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ABC News
a day ago
- Business
- ABC News
Shire of Coolgardie defies WA local government minister over proposed merger
A debt-laden outback council has threatened legal action to hold off a would-be merger with its larger neighbour. Local Government Minister Hannah Beazley rose in state parliament in June to slam "gross mismanagement" at the Shire of Coolgardie, which she described as a "financial mess" amid concerns about its ongoing viability. Council documents show the the shire owed creditors $2.8 million at June 30, while carrying debt of $27.5 million with just $2.9 million cash in the bank. Ms Beazley proposed a "boundary adjustment" with the neighbouring City of Kalgoorlie-Boulder, but has since been inundated with letters from ratepayers in both communities opposed to the merger. Coolgardie councillors on Monday endorsed a position paper detailing its fight to maintain its independence. The shire said it would "explore its legal position" should Ms Beazley force an amalgamation. Shire president Malcolm Cullen said the council wanted to work with the Department of Local Government over the next 12 months while trying to achieve financial and organisational stability. Mr Cullen and Kalgoorlie-Boulder Mayor Glenn Wilson were due to fly to Perth on Tuesday morning for another meeting with the minister after she told both councils to reach a joint position at a meeting last month. "The position that we will be taking to the meeting is basically to provide the shire more time to look at enacting a financial recovery plan that will return the shire to financial stability and also organisational stability for the future," Mr Cullen said. "Certainly, just request that there be a bit a little bit of breathing space so that both the Shire of Coolgardie and the city can work through a number of issues that have been identified in discussions so far." City of Kalgoorlie-Boulder councillors discussed the proposed boundary adjustment behind closed doors at Monday night's ordinary council meeting, where the council also endorsed its 2025-26 Budget. Mayor Glenn Wilson said a boundary adjustment was a legislative process which was different to an amalgamation or merger. He said the Shire of Coolgardie would be dissolved if the action went ahead. He said the council had been asked by the minister's office to keep its formal position confidential until after Tuesday's meeting. But Mr Wilson did concede there was little to be gained by taking on the Shire of Coolgardie's mountain of debt. "There has to be nothing that our residents pay for out of this … our residents and our community should not bear the brunt of others' debt," he said. The Shire of Coolgardie has already proposed the sale of a controversial workers' accommodation village in Kambalda, which was built in 2022 by the council to take advantage of the Goldfields' most recent mining boom. The 328-room Bluebush Village was last valued in March in the range of $16.4 million to $19.4 million. Occupancy rates were as low as 25 per cent earlier this year. The shire said it planned to advertise Bluebush Village for sale by public tender from next month, evaluate offers in November and make a final decision on a proposed transaction in January. Mr Cullen said early estimates suggested the sale would lower debt to manageable levels. "It's in the ballpark, it's a ballpark figure," he said. Residents of both the Shire of Coolgardie and City of Kalgoorlie-Boulder have voiced their opposition to the merger in letters to the minister's office. Kambalda real estate agent Cheryl Davis requested the minister delay a decision until the shire's financial situation was properly assessed. She said the shire was making positive strides in operational improvement and renewed community engagement. "These early signs of progress are encouraging, and we believe the shire should be given a fair opportunity to continue this momentum without the added pressure of structural changes at this time," Ms Davis said. Kalgoorlie business owner Greg Bowden told the minister it would be "unfair and impractical" to expect the City of Kalgoorlie-Boulder to take on responsibility for another local government while dealing with "its own internal challenges". "The risk of further instability and long-term financial pressure on both communities is real if this is rushed," he said. Fellow Kalgoorlie business owner John Bruce was concerned an amalgamation would place an "unfair and unsustainable burden" on ratepayers and businesses in Kalgoorlie-Boulder. "Our city should not be expected to absorb the consequences of long-term mismanagement, nor take on liabilities and debt accumulated by another local government without adequate assessment and consultation." Coolgardie RSL sub-branch secretary Ann Meagher told the minister Coolgardie was "more than just a dot on the map". "We have weathered storms before, and while we acknowledge the current challenges faced by the shire, we truly believe there is still time and opportunity to turn things around," she wrote. The Parents and Citizen Association at Coolgardie Primary School also wrote to the minister with an urgent request to delay any boundary changes. "We are considering the children of Coolgardie and the impact amalgamating with Kalgoorlie will cause," Coolgardie P&C president Coriana Boothey said. "It is a major concern that as a small community and small school that we will be left behind and not receive the support we are in need of."
