In closed council meetings, Casey councillors agreed to bankroll then-mayor Sam Aziz’s private defamation action against a resident, an IBAC hearing has revealed.
Defying council officer advice, the councillors secretly agreed to fund up to $69,000 for Mr Aziz’s legal costs in his lawsuit against a resident who posted comments on Berwick Springs Estate Facebook page in 2017.
In mid-2019, councillors voted to provide a further $11,000 to Mr Aziz after the legal costs cap was exceeded.
The resident’s comments had inferred that Mr Aziz was cosy with a “cashed-up developer” in relation to a controversial roundabout at Berwick Springs.
IBAC is currently investigating allegations that Mr Aziz received $900,000 from developer John Woodman while voting and lobbying in favour of Mr Woodman’s proposals at council.
In confidential briefing notes to Casey CEO Glenn Patterson, a Casey council officer wrote that the decision was lawful but there was “significant potential for criticism and reputational damage”.
Mr Patterson told IBAC that the initial councillor decision was made in early 2017, some18 months before he started at Casey. Only one of the 11 councillors voted against the action, Mr Patterson said.
However, the decision to provide $11,000 in extra legal funding was on Mr Patterson’s watch.
Although he had concerns and considered the move “unusual”, Mr Patterson said he didn’t have authority to make decisions on the legal funding.
“I have no power, again, to review or rescind council decisions that were made months or in some cases years before I arrived.
“But the consistent officer advice prior to and post my arrival in relation to this matter is that the council should not be funding what’s essentially a private action with the use of public funds.”
IBAC principal lawyer Amber Harris said: “Essentially the ratepayers funded that action?”
“That is absolutely correct,” Mr Patterson said.
He said under the Local Government Act, the issue could be decided in closed council because it related to legal action.
The decisions could have be prevented if there was a provision outlawing council support for a councillor’s private legal matters, Mr Patterson said.
Ultimately the issue cost Casey Council $65,000 – after the resident settled with Mr Aziz.
“There was a requirement that any settlement that occurred as a result of the action, that those funds would flow to the council to offset that cost,” Mr Patterson said.
“My understanding is a settlement of in the order of $15,000 was made. So the nett cost to the council was in the order of $65,000.”
The Age reported that the sued resident settled with Mr Aziz for $80,000, including damages and legal fees, in May 2019.
When initially asked by IBAC about being briefed about a defamation action, Mr Patterson said he’d need clarification.
“There’s a number of defamation actions on foot.”
