Watchdog rules out follow-up investigation

Mike Tyler was on a good behaviour bond during a condemned scheme to charge residents extra to seal a road, although there is no suggestion of any wrongdoing by him. 20847 Picture: STEWART CHAMBERS

By CAM LUCADOU-WELLS

The local government inspectorate has ruled out investigating Casey council over a special-charges scandal which has been condemned by the Victorian Ombudsman.
Casey council’s special charge scheme against 37 Narre Warren South residents to seal Market Lane was labelled “unjust” and appeared in-part illegal in a Victorian Ombudsman report released on 22 June.
Of particular concern to the Ombudsman was the council’s decision to increase the interest charge by several thousand dollars at a closed meeting in 2014, without giving residents an opportunity to object.
Casey Residents and Ratepayers Association spokesman Brendan Browne backed the State Government’s appointment of an external monitor to oversee Casey council for up to three months as a result of the Ombudsman’s report.
“The ratepayers of Market Lane who were unfairly affected have been treated appallingly,” Mr Browne said.
“Councillors and the CEO should have known how grossly unfair their actions were.
“Perhaps that is why they regularly hide their decisions in secret meetings.”
The council ranks highest in Victoria for decisions made in closed meetings (37 per cent) in 2014/15. The figure was triple the state-wide average.
The Ombudsman’s report found the council had appeared to have acted illegally twice under the Local Government Act by failing to give notice to residents of their right to object and by holding a closed meeting to decide on a new interest rate on the scheme.
Mr Tyler had conceded in evidence to the Ombudsman that it was “in retrospect … an error” to hold the decision in closed council.
Mr Browne said it was “extraordinary” that at the time of the secret meeting Mr Tyler was under a 12-month good-behaviour bond for a separate breach of the Local Government Act.
However, there has been no suggestion of any impropriety by Mr Tyler personally.
Casey corporate services director Sheena Frost said “the Ombudsman has not suggested that any offence was committed”.
“Therefore, there is no suggestion of any unlawful conduct by any individual.”
A Local Government Investigations and Compliance Inspectorate spokesman stated the Ombudsman’s report related to administrative actions by Casey “which do not give rise to an offence” under the Local Government Act.
In regard to the use of the monitor, Narre Warren North MP Judith Couacaud Graley said the decision was a “victory for ratepayers and it should be a wake-up call for council”.
“In this case the ombudsman has made it clear there have been failings at Casey and the Andrews Labor Government believe it is crucial that they are addressed.
“If the council followed the rules in the first place there would be no need for this.”
The Municipal Association of Victoria, the Victorian Local Governance Association as well as Casey Mayor Sam Aziz, criticised the monitor’s appointment.
Victorian Local Governance Association president Sebastian Klein said the appointment was “without merit” given Casey had “been quick to acknowledge the matters at hand”.
Cr Klein said it was a missed opportunity to have a “more reasoned and constructive conversation” on the council’s use of confidentiality.
“What’s more, at no point has the Minister picked up the phone and discussed this matter with the council.
“You have to ask the question whether this is more about publicity than it is about a fair and reasonable response.”
Casey Mayor Sam Aziz had labelled the monitor’s appointment as “over the top” and a “political move”.
“Council is already implementing a number of the recommendations outlined in the Ombudsman’s report including improving the availability of information to ratepayers about special charge schemes, and publishing this on council’s website.”
Most of the affected property owners had been against the charge to seal Market Lane in Narre Warren South – initially between $15,000 and $20,000 each, plus interest on a 15-year instalment plan.
As a result of the secret interest rise, the amount payable increased by 23 per cent, the Ombudsman’s report stated.
The Ombudsman recommended Casey consider refunding the increased interest, and releasing all minutes and documents relating to the closed meeting.
Casey council is set to consider those recommendations at a meeting on 5 July.