The Australian
02-07-2025
- Business
- The Australian
Western Australia's Shire of Coolgardie faces uncertain future following audit report, ‘significant doubt' on viability
A 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. A Senior Project Officer employed by the council had been reportedly working remotely from the Caribbean island of Montserrat, the audit found. Picture: Visit 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 regional council faces allegations of 'potential cultural issues'. Picture: Coolgardie Visitors Centre 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. Malcolm Cullen, President of the Shire of Coolgardie, said it was too early to discuss a potential merger due to how close the council elections were. Picture: Supplied '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.' Brendan Kearns Cadet Journalist Brendan Kearns is a cadet journalist with News Corp Australia. He has written for The Australian, the Herald Sun, the Geelong Advertiser, CHOICE, Cosmos, and The Citizen. He won Democracy's Watchdogs' Student Award for Investigative Journalism 2024 and hosted the third season of award-winning podcast Uncurated. He studied as Master of Journalism at The University of Melbourne, before that he worked as a video producer and disability worker. @brendandkearns Brendan Kearns
News.com.au
02-07-2025
- Business
- News.com.au
‘Significant doubt': Entire Aussie council in jeopardy after damning audit finds workers unfairly dismissed, one working in Caribbean
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.'
ABC News
02-07-2025
- Business
- ABC News
Auditor-General's report casts 'significant doubt' on Shire of Coolgardie's viability
An outback shire unfairly dismissed two staff, used restricted funds to cover shortfalls and improperly employed a man working remotely from a Carribean island, Western Australia's government watchdog has found. Those are just some of the issues identified by a comprehensive audit of the Shire of Coolgardie by the office of WA's Auditor-General, casting significant doubt on the small council's future. The audit found that a former employee who questioned former chief executive James Trail about whether he was manipulating the council's tender processes was one of two people involved in unfair dismissal claims that were settled by the shire for a combined $150,000. The audit, which covers the 2023-24 financial year, also alleges the council's purchasing policies were not followed in regard to a $1-million housing project. It also revealed that a charter airline that sued for $214,203 had no formal agreement with the council. The audit confirmed the shire was in dire financial straits months before Mr Trail was suspended on November 14, which eventually led to his resignation on April 17. The shire's chief financial officer was also suspended on November 6. An investigation by external consultants is ongoing. The audit revealed that a senior project officer employed by the Shire of Coolgardie from October 2023 to October 2024 was working remotely from the Caribbean island of Montserrat. The audit found the recruitment was directly undertaken by the ex-chief executive, bypassing the shire's recruitment and selection policy. The staff member, who was not named, was also in breach of a 417 working holiday visa. "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 audit stated. "Additionally, we noted that the staff member is currently working for the government of Montserrat. The audit stated that the employment contract was terminated on October 2, 2024, but the laptop provided to the staff member had not been recovered. The audit was publicly released by the shire this week after being referenced in state parliament by Local Government Minister Hannah Beazley, who declared "shocking mismanagement" had left the council in a "financial mess". The audit – certified by the Auditor-General's senior director of financial audit Tim Sanya – showed the shire incurred a net loss of $4.6 million for the 12 months to June 30, 2024. It found the council's liabilities exceeded its asset base by $14.2m and that there was $4.8m in overdue payments to vendors. "These conditions indicate a material uncertainty that may cast significant doubt about the ability of the shire to continue as a going concern," the audit said. The audit prompted Ms Beazley to hold a meeting on Monday with Kalgoorlie MLA Ali Kent and the Shire of Coolgardie about a potential merger with the neighbouring City of Kalgoorlie-Boulder. "It was a really productive meeting … the beginning of those discussions," Ms Beazley told the ABC, using the term "boundary adjustment" rather than "amalgamation". Coolgardie Shire President Malcolm Cullen said the minister's ultimatum came too close to this year's 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. "Such a decision deserves careful consideration and should not be made at a time of transition." In a statement, the City of Kalgoorlie-Boulder said Mayor Glenn Wilson and chief executive Andrew Brien would brief councillors on the meeting's outcomes on Wednesday. It declined to comment further. Three modular houses built by the Shire of Coolgardie in Kambalda also raised red flags. The units were constructed for government regional officer housing (GROH) amid Kambalda's struggle to attract police and teachers. The audit found the shire did not undertake any tender process, which was in breach of its purchase policy applied to contracts in excess of $250,000. A $1m loan from the Commonwealth Bank was obtained in the 2022-23 financial year for the works, but the funds were not used for the purpose they were obtained for, the audit stated. As of June 30, 2024 invoices totalling $965,151 were overdue to Modular Proprietary Limited for the construction of the houses. The audit also found there was no formal agreement between the shire and Casair Proprietary Limited, which operated private charter flights into Kambalda. Casair filed a writ last year for $214,203 for incorrect fees and charges. In February shire councillors unanimously agreed to make repayments at a rate of $6.60 per passenger over the next 12 months in order to ensure both parties regained "trust and a working relationship". In the long-delayed 2023-24 annual report, which was released alongside the audit, Mr Cullen noted the "less-than-desirable closing balance". He agreed "wholeheartedly with community sentiment that these results are extremely disappointing".
