Integrity Commission report berates acts of former Glenorchy Council mayor and officers

A DAMNING Integrity Commission report has made findings against two former senior Glenorchy City Council officers and a former mayor over attempts to gain financial benefits of up to $1 million.

Former Glenorchy City Council general manager Peter Brooks. Picture: RICHARD JUPE

A DAMNING Integrity Commission report has made findings against two former senior Glenorchy City Council officers and a former mayor over attempts to improperly gain financial benefits of up to $1 million.

Following an operation codenamed Pyramid, the Integrity Commission has released its report into the conduct of former Glenorchy general manager Peter Brooks, director of corporate governance and general counsel Seva Iskandarli, and former mayor and later alderman Stuart Slade.

The report, which has been tabled in State Parliament, made 56 findings, including that there were several occasions over a three-year period from 2013-2016 that Mr Brooks and Ms Iskandarli directly benefited from the actions of one another.

It is understood the report has been referred to Tasmania Police.

Ms Iskandarli was involved in amending Mr Brooks’ contract twice, both times at the request of either Mr Brooks or Ald Slade.

Former Glenorchy Council general counsel Seva Iskandarli.

Mr Brooks, who was Ms Iskandarli’s boss, received an almost $70,000 annual payrise as a result of one of these negotiations in 2013, and at the same time promoted Ms Iskandarli to a new position with a $25,000 annual pay increase and bonus entitlements.

Ms Iskandarli was found to have acted with a conflict of interest.

In December 2016 Ms Iskandarli and Ald Slade, who was chairman of the general manager’s performance review committee, recommended that council approve amendments to Mr Brooks’ contract which “significantly enhanced” his termination entitlements.

The Integrity Commission report reveals a number of the proposed changes to Mr Brooks’ contract were made by Mr Brooks’ lawyer and Mr Brooks himself — including one that would provide Mr Brooks with a payout of 12 months’ salary or the remainder of his contract (up to five years), whichever was greater, if he was terminated for poor performance.

Three weeks earlier, the council’s communications consultant Tony Harrison had emailed Mr Brooks and Ms Iskandarli to advise them that Huon Valley commissioner Adriana Taylor had sacked that council’s general manager Simone Watson after that council was dismissed.

The Integrity Commission found that “Mr Brooks sought to increase his termination entitlements due to his concern that his employment would be terminated as a result of the board of inquiry process”.

The report also found that it would have been reasonable to expect that Ms Iskandarli and Ald Slade would notify the council that the changes to Mr Brooks’ contract would be a significant extension of the council’s obligations to Mr Brooks, but neither did.

“The degree of loyalty between Mr Brooks, Ms Iskandarli and Ald Slade existed at the expense of objectivity or the interests of the council,” the report states.

Former mayor and alderman Stuart Slade.

Mayor Kristie Johnston adjourned the special meeting of council called to vote on the changes, and alongside then Ald Matt Stevenson referred the matter to the Integrity Commission, sparking operation Pyramid.

Earlier attempts by Ald Johnston and Ald Stevenson to raise concerns about conflicts of interest within the council resulted in “fervent opposition and strong personal criticism”, the Integrity Commission said.

The Integrity Commission found that in a separate instance Ald Slade, in his role as chairman of the general manager’s performance review committee, was responsible for changing the methodology used by the committee to determine whether the general manager received a bonus payment in order to ensure Mr Brooks received an $18,000 payment that he would not otherwise have received.

Ms Iskandarli was found to have amended the position description for a newly created role in order to insert qualifications she had recently obtained.

She was later promoted into the position after it was advertised only internally, unlike two other new director roles which were filled externally.

Shortly after, Mr Brooks also made Ms Iskandarli the council’s general counsel, a position Mr Brooks did not understand and that the council did not need, according to the report.

That position was never advertised.

Ald Johnston and Ald Stevenson said they felt vindicated by the report.

Ald Johnston said the impact of the behaviour on the Glenorchy Council had been “great” and there had not yet been justice.

The release of the report comes as Glenorchy ratepayers look set to face a significant rate rise to cover bills run up by the former council.

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“It is unfair that the burden of that falls on our ratepayers,” Ald Johnston said.

“The consequences of this misconduct will borne by the community but there has been no consequences for the individuals who have clearly been found doing the wrong thing.”

Ald Johnston said she was confident similar conduct no longer occurred at the council.

The complaint to the Integrity Commission was accepted for investigation in January 2017, just before Local Government Minister Peter Gutwein moved to suspend the council.

Mr Gutwein on Tuesday said the report made for “very concerning reading”.

He said Director of Local Government Alex Tay was reviewing the report and further investigating a number of matters to determine whether it should be referred to the Director of Public Prosecutions.

The Integrity Commission has also asked Mr Tay to consider whether the misconduct constitutes offences under the Local Government Act.

Labor local government spokesman David O’Byrne said the government should have intervened in the Glenorchy Council earlier.

“It’s the poor ratepayers of Glenorchy who are now lumbered with what seems to be a massive increase in their day-to-day rates,” he said.

“They’ve done nothing wrong, but they’re having to bear the brunt of what has been a very sorry and sad tale in governance.”

Mr Brooks declined to comment, while Mr Slade did not respond to a request for comment.

A mobile number for Ms Iskandarli was disconnected.

In a written statement, Mr Slade said: “I note the Integrity Commission Report and comments from its CEO. I vehemently deny any conflicts of interest or wrongdoing in my former role as chair of the General Manager’s Performance Review Committee. As a former alderman for nearly 27 years, including three years as Mayor, I have always acted professionally and diligently.”