NSW Office of Local Government to investigate Liverpool Council
Recruitment and claims mismanagement of a $600m development project by a Sydney council will be scrutinised in a NSW Government investigation following concerns of a “fractured relationship” between councillors and staff.
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The recruitment process and alleged mismanagement of a $600m development project by Liverpool council will be scrutinised in a NSW Government investigation following concerns of a “fractured relationship” between councillors and staff.
The Office of Local Government released the details of their Liverpool Council investigation after Minister Ron Hoenig called into question whether council’s operations had broken down following last month’s council meeting where CEO John Ajaka was suspended.
The confidential meeting session was reportedly held to discuss Mr Ajaka’s employment status after he allegedly told Liverpool mayor Ned Mannoun to “shut the f – k up” during a budget meeting about staffing.
When approached for comment about the incident, a Liverpool council spokesman said: “council does not comment on the contents of private meetings”.
Leppington MP Nathan Hagarty previously spoke of his “grave concerns” with the management of Liverpool City Council under MR Ajaka – a former Liberal upper house member – at state parliament on March 21.
The former Labor councillor said the “pattern of hiring is cause for concern” as no fewer than seven associates of the Liberal Party and Mr Ajaka have been given “safe harbour” within Liverpool council.
Deputy Secretary of the Office of Local Government Brett Whitworth, authorised investigators to report on the recruitment, selection process and appointment of persons into senior positions following council’s 2022 to 2023 restructure.
Ajaka’s former parliamentary colleague Shayne Mallard landed the Director of City Futures gig in August last year and former Liberal Liverpool councillor Tony Hadchiti was employed as the Austral Delivery Coordinator.
Another former staffer of Mr Ajaka, Haris Strangas, was hired for a senior government advisory role. It’s not suggested those appointed were unqualified for the positions.
The department will look into whether the recruitment and selection process for the relevant positions was merit based or if “identifiable factors”, including “any conflicts of interest” influenced the decision.
The investigation will also review whether council maintained records of recruitment for the relevant positions and whether council’s finances had been “adversely affected as a result of staffing decisions”.
Mr Ron Hoenig said he requested the investigation to provide the community “reassurance that their council is operating properly.”
“I’ve been concerned about the operations of Liverpool Council for some time and it’s clear there’s a fractured relationship between councillors and staff,” Minister Hoenig said.
Investigators will also review on the status and implementation of recommendations made to a public interest disclosure investigation report from September 2022 into allegations of mismanagement by council relating to the Liverpool Civic Place Project.
Built Development Group’s masterplan for the $600m precinct on Scott St was approved in 2020 by Liverpool council in a bid to transform the area into Sydney’s third CBD.
Stage one opened in 2023 featuring a 5000sq m public library, commercial offices alongside council chambers and administration facilities in early 2024.
The $350m second stage has been forecasted to include a 22-storey office building and a nine-storey hotel.
A separate investigation will also be looking into offensive, racist and religious chants made by attendees during a United Services Union rally before the April council meeting over the rumoured sacking of 150 council jobs.
A Liverpool council spokesman said council had received the terms of reference for the inquiry by the Office of Local Government.
“Liverpool City Council will fully cooperate with any requirements of this inquiry,” the spokesman said.
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