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‘Toxic environment’: Former Logan chief’s dismissal claim thrown out
By Matt Dennien
Queensland’s Industrial Relations Commission has thrown out an attempt by former Logan council chief executive Sharon Kelsey to have her high-profile 2018 sacking overturned in a decision that outlined a “toxic environment” within the local government.
That vote ultimately resulted in the Crime and Corruption Commission arresting seven councillors and the then-mayor on fraud charges, which were dropped this month, and the dismissal of the entire council.
Sharon Kelsey was appointed as chief executive in June 2017 after a period of instability in the role.Credit: Alexandra Weaver
The new decision, previously suppressed by the tribunal to avoid impacting any trial for those charges, reignited calls from the Local Government Association of Queensland for an independent inquiry into the actions of the CCC.
Published on Thursday, the decision by QIRC vice-president Daniel O’Connor found that evidence for Ms Kelsey’s claims the seven were politically aligned with mayor Luke Smith and voted accordingly under his direction did “not support the contention”.
“Councillors were divided broadly between those who supported Ms Kelsey and those who did not,” Mr O’Connor wrote. “The depressing saga that this matter became was set against a background of pettiness, distrust and vitriol; a factionalised council consumed by self-interest and point-scoring.”
Ms Kelsey was appointed in June 2017 after a period of instability in the role and by September had “formed a reasonable suspicion” of Mr Smith’s behaviour, lodging a public interest disclosure through her lawyers a month later, the tribunal heard.
This had followed concerns raised about her own performance in a review meeting and initial industrial relations proceedings against the council and Mr Smith — who has been committed to stand trial on separate charges.
After this point Ms Kelsey claimed the alleged behaviour towards her from Mr Smith, along with Russell Lutton, Cherie Dalley, Phil Pidgeon, Steve Swenson, Laurie Smith, Trevina Schwarz and Jennie Breene, changed.
A new probation process was decided upon and an extension to January 2018 agreed to by Ms Kelsey and the council. Though Mr Smith was excluded from this, Ms Kelsey claimed he continued to play a role, including in a WhatsApp messaging group that all but Mr Lutton were a part of.
After the vote to end her employment in February 2018, Ms Kelsey also named the other seven councillors in her claim seeking damages, reinstatement until the end date of her contract in June 2021 and declarations the group had taken adverse action against her.
In making his decision, Mr O’Connor said the case had to be viewed within the prism of what three of the councillors described as a factional and “toxic environment”.
“The applicant has been caught in a tussle between two competing forces,” Mr O’Connor wrote. “Unfortunately for Ms Kelsey, she has become embroiled in the battle.”
Transcripts of the group message thread uncovered by the corruption watchdog found no discussion of any proposed voting intentions to eventually terminate her employment, Mr O’Connor said.
There was no other evidence of co-ordination, with some councillors also having voted against her appointment in the first place and others being aligned to differing, or no, political parties.
The CCC had warned them before the vote it would look at any action taken against Ms Kelsey, who Mr O’Connor said had not been an “impressive” witness and has been contacted for comment through her lawyers.
In a statement, LGAQ chief executive Greg Hallam said the published decision was further vindication of the councillors but did not change the fact their lives had been “ruined” and a council wrongly dismissed.
“The government can no longer ignore the need for an independent inquiry,” he said.
CCC chair Alan MacSporran insisted the watchdog acted appropriately, while Premier Annastacia Palaszczuk has said any issues could have been raised within a five-year review of the body due by July.