• Perth CEO Michelle Reynolds has been on extended leave.
THE City of Perth is facing another formal inquiry into its governance just weeks after councillors deferred a confidential attempt to bring suspended CEO Michelle Reynolds back to work.
Local Government Inspector Tony Brown announced the inquiry on Tuesday, following a six-month monitoring process by former Kwinana mayor Carol Adams.
Mr Brown told councillors at a closed meeting on Monday that the inquiry would examine governance, decision-making, accountability and the effective functioning of council.
It will specifically examine compliance with confidentiality obligations, difficulties with collaborative decision-making and other conduct that could adversely affect good governance.
The inquiry begins on September 21 and is expected to take three months, with a public report due early next year. The Inspector has also identified 12 remedial actions arising from Ms Adams’ monitoring report, which the City is expected to undertake while the inquiry proceeds.
Mr Brown said: “By building on the significant work already undertaken through the monitoring process, the inquiry will determine, in an efficient and cost-effective manner, whether further action is needed to strengthen governance, accountability and public confidence in the City of Perth.”
The development follows months of turmoil around the relationship between elected members and the administration, including the treatment of Ms Reynolds.
An independent psychosocial risk assessment released in January found the relationship between council and management was in “crisis”, with trust between Ms Reynolds and Lord Mayor Bruce Reynolds having eroded. The report also identified factional dynamics and ineffective accountability systems.
Ms Reynolds was subsequently placed on leave following a confidential council process in May, after Mr Brown had put the council on notice over its governance.
The issue remained unresolved at the August 25 council meeting.
Councillor Catherine Lezer had lodged a confidential notice of motion concerning Ms Reynolds. The substance of the motion was not publicly released, but media reports said it sought to have the CEO return from leave “effective immediately”.
Before the matter could be substantively considered, Councillor Liam Gobbert moved that consideration be deferred until the workplace investigation had concluded and options could be presented to council.
Councillor Chris Patton seconded the motion, which passed 5-1, with Lord Mayor Bruce Reynolds, Deputy Lord Mayor David Goncalves, Mr Gobbert, Mr Patton and Councillor Lisa Ma voting for the deferral. Ms Lezer was the only councillor to vote against it.
Councillors Raj Doshi and Adam Pacan were absent.
The decision did not determine whether Ms Reynolds should return to work; it postponed consideration until the workplace investigation is complete.
The meeting also revealed that Mr Goncalves and Mr Gobbert had received correspondence from representatives of Ms Reynolds, while Mr Gobbert had received briefings from City officers and an external firm engaged by the City. Neither the councillors nor the City disclosed the substance of the correspondence or briefings.
The Reynolds dispute followed an earlier battle over a proposed workplace culture review, which ultimately led to Mr Brown’s intervention and the appointment of Ms Adams as monitor in January.
Ms Adams’ six-month appointment allowed her to observe council meetings, including closed sessions, inspect documents and review governance practices before reporting to Mr Brown. Her assignment was extended by two months and concluded on June 19.
Since January 1, 25 complaints involving elected members have also been referred to the Local Government Adjudicator, according to the State Government.
The City has said it will cooperate with the new inquiry.
Mr Brown said: “I expect the City of Perth to cooperate fully and complete the recommended 12 remedial actions from the Monitors report while the inquiry is underway.”
He added: “If the inquiry finds further action is required I will not hesitate.”
The inquiry has powers to require people associated with the City to attend interviews, answer questions and give evidence. Depending on its findings, Mr Brown can recommend that the council or an individual councillor be suspended or dismissed.
by STEVE GRANT