Queensland CCC boss ‘crossed the line’

The head of Queensland’s corruption watchdog personally asked Logan City Council’s administrator to reinstate star whistleblower Sharon Kelsey as the council's chief executive.

Queensland Crime and Conduct Commission chairman Alan MacSporran. Picture: Liam Kidston

The administrator appointed to run the Logan council after its councillors were sacked over fraud charges was “concerned about a conflict of interest” when Queensland’s corruption watchdog boss personally asked her to reinstate whistleblower Sharon Kelsey as the council’s chief executive.

The move would have ensured the $2.5m in legal fees accumulated by Ms Kelsey in her private unfair dismissal case were covered by the council.

A parliamentary committee has heard evidence detailing the lengths to which the Crime and Conduct Commission went to aid its star whistleblower and a perceived lack of objectivity in the investigation into alleged corrupt­ion within the council at Logan, south of Brisbane.

Interim administrator Tamara O’Shea, a senior Queensland public servant, told the committee on Thursday she was shocked by CCC chairman Alan MacSporran’s phone call to advocate for Ms Kelsey’s reinstatement while the criminal and civil proceedings were ongoing. “I was very surprised by the call and I would have to say that’s the reason I made a file note,” Ms O’Shea said.

“I was somewhat taken aback he would call me in relation to the litigation and reinstatement.

“I was concerned there was a conflict of interest from Mr MacSporran in making that call to advocate for Ms Kelsey’s reinstate­ment and questioning why coun­cil was persisting in its litigation.”

When Ms O’Shea refused to reappoint Ms Kelsey, the CCC discussed asking the Local Government Minister to replace her as administrator and considered seeking an injunction in the ­Supreme Court.

The parliamentary inquiry has heard details about the CCC investigation into Logan councillors who were charged with fraud in 2019 after they voted to dismiss Ms Kelsey, who had turned whistleblower against former mayor Luke Smith two days after he raised concerns on her performance in a probation review.

The CCC alleged the councillors aligned with Mr Smith had sacked Ms Kelsey out of revenge, but in April the prosecution against the councillors was dropped. Also in April, the Queensland Industrial Relations Commission ruled against Ms Kelsey in her unfair dismissal case.

Ms O’Shea was appointed as interim administrator of Logan City Council in May 2019 after the charging of the councillors triggered their suspension and the council could no longer form a quorum.

The phone call from Mr MacSporran came a day after Ms O’Shea had told Ms Kelsey’s lawyers she would not be temporarily reinstated as CEO while the QIRC proceeding was ongoing.

He wanted to know why the council was persisting in its defence of the litigation and suggested Ms O’Shea reinstate Ms Kelsey, who was suffering financially. “I don’t think I gave him an indication as to whether I would reinstate or not, other than to suggest I would take on board his suggestion,” Ms O’Shea said.

During his testimony last week, Mr MacSporran said he called Ms O’Shea to ask her view on Ms Kelsey’s reinstatement.

He rejected the idea the councillors were charged for the “ulterior motive” of assisting Ms Kelsey in her QIRC matter.

After failing to convince Ms O’Shea to reappoint Ms Kelsey, Mr MacSporran asked then local government minister Stirling Hinchliffe to cover her $2.5m in legal fees. Mr Hinchliffe refused.

Ms O’Shea also said Mr Hinchliffe’s office had contacted her to say Ms Kelsey had asked to meet. She declined, saying it was “in­appropriate” and a “conflict”.

Ms Kelsey declined several offers to be paid her salary while the QIRC matter was ongoing.

“At that point, Ms Kelsey’s view was that her only remedy was reinstatement,” Ms O’Shea said.

She said a review run during her tenure found no evidence of a “voting bloc” among the council, as alleged by Ms Kelsey and the CCC. Emails have also revealed the close relationship the CCC had with lawyers representing Ms Kelsey in the QIRC proceeding.

Under questioning on Thursday, investigating officer Detective Sergeant David Beattie denied the intent was to remove Ms O’Shea as administrator because she had declined to reappoint Ms Kelsey.