saying it was an “unusual decision to make”.

“I’m really concerned about the fact that people of Liverpool City Council are entitled to a council that operates with integrity and puts their interests first,” he said.

“That clearly doesn’t seem to be the case.”

Former CEO John Ajaka’s position was terminated in May.

In May, CEO John Ajaka’s role was terminated during a confidential meeting. The termination was a result of a mayoral minute tabled by Mr Mannoun.

The vote was five to five, with Mr Mannoun casting the deciding sixth vote.

Mr Hoenig said a public inquiry was a necessary measure to get all the issues out in the open and start the journey of restoring confidence in the council.

“I want to ensure the Commissioner can oversee this inquiry without the politically charged environment of an election, which is why I believe it is in the public interest to postpone the September elections for Liverpool,” he said in a statement.

“Liverpool City Council has a vital role to play in the development of the Bradfield City Centre and the overall growth and economic success of Western Sydney.

“This action announced by the Government today is necessary to get to the bottom of some very serious and concerning matters.”

Mr Hoenig has written to Mr Mannoun advising of his intention to suspend the council and postpone the elections due in September. The Council has been given seven days to respond.

A statement from the Minister’s office indicated the interim report provided to Mr Hoenig will form part of an investigation announced in April 2024.

Liverpool Council offices Moore Street, Liverpool.

The scope of the investigation focused on recruitment matters including whether the council had complied with its statutory obligations, if conflicts of interest influenced staff appointments and any other matters that may have impacted the governance and effective administration of the council.

Investigators identified matters relating to recruitment and staffing practices, procurement irregularities, allegations of inappropriate record keeping and widespread evidence of a toxic work environment.

“The report also outlines evidence of direct interference from the mayor and councillors in the assessment of development applications and other compliance and regulatory activities,” the statement read.

“The widespread and serious nature of the report has left the NSW Government with little choice but to intervene … a public inquiry will now be launched into the functions and operations of the elected Council and the Council’s administration.”

Mr Ross Glover has been appointed as the Commissioner to undertake the inquiry.

Liverpool MP and councillor Charishma Kaliyanda said she welcomed the announcement of a public inquiry.

Liverpool MP and councillor Charishma Kaliyanda welcomes the announcement.

“This interim report confirms what Liverpool residents have known for some time, that dysfunction at Liverpool City Council is widespread across the organisation and impacting its capacity to perform its basic functions for residents and ratepayers,” she said.

She said it was essential these “serious concerns are investigated to their fullest extent in an open and transparent forum”.

“Liverpool deserves a council with integrity, that is squarely focused on the needs of our communities. I look forward to this process to help do that.”

Leppington MP Nathan Hagarty said he also welcomed the inquiry which was a “long time coming”.

Member for Leppington Nathan Hagarty. Picture: NewsWire / Flavio Brancaleone

He said the inquiry was a “necessary step to bring transparency and accountability to the council’s operations” and there are “serious issues here that cannot be ignored”.

“The detailed concerns about recruitment practices, procurement irregularities, and inappropriate record-keeping demonstrate a profound lack of integrity in council operations,” he said.

“This inquiry is essential to uncover the full extent of the issues and to restore confidence in Liverpool City Council’s ability to serve its community.”

This comes after Mr Hagarty previously raised concerns a “council within a council” had formed following a string of Liberal-affiliated hires into senior roles at Liverpool council.

United Services Union metropolitan manager Steve Donley said Mr Hoenig made the “only logical move he could”.

“For many years our members have been reporting to us problems at Liverpool Council, and today Minister Hoenig showed their voices have been heard,” Mr Donley said.

“The Mayor has lost the confidence of the people who roll out council services.

“We hope this inquiry will throw open the windows and let some fresh air and sunshine in so we can move forward with a council focused on the needs of local people.”