Stinging cost of slug gate saga for Dandenong Council revealed

As a Supreme Court challenge looms over the slug gate scandal, Dandenong Council’s legal bill for the saga is set to soar.

Dandenong Council has spent more than $650,000 in legal fees fighting the infamous slug gate saga.

The scandal began in January 2019 when a Greater Dandenong Council health inspector was accused of planting a slug inside the I Cook Foods facility, which the council denies.

Between February 1 and September 2021 the council had spent $654,000 in legal fees over the long-running saga.

But with a looming Supreme Court challenge being pursued by owner Ian Cook, the legal bill is expected to run into the millions.

Mr Cook — who unsuccessfully ran as an independent against Daniel Andrews in his seat of Mulgrave at last month’s election — is suing the Department of Health and the City of Greater Dandenong for $50m in lost earnings, arguing the closure of his business was unlawful.

He says Professor Brett Sutton wrongly ordered the company to be shut after the death of a woman at Knox Private Hospital, where I Cook Foods was a caterer.

The scandal began in January 2019 when a Greater Dandenong Council health inspector was accused of planting a slug inside the I Cook Foods facility. Picture: David Caird

His legal team claims the closure was linked to I Cook Foods’ commercial rival, Community Chef, which was partly owned by the local council and used state government funds.

The council’s legal fees, paid to three separate firms, were revealed after a lengthy Freedom of Information fight launched by opposition health spokeswoman Georgie Crozier.

“It’s an extraordinary amount of ratepayers’ money being spent by the Dandenong Council on the I Cook matter, which has been going on for years,” Ms Crozier said.

The council had fought to keep its legal costs secret and on Friday defended the use of ratepayer funds.

It said it had been forced to accrue the massive bill to defend “baseless claims” made by I Cook Foods.

Ian Cook is suing the Department of Health and the City of Greater Dandenong for $50m in lost earnings. Picture: David Caird

“As a result of these accusations and ensuing investigations, Council has needed to defend its actions multiple times to date,” a spokesman said.

“At all times council officers were simply doing their job to the best of their abilities.

“Greater Dandenong City Council now welcomes the opportunity to defend its actions in the Supreme Court, where it believes there will be a fair, impartial, and “unfiltered” hearing of all

the facts.”

The council said the claims had been the subject of two Victoria Police investigations, an Ombudsman’s review and two parliamentary inquiries.

“Victoria Police were provided with all requested photographs, video footage and other evidence,” the spokesman said.

But Mr Cook hit back, questioning the veracity of the police investigation.

“The police have admitted they didn’t question John Bennie the former council chief executive, or Brett Sutton,” he said.

Professor Brett Sutton wrongly ordered the company to be shut after the death of a woman at Knox Private Hospital, where I Cook Foods was a caterer. Picture: Ian Currie

“Those two men were central to the illegal closure. So the police have failed to investigate properly.”

Mr Cook also questioned why the council started paying legal fees as early as March 2019.

“We hadn’t even sued them at the stage. What were they scared of?” he said.

“The ratepayers of Dandenong are among the most financially stressed people in Victoria. How can council justify this shameful waste?

“Wouldn’t it have been cheaper for council to just admit what it had done and compensate the 41 workers whose lives have been destroyed?”

“Not only has council spent obscene amounts covering up its alleged crimes, it then spent more money fighting to keep its legal bills a secret.”