‘Fallen short’: Cairns councillor calls out process to extend CEO’s contract as senior staff walk out

Cairns Regional Council has extended its interim CEO’s contract behind closed doors amid growing acrimony among staff over the controversially appointed top boss’s position.

Cairns Regional Council has extended its interim CEO’s contract behind closed doors amid growing acrimony among staff over the controversially appointed top boss’s position.

Councillors voted to add a further three months to John Andrejic’s tenure at an ordinary meeting on Wednesday after which a permanent chief executive will be appointed.

Cairns Regional Council mayor Amy Eden interim chief executive John Andrejic and people and organisational performance director Christine Posgate at a Cairns Regional Council ordinary meeting. Picture: Brendan Radke

Mr Andrejic, who served as mayor Amy Eden’s campaign advisor during this year’s local government elections, was named to the role in May after being recommended by a recruitment panel chaired by Ms Eden.

At the meeting, Ms Eden acknowledged that councillors had already determined that she had a conflict of interest, but maintained that she disagreed with their decision.

“I still believe I do not have a DCOI (declarable conflict of interest),” Ms Eden said.

Division 1 councillor Brett Moller has challenged mayor Amy Eden over the process to appoint her campaign advisor, John Andrejic, as interim CEO at Cairns Regional Council. Picture: Isaac McCarthy

Division 1 Councillor Brett Moller offered a rebuttal, warning councillors that engaging in a process where Mr Andrejic’s contract was extended could have unforeseen consequences.

“I am of the view that a conflict of interest exists between the mayor and the CEO,” Mr Moller said.

Mr Moller said for him, it was a matter of process.

“The issue for me is that it is unknown whether a conflict identified in the appointment of the interim CEO continues in any other matter arising between the mayor and the CEO going forward,” he said.

“I’ve raised my concerns and expressed them openly in chambers and am of the opinion that, unless otherwise advised, I have fulfilled my duty as a councillor.

“The process for me has fallen short in the standards of good governance.”

The motion to extend Mr Andrejic’s contract was carried with only Cr Moller voting against the decision.

The Cairns Post exclusively reported that a whistleblower had reported the matter to the Office of the Independent Assessor in June.

The matter was later referred to the Crime and Corruption Commission.

“For the sake of we councillors, council staff and the community, it is my hope that we can get clarification in respect to this issue,” Mr Moller said.

Since the mayor’s win the council has endured an exodus of senior staff, with more executives tipped to go soon.

There are fears decades of corporate knowledge is being lost at Cairns Regional Council offices as a result of a major staff exodus. Picture: Brendan Radke

STAFF EXODUS

The Cairns Post is aware of multiple staff members who have either quit, or are considering their positions, claiming that it is in part as a result of poor relationships with Ms Eden and Mr Andrejic.

At least six high level employees, including former CEO Mica Martin, have resigned since March 16 with others expected to call it quits soon.

Multiple former employees were still listed in their roles on the council’s website despite having pulled the pin months ago.

One former executive, who quit in April to take up work with a Cairns-based business, was on the local government’s corporate structure page as late as Wednesday evening.

“This was an oversight on our part and we will update,” a council spokesman said.

Cairns mayor Amy Eden is using her LinkedIn account to advertise jobs, including two new roles recently created to help craft policies and communications content.

Earlier this month, the council were forced to scramble to address critical worker shortages in its Strategic Asset Management and Planning branch with councillors voting to spend more than $1.3m to pay for external engineering consultants this month.

NEW ROLES CREATED

Despite its struggles to keep workers and the mayor’s election pledge to cut costs, two high level roles, estimated to cost ratepayers around $1.8m over the next four years, have been created to help Ms Eden craft strategic policies and improve communication.

Applications for the councillor advisor roles – which pay more than $150,000 per year – closed earlier this week.

An executive communications role for Cairns Regional Council has also been advertised on Cairns mayor Eden's LinkedIn account.

“Councillor advisors provide additional support and advice to help them make more informed decisions and interact effectively with the council and the community,” a council spokesman said.

“Advisors are approved under the Local Government Act for 15 of the 77 councils. They also play an important role in other levels of government (state and federal) in providing accurate and timely advice that greatly assists with efficient delivery of services.

“Advisors can also help council strengthen its relationships and advocacy positions with key stakeholders, including state and federal governments.”

While praising the council’s new ‘Transparency Portal’, Ms Eden said collegiality among colleagues internally was strong.

“We’re getting on with getting on, which is business as usual,” she said.

“This (the Transparency Portal) is on top of that and I can put that down to what’s not reflected in this report and that’s the way that we’re working together so effectively as councillors and with our executive team and officer team.”

The CCC did not respond to a request for comment.

Originally published as ‘Fallen short’: Cairns councillor calls out process to extend CEO’s contract as senior staff walk out