Queensland corruption watchdog probe call

The sacking of a top level witness in the corruption investigation of a Queensland mayor has been backed by an industrial commission which questioned her credibility in giving evidence.

Former Logan Council chief executive Sharon Kelsey leaves the Magistrates Court in Brisbane. Picture: Dan Peled

The sacking of a top-level witness in the corruption investigation of a Queensland mayor has been backed by an industrial commission, which questioned her credibility in giving evidence.

Former Logan council chief executive Sharon Kelsey lost her dismissal claim, which led to fraud charges being laid against seven councillors Queensland’s Crime and Corruption Commission alleged had sacked her in retribution for turning whistleblower against then mayor Luke Smith.

The charges, which led to the disbandment of Logan council, were sensationally dropped this month, sparking calls for a public inquiry into the actions of the CCC and chairman Alan MacSporran.

The decision of the Queensland Industrial Relations Commission was handed down last month but can only be revealed now after a suppression order was lifted on Thursday.

The charges cut short the political careers of Russell Lutton, Trevina Schwarz, Cherie Dalley, Phil Pidgeon, Steve Swenson, Laurie Smith and Jennie Breene, who were sacked under new Palaszczuk government legislation.

Ms Kelsey had claimed the councillors breached the Industrial Relations Act and Public Interest Disclosure Act by sacking her, but the QIRC found the evidence did not support the claim.

During the QIRC hearing, the councillors described the council at the time as “toxic” and accused a “divisive and destructive” Ms Kelsey of making a public interest disclosure to the CCC against the mayor to “make herself a protected species” when a probationary review found issues with her work.

Commissioner Daniel O’Connor found “Ms Kelsey sought to inextricably bind up her act of making a complaint with respect to the suspected corruption with her response to the performance concerns arising out of the probationary process”.

Mr O’Connor said the evidence did not support “a causal link between the conduct alleged against Mayor Smith and the termination of Ms Kelsey‘s employment”. Former mayor Mr Smith is still facing corruption charges.

The commissioner found Ms Kelsey was an “unimpressive witness” who deflected responsibility.

Among the reasons given for her dismissal were poor staff management, lack of confidentiality and substandard understanding of Queensland councils.

Ms Dalley said Ms Kesley’s tenure fostered a “high degree of distrust” among councillors, five of whom were seen to have developed “unprofessional relationships” with the CEO. Those five – Darren Power, Lisa Bradley, Jon Raven, Laurie Koranski and Stacey McIntosh – regularly voted in a bloc against the mayor and most of the councillors charged.

The charged councillors accused the CEO of attempting to create division within the council by aligning herself with “the five”.

Mr Swenson alleged Ms Kelsey was being unknowingly used “as a pawn in Councillor Power and Councillor Bradley‘s attempts to get rid of the mayor”.

After the council was disbanded, four of “the five” were appointed to assist the administrator with running the council and were re-elected to the council last year, with Mr Power becoming mayor.

Local Government Association of Queensland CEO Greg Hallam said the QIRC’s decision unmasked the truth behind Ms Kelsey’s dismissal and called for an investigation into the CCC.