Ousted Sydney council CEO blindsided by shock dismissal, inquiry hears

Liverpool Council’s ousted chief executive John Ajaka was blindsided by a decision to sack him weeks after he told Mayor Ned Mannoun to “shut the f--- up” in a meeting, an inquiry has heard.

The remark ratcheted up tensions between Mannoun and Ajaka, triggering a war of words which culminated in the move to place Ajaka on leave before his council contract was terminated last year.

Former Liverpool City Council chief executive John Ajaka, a former president of the NSW Legislative Council, arrives at the inquiry on Wednesday.Credit: Edwina Pickles

A public inquiry into alleged dysfunction and maladministration at the south-west Sydney council on Thursday heard an independent report had found Ajaka’s remark “while unprofessional, was in and of itself trivial” and discovered no evidence to support misconduct allegations against Ajaka.

Ajaka told the inquiry that, although rumours had swirled that Mannoun was considering axing him, he was given no warning before the matter was raised in closed session during a council meeting.

“I was given no procedural fairness whatsoever. It was all happening behind closed doors,” he said.

The inquiry on Wednesday heard Ajaka, a former Liberal MP, had known Mannoun through political circles when he urged Ajaka to apply for the chief executive role in December 2022. Ajaka got the job and signed a five-year contract with an annual salary package of $550,000.

But their relationship had become fractious by late 2023, as Mannoun had allegedly urged Ajaka to sack staff, “bullied” councillors during meetings, and became increasingly obsessed with social media.

Tensions between the pair erupted after a meeting to discuss budget and staffing matters on April 16, 2024, when Mannoun is alleged to have demanded Ajaka sack staff, including two council directors, and a frustrated Ajaka told the mayor: “For the love of God, shut the f--- up, enough”.

Ajaka said that meeting had continued, but a few days later he received an email from Mannoun saying he did “not feel safe at my place of work … purely because of the manner in which you spoke to me at the meeting”. “Abusing and bullying behaviour is unacceptable in any workplace – especially Liverpool City Council,” Mannoun had written. He also expressed disappointment at Ajaka’s “lack of remorse” and failure to “reach out to me personally to remedy your actions”.

In an email in response, Ajaka accused Mannoun of “bullying me for months now and trying to compel me to undertake actions which I have told you repeatedly I am unable to, nor is it appropriate that I do”. He said he had tried to meet and apologise for his “unacceptable” remark.

Liverpool Mayor Ned Mannoun is serving his third term on the council.Credit: Dion Georgopoulos

Ajaka admitted, under questions from counsel assisting the inquiry, Trish McDonald, SC, that in hindsight a swift apology to Mannoun might have prevented the situation from escalating.

Ajaka told the inquiry he first got wind of a potential push to dismiss him a few days later when he learnt that a United Services Union (USU) advocate had publicly circulated an email, dated April 22, which alleged Mannoun had “become a law unto himself, and is now moving to dismiss the CEO at the next council meeting … due to the fact that CEO refused to terminate some directors”.

He said he sat next to Mannoun at a council meeting on April 24, which began with the usual formalities before councillors went into closed session to debate a confidential mayoral minute.

Ajaka said he only suspected the discussion was about his role when Mannoun had asked him to leave.

“[Prior to that] I really did not believe the mayor would move to terminate me, even though it had been talked about, I just didn’t accept that because I had been given no notice.”

Ajaka said Mannoun soon after told him councillors had adopted a mayoral minute which recommended he be placed on paid leave immediately, pending an independent investigation, and the council’s director of operations, Jason Breton, replace him as acting chief executive.

It was only when an external consultant preparing a report contacted him that Ajaka learnt the mayor’s complaint stemmed from his conduct at the April meeting and his failure to apologise.

An interim report on May 27 indicated a final report would be completed within two weeks and recommended the council wait for the findings of the investigation; however, a mayoral minute to terminate Ajaka’s contract passed with the mayor’s casting vote at a council meeting on May 29.

Former Liverpool City Council chief executive John Ajaka gives evidence in the NSW Office of Local Government inquiry on Thursday.

The inquiry heard a termination letter, which Ajaka received after that meeting, cited several instances of “unsatisfactory conduct”. They included allegations he failed to provide requested financial modelling, had fuelled rumours Mannoun wanted to sack 150 employees, and that his remarks telling the mayor to “shut the f--- up” caused Mannoun “significant distress and anxiety”.

Ajaka, who was dismissed without pay, said he also had no warning the matter would again be raised at council before the consultant’s final report – which he had never seen – was handed down.

The report, provided to the council last June and raised in the inquiry, found no evidence of misconduct against Ajaka. It said his comment to Mannoun “while unprofessional, was in and of itself trivial, and could and should have been managed at the time through council’s existing policy processes, which most likely would have prevented the matter from escalating”.

The inquiry heard the report observed Mannoun made comments about Ajaka’s age that had “the appearance of age discrimination”, and recommended he be spoken to about appropriate language.

The consultant later told the council he would normally recommend mediation in such a matter.

Ajaka had launched legal action against the council over his dismissal; however, the parties instead reached a settlement which resulted in Ajaka receiving $270,000 plus $80,000 in legal costs.

The hearing continues, and has been set down for five weeks. Mannoun is yet to provide evidence.

His lawyer on Thursday said she would not be in a position to cross-examine Ajaka until next week.

The inquiry is examining councillors’ conduct, as well as the council’s handling of finances, property purchases, employment, and $150 million in state government grants for infrastructure projects.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.