Whittlesea council has disputed the findings of a report by Victoria’s municipal watchdog into funds given to councillors to distribute at their discretion.
Local Government Minister Jeanette Powell released the Local Government Investigations and Compliance Inspectorate’s year-long Review of Councillor Discretionary Funds report last week.
“The investigation found that some ward funds expose councils and councillors to unnecessary risks, including potential breaches of the Local Government Act,” Mrs Powell said, adding that she would consider amending legislation to abolish or put tighter controls on such practices.
Councils were found to have a variety of arrangement for such funds, which are usually used to distribute small grants of between $100 and $5000 to local clubs, groups and service organisations.
In some municipalities, councillors are given sums to allocate around their wards; in others, funds are allocated by the mayor of the day.
In the case of Whittlesea council, the report found payments had been made to an organisation where a councillor sat on its board in a voluntary capacity.
“The councillor in question declared a conflict of interest in accordance with the Act, but the payment had already been made,” the report noted.
The report also claimed the council approved funds for councillors to distribute on the first day of its caretaker mode prior to elections last year.
Whittlesea’s acting director of governance and economic development, Michael Tonta, told the Weekly he would like to correct two ‘‘apparent errors’’ in references to the City of Whittlesea.
“At the council meeting of September 25, 2012, council considered a report on the distribution of funds under the mayoral charitable fund,” he said.
“The report sought endorsement for prior distribution of $4750, as well as a resolution to make further funding available to a number of organisations, which was done so in accordance with the Local Government Act.
“Payment of the funds in question was not already made. Payment was made after council’s resolution.”
Mr Tonta also disputed that the council had decided on fund allocations after the deadline for caretaker mode had passed.
“The caretaker election period began at midnight on Tuesday, 25 September, 2012, and, therefore, all matters passed at the City of Whittlesea’s ordinary council meeting were prior to the election caretaker period commencing,” Mr Tonta said.
“Current practice is that all allocation of funds from the Mayoral Charitable Fund occurs only with a resolution of council.”
Mrs Powell has called into question the long-standing practice of councillor discretionary funds.
“Council funds are for the benefit of the whole community and it is not the role of individual councillors to hand out public money to community groups at their sole discretion,” she said.
