Glenorchy City Council review decision query

GLENORCHY City Council paid a company headed by former Victorian premier Jeff Kennett almost $450,000 to do an operational review of the council’s functions.

GLENORCHY City Council paid a company headed by former Victorian premier Jeff Kennett nearly $450,000 to do an operational review of the council’s functions.

The services of CT Management group — of which Mr Kennett is the director — was engaged without the council going to tender but legal advice to management by barrister Bruce McTaggart said this did not breach the Local Government Act or council rules.

But Glenorchy alderman Matt Stevenson said he hoped Local Government Minister Peter Gutwein and the board of inquiry would look at the matter.

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He said he was concerned the council was giving a significant amount of money to the one provider without assessing other options.

“Given the situation ... with Mr Gutwein announcing he is considering suspending the council, I think it’s appropriate I make little comment on this situation,” Ald. Stevenson said.

“But I hope that Mr Gutwein and the board of inquiry look at the fact that council has spent nearly $450,000 in one year with one provider without going to tender.

“That is of great concern to me and the community.”

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Advice by Mr McTaggart to the council, obtained by the Mercury, found the council paid CT Management $445,515.84 last financial year without going to tender.

The Local Government Act requires that any project over $250,000 must go to tender

Out of the total, just over $215,000 was spent on a service level review of the council, while $113,606.49 went to human resources consultancy.

The service review focused on the council’s business and finance, operations and governance and compliance.

But Mr McTaggart said in his opinion there was no requirement for public tender because the contracts were for separate and did not trigger the threshold of $110,000.

However Mr McTaggart did say two of the programs, the service level review and the human resources consulting services, “exceeded $109,999”.

A spokesman for the Glenorchy general manager referred the Mercury to Mr McTaggart’s advice, saying the engagement of CT Management complied with public tender requirements.