Internal revolt is intensifying at the City of Perth over the newly elected lord mayor’s pursuit of a ratepayer-funded workplace culture review, in a process deemed unlawful by his own administration.

The council’s acting CEO has resigned amid the saga, though it is unclear exactly why, while the local government minister has expressed concern and flagged she would be willing to intervene if necessary.

Bruce Reynolds, who was sworn in as lord mayor in October, is said to have given councillors just six minutes’ notice last week about his intention to order a $125,000 independent workplace culture review.

Perth Lord Mayor Bruce Reynolds speaks at a press conference.

Bruce Reynolds was sworn in as lord mayor of the City of Perth just over a month ago.  (ABC News)

In a scathing take-down of that process published on the council’s website overnight, the now-outgoing acting chief executive, Peta Mabbs, said that would be a “poor use of ratepayer funds” and contravene several state and local regulations and policies.

“It is not a lawful decision and is therefore unable to be implemented,” Ms Mabbs wrote.

A mid-shot of Peta Mabbs smiling for a photo, wearing a black top and white necklace in front of a colourful painted wall.

Peta Mabbs’ scathing report was published on the council’s website.  (LinkedIn: Peta Mabbs)

She said no workplace culture issues were raised during a review of the CEO’s performance in August, nor when planning her areas of focus in the year ahead.

How did we get here?

At a November 18 council meeting, a motion was passed to consider the establishment of a workplace culture committee to probe issues within the council’s administration.

Law firm Mills Oakley was proposed to be the independent consultant to conduct a review, at a cost of $125,000 plus GST.

No questions or debate on the proposal were allowed.

That raised alarm bells for the councillors who voted against it, including Cr Catherine Lezer, who flagged her intention to attempt to revoke that decision at the next council meeting in December.

A middle-aged woman with short curly brown hair wears headphones in a radio studio. She is smiling.

Catherine Lezer was one of the councillors who voted against the motion.  (ABC Radio Perth: Ashleigh Davis)

But the original decision was upheld at a last-minute and behind-closed-doors special meeting on Tuesday, called by the lord mayor, and not attended by the three councillors who opposed the workplace review.

The next day, Mr Reynolds was publicly spruiking the review as an essential “health check” on the organisation.

He denied the process was an attempt to “clear out” the current administration.

“A workplace committee is an imperative for any organisation, especially as important as the City of Perth,” he told journalists at a Wednesday press conference.

“That’s not a clearing out. This is something that will assist the actual city in a positive way.”

Council House, Perth.jpg

The City of Perth is in turmoil over a proposed $125,000 workplace culture review.  (ABC: Matthew Perkins)

But Ms Mabbs wrote on Thursday, hours after the council publicly confirmed her resignation, that she had no information from the lord mayor or any other councillor that justified the need for an “urgent and broad review of workplace culture”.

Instead, she revealed complaints had been received about some councillors.

“Concerns have been raised with the CEO regarding the psychosocial wellbeing and safety of some elected members, and some staff who work closely with them,” she said.

“In 2025, 10 complaints have been received from staff and elected members regarding the behaviour of elected members.”

Mystery over CEO’s resignation

The council confirmed on Wednesday afternoon that Ms Mabbs had resigned, but no reason was given.

Ms Mabbs was acting for CEO Michelle Reynolds, who took pre-approved personal leave on November 14.

A low angle looking up at the Council House building in Perth.

The offices of the Perth City Council. June 30, 2020. (ABC News: James Carmody)

Along with being acting CEO at the City of Perth, Ms Mabbs is the executive director of governance and strategy.

She also spent six years at the Corruption and Crime Commission (CCC), including a year as CEO. 

Ms Mabbs’s report on the City of Perth was based on advice from lawyer Neil Douglas from the law firm McLeods.

Mr Douglas has previously carried out inquiries into local government councils, including City of Cockburn, and was an acting commissioner of the CCC.

Minister ‘concerned’

On Thursday evening, Local Government Minister Hannah Beazley said she was “very concerned about the situation”.

A female politician wearing glasses at a press conference.

Hannah Beazley says she will intervene if necessary.  (ABC Perth: Courtney Withers)

“I have referred that to the department in order to provide me with some clarity and guidance as to what’s gone on and what needs to happen as next steps,” she said.

“I am always concerned when things like this happen in any local government.

“I think that I’ve proven when I’ve had the tools available to me to take decisive action, I’ve taken it, and I’ve proven that time and time again.”

The issue is expected to be discussed again at councillor briefing session on Tuesday.

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