ABC News
26-06-2025
- Business
- ABC News
WA local government minister suggests merger for Kalgoorlie-Boulder, Coolgardie councils
Western Australia's local government minister has put council mergers back on the agenda, suggesting the unification of a trouble-plagued Goldfields council with its much larger regional neighbour. Hannah Beazley made the comments in state parliament on Thursday, suggesting the combination of the City of Kalgoorlie-Boulder and Shire of Coolgardie — both about 600 kilometres east of Perth — could be a solution to the latter's significant financial and governance issues. The potential amalgamation of the Shire of Coolgardie and the City of Kalgoorlie-Boulder has been mooted for decades, while broader proposals to reduce WA's 139 councils have a similar history. Ms Beazley rebuffed the Shire of Coolgardie earlier this month when it attempted to hike mining rates by 97 per cent to address a $6.5 million budget deficit. In state parliament on Thursday, Ms Beazley said "shocking mismanagement" had resulted in questions about the Shire of Coolgardie's ongoing financial viability, describing the council as a "financial mess". "I will take prompt action and have arranged a meeting with representatives of the Shire of Coolgardie, the City of Kalgoorlie-Boulder and the local member [Labor MP Ali Kent], to address the serious concerns in relation to the financial viability of the Shire," she told parliament. "While I am assured that no malice was 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 their community and region and be cooperative in speaking with their neighbouring council at Kalgoorlie-Boulder and jointly support a boundary adjustment." Kalgoorlie MLA Ali Kent said she hoped both councils would be supportive of the proposal. "It's a different thing that I believe Colin Barnett put into the act some time ago. A boundary readjustment is just basically redrawing where the boundary goes out to," she said. "Surely the future of the region is far more critical than what a line on the map is. "There's obviously a lot of work and a lot of detail that will need to go into the boundary readjustment." The ABC has contacted both Kalgoorlie-Boulder Mayor Glenn Wilson and Shire of Coolgardie President Malcolm Cullen for comment. A merger of the neighbouring shires — founded on the discovery of gold at Coolgardie in 1892 and at Kalgoorlie in 1893 — would create one of the physically largest local governments in WA. The Shire of Coolgardie covers 30,400 square kilometres and has about 3,600 people living in the towns of Coolgardie, Kambalda, Widgiemooltha and the Aboriginal community of Kurrawang. The City of Kalgoorlie-Boulder is significantly larger in both land mass and population, responsible for an area covering 95,575 square kilometres and about 30,000 residents. It was created out of the 1989 merger of the Town of Kalgoorlie and the Shire of Boulder. A review of the Local Government Act in 2020 sparked renewed calls for councils to consider mergers to be sustainable into the future. There has been some reluctance in the past, with the proposed merger of the shires of Westonia and Yilgarn in WA's Wheatbelt voted down by ratepayers in 2012. Some councils have been successfully merged, like in the state's Midwest, where the City of Greater-Geraldton was created following its 2011 amalgamation with the Shire of Mullewa. That followed City of Geraldton's prior amalgamation with the Shire of Greenough in 2007. The potential amalgamation comes after Shire of Coolgardie councillors this week agreed to put a controversial mining camp on the market to address its dire financial situation. The council built the 328-room Bluebush Village in Kambalda to take advantage of the Goldfields' latest mining boom. Figures provided by the Shire of Coolgardie to the ABC confirmed the initial budget for Bluebush Village blew out from $9 million to more than $24.5 million. The workers' accommodation opened in late 2022 but had lower-than-expected occupancy rates following the demise of WA's once-booming nickel industry. Shire president Malcolm Cullen said the first step in the sale process was for acting CEO Aaron Cook to prepare a report detailing the requirements for a major land transaction, with cost estimates and timeframes. "It's a process that we promised the community we would look into, and we are definitely going down that path," Mr Cullen told the ABC on Wednesday. "It is a great facility and we feel it does create a significant economic benefit for the community of Kambalda being in the middle of the town."
