‘Significant doubt': Entire Aussie council in jeopardy after damning audit finds workers unfairly dismissed, one working in Caribbean

News.com.au

6 days ago

An regional council in Western Australia is staring down an uncertain future, after a report from the state's government watchdog expressed 'significant doubt' over the shire's ongoing viability.
The Shire of Coolgardie is under fire for 'shocking mismanagement and poor governance' amid revelations that employees were improperly dismissed and one contractor worked remotely from a Caribbean island.
The report, from WA's Auditor General, found the shire was in a precarious financial position after incurring a net loss of more than $4.6m in the year ending 30 June 2024.
Liabilities exceeded the council's assets by more than $14.2m.
'These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Shire to continue as a going concern,' the report states.
During the review, auditors found that a Senior Project Officer employed by the council from October 23, 2023 to October 2, 2024 had been working remotely from the Caribbean island of Montserrat.
'The Project Officer appeared to be located in Montserrat, a British Overseas Territory in the Caribbean,' the report read.
'The offer of employment stated that the duties were to be performed at home, in the office in Kalgoorlie, or Kambalda.
'We inquired but did not receive a response from Shire management on how the staff member performed their duties efficiently while being in a different jurisdiction with a 12-hour time difference from Perth.'
The staff member was also found not to be in compliance with their working holiday visa, which stipulated they could not work more than six months overseas.
The staff member was recruited directly by the Shire's former chief executive.
The review also found that the council had 'potential cultural issues' that stopped employees from raising concerns without facing the threat of termination from senior management.
Two former employees filed claims against the council for 'termination without cause' - one alleging that a senior executive appeared to be manipulating the tendering process for Shire projects in favour of certain tenderers.
WA's Local Government Minister Hannah Beazley spoke to the state parliament last week about the potential of merging the Coolgardie Shire with the neighbouring City of Kalgoorlie–Boulder.
She said she had arranged a meeting with representatives from both councils and the local member to address 'serious concerns about the financial viability of the shire'.
'Although I am assured that no malice has been intended by elected members, nevertheless, shocking mismanagement and poor governance has occurred at the shire.
'I would urge the shire to do what is right for its community and region and be cooperative in speaking with its neighbouring council at Kalgoorlie–Boulder and jointly support a boundary adjustment.'
Local member Ali Kent also spoke in parliament, and noted previous scrutiny faced by the council over financial mismanagement.
'So many of my constituents have met with me as they are upset and concerned about the future of the shire when it is faced with this ongoing uncertainty,' Ms Kent said.
The Coolgardie Shire's President Malcolm Cullen told the ABC that the announcement of a potential merger had come to close to council elections.
'The three-week time-frame for these discussions provided by the minister does not allow time for genuine and open negotiations,' Mr Cullen said in a statement reported by the ABC.
'Such a decision deserves careful consideration and should not be made at a time of transition.'