Liverpool City Council: 'Widespread dysfunction' prompts council shut-down move

One of Sydney’s largest and fastest-growing councils could be placed in the hands of an independent administrator after a probe revealed evidence of broad dysfunction.

The state government has ordered a public inquiry into Liverpool City Council and will move to postpone its September elections following an investigation into staff conflicts of interest and its general operations.

That probe identified issues “sufficient in seriousness and volume” to warrant the move, while Local Government Minister Ron Hoenig has also written to mayor Ned Mannoun to advise of his plan to suspend the council.

An interim administrator will be appointed to oversee its operations in place of elected representatives if the move goes ahead, with the council given seven days to respond.

An investigation report highlighted a string of issues, including problems with recruitment processes, procurement irregularities and widespread evidence of a toxic work environment.

There was also evidence of direct interference from the mayor and councillors in the assessment of developments and other activities, the government said.

“Communities expect their council to be operating with the highest level of integrity and in their best interests,” Mr Hoenig said on Thursday.

“It has become clear that is not the case at Liverpool City Council and there is major dysfunction across the entire organisation.”

Liverpool council covers a population of about 250,000 people in Sydney’s southwest and has been overseen by Liberal mayor Mr Mannoun since late 2021 after a previous four-year stint in the job that ended in 2016.

Its area includes swathes of land to be redeveloped for housing, offices and industrial use around the under-construction Western Sydney Airport.

The council has been contacted for comment.