The release of a document some Latrobe City councillors fought to keep secret has revealed a warning by the local government watchdog to two councillors about possible bias.
The audit of council’s handling of the Moe railway revitalisation project found there were shortcomings in governance.
But the Local Government Investigations and Compliance Inspectorate found those shortcomings did not constitute a breach of the Local Government Act.
The inspectorate stated concerns “certain members of council could be creating a public perception of apprehended bias in relation to the [Moe] projects”.
It was referring to crs Peter Gibbons and Sharon Gibson and the views they held about the project prior to becoming councillors.
The audit stated the councillors had actively campaigned against the railway revitalisation and broader council plans to improve the town’s central business district when they were members of the Moe and District Residents Association.
They have not been members of the group since being elected to council.
However the audit also raised concerns an objection to the projects lodged earlier this year by Cr Gibbons’ wife Cheryl Wragg, a former office bearer of MADRA, had been sent using her husband’s email address.
The audit also found Cr Gibson had, prior to becoming a councillor, taken council to the Victorian Civil and Administrative Tribunal over the relocation of the Moe Library from Kirk Street to the George Street rail precinct, which is a component of the revitalisation project.
It also raised concerns that at a meeting on 25 March, when the project was adopted by council, Cr Gibson abstained from voting, the reasons for which were unclear.
The review found while Cr Gibson’s failure to vote did not constitute an offence under the Act, she failed in her duty as chair of the meeting.
Cr Gibson has previously told The Express her failure to vote was unintentional.
“All councillors should be mindful that their publicly stated positions regarding the [projects] may give rise to an apprehended bias regarding this matter,” the audit stated.
Apprehended bias refers to the public’s perception that a councillor has not made decisions with a genuinely open mind.
“The failure of one councillor to bring an open mind to an administrative decision-making process, or a public perception of bias on the part of one member of council can put the lawfulness of a decision at risk even if all other councillors who took part in the decision were free of bias,” the report stated.
The audit warned this could be sufficient evidence for a court to find that “the whole decision-making process was unlawful”.
Another key finding of the audit surrounded the so-far four contracts entered into as part of the Moe project.
It found in the case of all four tenders, council had not provided evidence that it had conducted a background check on the successful tendee.
In two of the tenders, conflict of interest declarations were not completed by the tender evaluation panel, the report found.
The audit was prompted by submissions council had received questioning its handling of the Moe project since its inception.
Concerns raised by submitters included council’s handling of a request by Tanjil Place Medical Centre to acquire the current Moe library building on Kirk Street, along with council’s community consultation process.
The report states on 6 March Latrobe City chief executive Paul Buckley wrote to the inspectorate requesting it conduct a review of council’s handling of the Moe railway revitalisation project and activity centre plan.
The audit found council staff made decisions in accordance with what they were permitted to do and all matters which needed to go to council for approval did.
It stated there was appropriate community consultation and council had acted appropriately in all its dealings with Tanjil Place Medical.
The push to bring the report into the public domain was led by crs Darrell White, Graeme Middlemiss and Kellie O’Callaghan and on Monday night gained majority support with backing from Cr Christine Sindt.
To download the report go to www.latrobe.vic.gov.au/About_Council/Major_Projects/Moe_Rail_Precinct_Revitalisation_Project
