Auburn Council sacked by State Government following allegations of improper conduct
AUBURN councillors, including Salim Mehajer, have been stripped of their $500,000-a-year ratepayer-funded perks after the Baird government finally suspended the dysfunctional local authority.
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AUBURN councillors, including dumped deputy mayor Salim Mehajer, have been stripped of their $500,000-a-year ratepayer-funded perks after the Baird government finally suspended the dysfunctional local authority.
Mayor Le Lam lost her $90,000 official Lexus, while ordinary councillors were told to hand in computers, had funding for home internet access and mobile phone bills cut and were locked out of office space.
Annual fees of almost $200,000 a year were axed and all councillors’ names and contact details were scrubbed from the authority’s website.
The suspension of Auburn City Council took place ahead of a public inquiry — expected to last most of this year — probing planning decisions over at least the past four years.
The council is almost certain to be sacked at the end of the inquiry and is due to merge with Holroyd in early 2017. Former Mosman Council manager Viv May was appointed interim administrator with powers to make all decisions usually taken by Auburn councillors.
Suspended councillor Irene Simms said the inquiry should cut the “rot” from the council while Labor’s George Campbell described it as a necessary step brought about by the “greed of some”.
Auburn City Council has been mired in scandal after it emerged that some councillors, including Mr Mehajer and former mayor Ronney Oueik — both property developers — allegedly made millions from council decisions.
The decisions emerged after Mr Mehajer’s extravagant August 15 wedding — which included fighter jet flyovers — attracted intense scrutiny of his business dealings.
“Auburn Council has been in the spotlight for all the wrong reasons and anyone would be concerned about the allegations that have been made. The community has lost confidence in its elected representatives,” Local Government Minister Paul Toole said.
Mr Oueik and Ms Lam did not respond to requests for comment.
Opposition Leader Luke Foley — the MP for Auburn — welcomed the suspension, saying it was long overdue.
He reiterated calls for property developers to be banned from local councils for caps on donations to councillors seeking elections.
Mr Foley said concerns were raised about Auburn Council were raised back in 2010 by his predecessor as Auburn MP, Barbara Perry.
“The truth is it’s only been acted upon because of the controversy around one man’s (Mr Mehajer’s) wedding,” Mr Foley said.
“It should have been dealt with earlier. Having said that, I will welcome (the) decision. I think it’s overdue.”
Mr Toole issued a press statement about the suspension at 11am Wednesday, apparently before the council was told.
Mr Toole said the council has been suspended so that no further “binding decisions are made during the course of the inquiry”.
Former Mosman Council general manager Viv May has been appointed administrator of Auburn Council.
He has previously also worked as acting general manager of Strathfield Council.
Mr Toole said the suspension will have no impact on the planned merger of Auburn and neighbouring Holroyd Council.
Mr Mehajer said he “respected” the decision to suspend the council but argued that the council should have been allowed to continue working until the public inquiry was completed.
“The decision to indefinitely suspend remains respected. I am however disappointed that the suspension has taken place prior to the completion of the ongoing investigation,” Mr Mehajer said, referring to the public inquiry.
“I believe that this has raised more concerns from the public relating to the Minister’s ‘abuse of power’ (allegations) as we all can appreciate the understanding of ‘cause and effect’.
“Investigations should be made, concluded and then decisions finalised based on the findings.
“I believe that it is now a matter for the Australian legal system to play its role in reference to the above, to ensure justice is kept.”
Mr Mehajer also said it was “disturbing” that media outlets, including The Daily Telegraph, were told about the suspension before councillors themselves.
“I find it very disturbing and I am somewhat disgusted that the media was informed prior to us councillors knowing about this,” he added.
Auburn Council has said it expects it to be “business as usual” under administration and the authority does not expect any dismissals of staff.
Earlier, an Auburn councillor urged the public inquiry to cut the “rot” from the local authority and help restore its reputation.
Auburn councillors have — perfectly legally under local government rules that were changed by the Coalition government in 2012 — been able to rezone land where they own properties, thus significantly increasing their value.
Councillor Irene Simms told The Daily Telegraph: “It’s a very sad day for Auburn Council.
“Hopefully the inquiry will be swift but thorough, any rot will be cut and the rest of us reinstated, so that this council can go out with its reputation restored before we get swallowed up in the amalgamations.”
A council report tabled at an emergency meeting on January 27 said Mr Toole wanted the councillors stood down so that no planning decisions could be made during the investigation
It also said Mr Toole had concerns that councillors still having access to council staff and records may “frustrate” the public inquiry.
Auburn deputy mayor Salim Mehajer, who attracted attention to himself and the Auburn Council when his wedding shut down a street in Lidcombe in August, is currently involved in a Supreme Court matter where he is trying to remove a four-month suspension imposed on him by the NSW Civic and Administrative Tribunal.
Mr Mehajer was suspended for four months by NCAT for failing to declare a pecuniary interest.
Earlier, Ms Simms said she was “shattered” by the decision but hoped the inquiry would help restore people’s faith in the council.
Ms Simms said the community would likely support the action.
“Lots of people have wanted an investigation, and have wanted Salim Mehajer to go for a long time. But it’s not just about Salim, it’s about the council in general,” she said.
In a poll run by News Local’s Parramatta Advertiser, half of 424 respondents supported the council sacking, while 43 per cent said only Cr Mehajer should be shown the door.
Seven per cent said the council should remain in place.
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