‘You don’t use a stranger’s toilet’: Whistleblower calls out Cairns Regional Council over Mayor-CEO conflict of interest concerns
The Cairns mayor’s efforts to name her campaign advisor as interim CEO have been slammed by the former top boss of a Far North Queensland council, labelling her decision not to publicly declare a conflict of interest as ‘extraordinary’.
The Cairns mayor’s efforts to name her campaign advisor as interim CEO have been slammed by the former top boss of a Far North Queensland council, labelling her decision not to publicly declare a conflict of interest as “extraordinary”
But the civic leader has hit back, arguing that councillors followed the correct process “expressly set out” in the Local Government Act to give John Andrejic the job ahead of more than 30 other applicants.
Cairns Regional Council Mayor Amy Eden chaired the recruitment panel that recommended her “professional associate” Mr Andrejic to the key role in late May.
The Cairns Post is not suggesting Mr Andrejic isn’t qualified for the role.
The retired local government officer, who asked to remain anonymous, said the council appeared to have faltered by determining that Ms Eden had a “declarable” rather than a “prescribed” conflict of interest at a special meeting in late May.
Under the Local Government Act, a councillor has a prescribed conflict of interest if “a person who is being considered for appointment as the chief executive officer of the local government is a close associate of the councillor and the matter is or relates to the appointment of the person”.
Confidential documents recently revealed further details around the duo’s connection, with Ms Eden having stayed at Mr Andrejic’s house on three occasions between September 2021 and July 2022.
Ms Eden said she paid “full price” for the accommodation and also used Mr Andrejic’s bathroom on two separate occasions.
The pair also met frequently for lunches with Mr Andrejic donating money to her campaign.
The whistleblower said Ms Eden’s previous ties to Mr Andrejic should have been enough to preclude her from presiding over the recruitment panel for the council’s interim CEO role.
“She stayed in his accommodation and she used his toilet facilities,” they said. “That is a close relationship. You don’t use a stranger’s toilet.
“From day one, she shouldn’t have had any involvement in the recruitment of the CEO.”
In the Act, a councillor has a prescribed conflict of interest “if the matter is or relates to a contract between the local government and the councillor, or a close associate of the councillor”.
“There’s no need for it. It’s just so simple,” the whistleblower said.
“The CCC tells you that if you feel any concern whatsoever, declare. That’s all that had to be done. To me, it’s really simple and if that person’s so good, they’ll be shortlisted anyway.”
Allowing the Mayor to participate in discussions that led to Mr Andrejic getting the job was a mistake, the whistleblower said.
“She’s in the room, sitting at the high table and staring at everybody,” they said.
In a minuted, closed door meeting with councillors and Troy Webb from McCullough Robertson Lawyers held on May 20, Ms Eden attempted to allay concerns prior to Mr Andrejic’s appointment.
“I am voluntarily disclosing this to you as it is below the threshold to be publicly disclosed,” Ms Eden told her fellow councillors in a statutory declaration.
“However, I am putting everything on the table so you can be certain. When I ran for mayor, I put everything on the line.
“I worked my ass off to get into this position.”
DECLARABLE RATHER THAN PRESCRIBED
At a special meeting on Wednesday, May 29, Cairns councillors voted to name Mr Andrejic as its interim CEO – but not without drama.
Councillors first voted 5-4 that the mayor had a declarable conflict of interest in relation to the appointment of the interim CEO.
The city’s leaders were then forced to decide whether Ms Eden’s conflict of interest should preclude her from engaging in discussions related to the CEO appointment.
But Division Seven councillor Anna Middleton sided with Ms Eden, giving the mayor the majority and after entering a closed session, Ms Eden’s confidante emerged as the recommended CEO.
A council spokesperson defended the process to appoint Mr Andrejic.
“It is entirely ordinary for eligible councillors to decide to allow a councillor with a DCOI (declarable conflict of interest) to participate in a decision despite the DCOI,” the spokesperson said.
“The councillors followed the process expressly set out in the LGA.”
In a statement, Ms Eden denied having a prescribed conflict of interest.
“Throughout the whole process, I have followed the advice of Council’s legal advisors and the advice of the Acting CEO to the letter,” she said.
“Chapter 5B Part 2 of the Local Government Act (LGA) exhaustively identifies the circumstances in which a Prescribed Conflict of Interest (PCOI) may arise for a councillor and, if it does, how that conflict is dealt with.
“Because none of the circumstances identified in this Part apply in this instance, there is clearly no PCOI as prescribed in the LGA (Local Government Act).”
‘MONEY IS BEING THROWN AWAY’
The decision to part ways with former chief executive Mica Martin less than two weeks after Ms Eden was sworn in as Mayor was a waste of ratepayers’ money, the whistleblower said.
Ms Martin’s contract had about a year left with remuneration estimated to be between $300,000 and $400,000 per year.
“The (former) CEO is now being paid out,” they said.
“That’s potentially $350,000 in public money and she hasn’t even had to work for it.
“That’s what narks me, especially when we have a 6.7 per cent increase in rates.
“It frustrates me that money is being thrown away like that.”
Cairns Regional Council has refused to discuss the financial details of Ms Martin’s exit.
Asked if Ms Eden and Mr Andrejic had been contacted by the CCC, the spokesperson said, “No”.
The CCC did not respond to requests for comment from the Cairns Post prior to deadline.
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