A trouble-plagued Perth local government has been referred to the state’s corruption watchdog following years of turmoil in its ranks.
The City of Nedlands made headlines this month when four councillors resigned, leaving it without a quorum and prompting the local government minister to remove those remaining and appoint commissioners in their place.
An ABC investigation can now reveal separate concerns about the City of Nedlands have been referred to the Corruption and Crime Commission (CCC) by the Public Sector Commission.
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It is understood the referral took place in July. (ABC News: Julian Robins )
The ABC understands the referral took place earlier this month.
This step is in addition to recent concerns about governance, audits and workplace complaints that have formed the basis of investigations by the Department of Local Government and Worksafe.
A referral to the CCC does not mean it will launch an investigation and the ABC is not suggesting that a referral implies any findings of wrongdoing.
Commissioners start work Friday
On Wednesday, three commissioners were appointed to run the council until a special election is held on March 28, circumventing scheduled elections in October.
Nedlands election delayed after council sacked
Local Government Minister Hannah Beazley said this was to give the trio time to ensure the next budget was passed.
Financial irregularities at the council were highlighted by the auditor-general last year.
In a damning report, he found the council failed to keep accurate enough records needed to complete an annual audit.
Commissioner chair David Caddy said he and his colleagues were committed to bringing trust and integrity back into the governance systems at the council.
Three commissioners including Mr Caddy (left) are at the helm of the council. (ABC News: Courtney Withers)
Investigation won’t be made public
A separate investigation has been running by the Department of Local Government into the council since May.
The minister said that investigation was examining “the functioning of the council, how they were operating, the behaviours that were on display and how that was affecting good governance at the council”.
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It is now finished but not finalised, but the minister said the results of such investigations were not usually made public, although they would be provided to the newly-appointed commissioners.
She said it was possible the outcome could provide grounds for an inquiry by her office, which would invoke broader powers under the Local Government Act.
Mayor defends record on hospice
Controversy also haunted the council in recent months after it refused to give up land to the Perth Children’s Hospital Foundation for a parkland for sick and dying children.
Mayor Fiona Argyle issued a statement on Wednesday saying she had been “rolled” by the state government for doing her job “protecting A-class nature reserves from property developers”.
Ms Argyle is adamant on her position regarding the hospice. (ABC News: Courtney Withers)
“If I do run again, I can assure the community there will be no property developer getting their hands on the most protected lands in our nation,” Ms Argyle said.
The Perth Children’s Hospital Foundation, a registered charity, wanted to transform Allen Park into a parkland for terminally ill children.
In a now-infamous interview on ABC Radio Perth earlier this month, Ms Argyle defended that decision, saying it was like “giving away” Hyde Park or Jardin du Luxembourg in Paris.
The children’s hospice is to be built on a part of Allen Park that has long been neglected. (Supplied: Perth Children’s Hospital Foundation)
“No one on this planet is against dying children, no one hates dying children, everyone loves dying children,” she said.
“What I don’t like and the city doesn’t like, it was a unanimous decision, that is the city’s land.”
The state government took control of the land in early June in order to progress the children’s hospice.
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