Liverpool City Council under threat of suspension, election delayed over ‘widespread dysfunction’

Liverpool City Council faces a potential anti-corruption investigation after a scathing interim report from the Office of Local Government outlined serious allegations of “maladministration and corruption” along with interference by elected officials in planning matters.

As he announced a broad public inquiry to examine the OLG’s findings of widespread dysfunction, Local Government Minister Ron Hoenig gave the council seven days to prove why he should not proceed with suspension and deferring the local government election scheduled for September.

Liverpool Mayor Ned Mannoun speaks on Thursday after Minister Ron Hoenig announced a public inquiry into the council.Credit: Dion Georgopoulos

Hoenig announced the OLG probe in late April, after former NSW Liberal minister John Ajaka became the council’s 10th permanent or acting CEO to be sacked in eight years, a scenario likened to the Machiavellian and murderous plot of Game of Thrones.

Eight years after the Independent Commission Against Corruption opened an investigation into Liverpool Council after serious allegations of impropriety were levelled against Mayor Ned Mannoun under parliamentary privilege, the elected body is once again mired in controversy.

The interim report released on Thursday morning said there was sufficient evidence to hold a public inquiry, and the findings had been provided to the NSW Independent Commission Against Corruption.

Hoenig said the report laid bare the systemic failures of council, and he held serious concerns about allegations of corruption, appointments of highly paid staff without competitive process and interference by elected representatives in planning matters.

“There were a number of other matters it uncovered as part of the investigation which were not part of the terms of reference … but relates specifically to questions of maladministration and corruption, of which will be examined by the public inquiry,” he said.

“The people of Liverpool are also entitled to a council that is not dysfunctional, one that complies with the statutory processes, and one whose councillors are governing the area appropriately.”

Hoenig also noted in the finding that dysfunction may have contributed to the significant increase in development application processing times.

Betty Boustani is a senior adviser who works out of Mayor Ned Mannoun’s office.Credit: Mason Parkes website

The 50-page interim report dealt extensively with serious concerns about hiring processes, finding family and associates of senior staff were often appointed to highly remunerated roles without a competitive process.

This included Mannoun’s former personal solicitor Betty Boustani, who was hired by council as a “senior adviser” in the mayor’s office with a salary of $250,000 a year. Mannoun denied having any involvement in her recruitment, saying she stopped undertaking legal work for him several years ago, and he only notified council of her availability.

An ICAC spokeswoman said: “The commission does not comment on whether it has received referrals, and does not confirm or deny if it is undertaking investigations.”

Mannoun said he would not stand aside in light of the findings, claiming “all the matters” contained in the report related to operations outside the purview of the mayor and elected members of the council.

Taken to an excerpt of the report which stated there was a “compelling argument … that councillors and the mayor are allegedly inappropriately lobbying staff on development and compliance matters”, Mannoun said: “I stand by that any day of the week.

“Us asking questions about why things are taking so long, or are people being treated badly, is not an issue,” he said. “It happens every single day, every councillor, every mayor does it.”

Ross Glover, a barrister from Wentworth Chambers who previously served as commissioner during a public injury into Wingecarribee Shire Council, has been appointed commissioner of the Liverpool City Council inquiry.

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