Wollongong Council in Administrator World : 2008-2012

Back in April 2002 WCC had been embroiled in controversy between then Lord Mayor George Harrison & GM Rod Oxley, culminating in an Organisational culture review reported to WCC in April 2003. The review included recommendations based on a Human Synergistics approach which had proved successful at Fairfield Council. Regrettably not all of the recommendations were acted upon.

Nevertheless in November 2006, the NSW Department of Local Government issued its review report into Wollongong Council, which had included site visits to the Council in May 2006 by its officers John Davies, Wendy Forrester & Carole Medcalf (possibly the same Carole Medcalfe who contested the Federal Seat of Cunningham for the Greens in 1993 & now Corporate & Community Services Director of Walgett Shire Council?). It made quite a number of recommendations, but significantly it stated on page 36 of the report that "Council has a rigorous and comprehensive internal audit program" and on page 80 "Council has successfully adopted measures to minimise DA turnaround times and improve consultation practices".

The following month, on 5 December 2006 , WCC offices were raided by ICAC officers assisted by police officers. It would later emerge that the matters being investigated would go back over two years, ie from around mid 2004. In turn the raid was followed on January 17 2007, with Rod Oxley's announcement of his resignation, leaving Wollongong City Council on May 31 2007. Prior to his departure, allegations had been put to him by a council officer of an alleged bribe. This was also investigated by ICAC, and reported in its December 2007 report, in which the former WCC GM was criticised for failing to notify ICAC earlier regarding the alleged bribe. He has sought to vigorously defend himself regarding implications arising from evidence heard in the 2008 ICAC hearings. Currently he is a Director at AHM, (where he sits on the Audit & Risk Management Committee and Governance Committee) amongst others.

Former Cairns Council CEO, David Farmer, replaced Rod Oxley as CEO of WCC, and before the end of June 2007 he had terminated a townplanners contract, arising from the ICAC investigations. On February 5 2008, the ICAC public hearing was announced to commence on February 18 2008, and, explosively, various people were named by ICAC as being called to give evidence. By the end of the first day's ICAC hearing, more current and ex WCC identities had been named , ie whose conduct was reported by Counsel (Noel Hemmings) assisting the ICAC hearing, as having appeared to warrant scrutiny - including 2 current councillors and 2 former WCC planning managers. By the end of the hearing another 2 current councillors would be named.

On March 4 2008 Wollongong's elected councillors were dismissed by NSW Local Government Minister Paul Lynch on recommendation of ICAC Commissioner Cripps investigating corruption at WCC . ACT Team member & NC6 Convenor Len Fares had for some years been raising concerns about WCC issuing consents allowing higher and denser development in Wollongong city. Four ALP councillors were investigated along with a former WCC manager (also an ALP member), as well as a number of other persons, including developers. (See ICAC Report Part 2.

Note - In 2005, former ALP Rockdale City Council Deputy Mayor, Councillor Adam McCormic was convicted of soliciting bribes and lying to the Independent Commission against Corruption (ICAC) in 2002, when he also controversially donned the mayoral chains after having been recommended for prosecution on corruption charges. The District Court heard Adam McCormick planned to receive $70,000 in bribes in return for delivering Labor Party support for a development application. He was later sentenced to a maximum of five years in gaol, with a non-parole period of three years. Rockdale Liberal Councillor Andrew Smyrnis had earlier been convicted and sentenced to two years weekend detention in late 2004 for related offences

This series of events at WCC has led to NSW ALP State Government Minister for Local Government - Paul Lynch - announcing changes with respect to election funding and code of conduct review committees.

Various groups have formed during this chaotic period - including Wollongong Against Corruption who are developing a good governance charter & Reform Wollongong Council.

Governance resources :

Australian Public Sector Anti-Corruption Conference / Local Government Elected Officials - Roles & Responsibilities

NSW DLG, Victorian / South Australian approach / discussion paper / LGMA discussion paper, Queensland powerpoint presentation.

Reform of Local Government in NSW , in particular financial sustainability issues ( Allan Inquiry) - see WCC Response wrt costshifting), has been on the State Government's agenda for some time, although it seems to have been overshadowed by controversies at individual local councils.

Ultimately confidence in at Wollongong Council had been eroded by the events aired during the ICAC Public Hearings in February-March 2008. Controversially, NSW Local Government Minister Paul Lynch appointed 3 Administrators, Gellatly, Kibble & McGregor, to run WCC in place of an elected council until the 2012 Local Government elections.

Living in an Administrator World