Information Bulletin (Breaches of the LGA)

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INFORMATION BULLETIN

Breaches of the Local Government Act 2020

Warning to Councillors to Avoid Misuse of Position

Criminal Offence – Misuse of Position

It is an indictable offence under the Local Government Act 2020 (Vic) (“the Act”) for a Councillor to intentionally misuse their position, or to aid, abet, counsel or procure another Councillor to misuse their position.

A person who commits this offence may be liable to a penalty of up to 600 penalty units (currently $110,952) or imprisonment for up to five years.

Investigations into Misuse of Position

The Local Government Inspectorate (LGI) has recently investigated allegations of misuse of position involving former and current Councillors under both the Act and its predecessor, the Local Government Act 1989.

The allegations have included:

  • Councillors seeking legal advice purportedly on behalf of Council without a Council resolution authorising the procurement of legal services;
  • Attempts to misuse Council resources by seeking payment of invoices for unauthorised legal services;
  • Improper use of information acquired by virtue of a Councillor’s position in order to gain, or attempt to gain, a personal or other advantage; and
  • Participation in decisions where a conflict of interest existed.

Councillor Obligations

LGI reminds all Councillors that:

  1. Councillors must not intentionally misuse their position, including but not limited to:
    • Improper use of information acquired in their role;
    • Disclosure of confidential information;
    • Directing or improperly influencing Council staff, or attempting to do so;
    • Exercising or purporting to exercise powers not authorised;
    • Improper use of public funds or Council resources, or use without proper authorisation;
    • Participating in decisions where a conflict of interest exists.
  2. Councillors are democratically elected civic leaders and are held to a high standard of conduct. They must act with integrity and in the interests of the local community.
  3. Misuse of position constitutes an abuse of power and undermines good governance.
  4. Councillors must perform their role impartially and solely for the public benefit of the municipal district.
  5. In addition to the principles set out in section 28 of the Act, Councillors must comply with their Council’s adopted Councillor Code of Conduct.
  6. In relation to engaging legal services, Councillors have no authority to engage legal services on behalf of Council or to use Council resources unless:
    • A Council resolution authorises the procurement of legal advice; or
    • The service is engaged through an authorised member of Council staff (such as the Chief Executive Officer); or
    • The Councillor obtains legal advice privately and pays for it as a private client.

LGI encourages all Councillors to familiarise themselves with the offences prescribed by the Act. Relevant provisions are set out in the Annexure to this bulletin.

Prosecutions

LGI has previously prosecuted Councillors for misuse of position, including instances where Councillors:

  • Exceeded their authority by entering into contractual arrangements during a CEO appointment process without a Council resolution, where the arrangements were favourable to the CEO and exposed Council to financial risk; and
  • Improperly used confidential information concerning a proposed rating strategy to gain a commercial advantage in relation to properties personally owned by the Councillor.

Further Information

Further information is available from:

If you would like, I can also prepare:

  • A shorter version suitable for media distribution,
  • A version framed as a formal warning notice to a specific Council,
  • Or a legally assertive version for use in correspondence.

 

 

Below is the closest functional equivalent to Victoria’s Local Government Inspectorate (LGI) in each Australian State.
(Functions vary slightly between jurisdictions — some bodies investigate misconduct directly; others supervise councils and refer serious matters to anti-corruption agencies.)

Victoria

Local Government Inspectorate (LGI)

  • Investigates offences under the Local Government Act 2020 (Vic)
  • Can prosecute misuse of position and electoral offences
  • Refers serious corruption to IBAC

New South Wales

Office of Local Government (OLG)

  • Regulates councils under the Local Government Act 1993 (NSW)
  • Investigates misconduct and maladministration
  • Can issue performance improvement orders and recommend suspension

Serious corruption matters → ICAC (NSW)

Queensland

Office of the Independent Assessor (OIA)

  • Investigates councillor conduct under the Local Government Act 2009 (Qld)
  • Refers serious misconduct to the Councillor Conduct Tribunal

Corruption matters → Crime and Corruption Commission (CCC Qld)

Western Australia

Department of Local Government, Sport and Cultural Industries (DLGSC)

  • Investigates breaches under the Local Government Act 1995 (WA)
  • Can initiate prosecutions

Corruption matters → Corruption and Crime Commission (WA)

South Australia

Office for Local Government (within the Department for Housing and Urban Development)

  • Oversees compliance under the Local Government Act 1999 (SA)

Misconduct investigations may involve:

  • Local Government Governance Panel (conduct matters)
  • Independent Commission Against Corruption (ICAC SA) for corruption

Tasmania

Director of Local Government (Department of Premier and Cabinet)

  • Oversight under the Local Government Act 1993 (Tas)

Serious misconduct → Integrity Commission Tasmania

Australian Capital Territory

ACT does not have local councils (territory-level governance).

Northern Territory

Department of Chief Minister and Cabinet – Local Government Unit

  • Oversight under the Local Government Act 2019 (NT)

Corruption matters → Independent Commissioner Against Corruption (NT)

Summary Table

State Primary Local Government Regulator Corruption Body
VIC Local Government Inspectorate IBAC
NSW Office of Local Government ICAC
QLD Office of the Independent Assessor CCC
WA DLGSC CCC (WA)
SA Office for Local Government / Governance Panel ICAC
TAS Director of Local Government Integrity Commission
NT Local Government Unit ICAC (NT)

 

Last Updated 7 months ago

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Posted by Jillian