The NSW Government has launched a crackdown on council use of credit cards in response to allegations that have snared both Hay Shire and Cootamundra-Gundagai Regional councils.
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Cootamundra-Gundagai councilors voted on Thursday to suspend general manager Allen Dwyer with pay pending the outcome of an independent investigation into his credit card usage.
It has been claimed that Mr Dwyer, while working for Hay Shire, spent more than $500,000 on a corporate credit card and cash advances.
Local Government Minister Gabrielle Upton said she had serious concerns about receipts not being available for ratepayer funds.
“I am taking action to get to the bottom of the matter to ensure it doesn’t happen in another council,” Ms Upton said.
“Councils must ensure they account for each and every ratepayer dollar.”
Ms Upton has requested that the Office of Local Government launch a formal investigation into Hay Shire Council’s credit card expenditure and accounting practices
Every council in NSW will now need to have an audit, risk and improvement committee.
Ms Upton has asked the NSW Auditor-General to begin a statewide performance audit of credit card usage at councils.
Councils will also be required to update their contracts and guidelines for the appointment of general managers to strengthen rules on their credit card usage.
In a statement, Cootamundra-Gundagai mayor Abb McAlister said “anything less” than an independent audit of Mr Dwyer’s spending since joining the council “would amount to poor corporate governance practices”.
“While there are no allegations whatsoever that similar issues have arisen during Mr Dwyer's employment with our council, our councillors are unanimously of the opinion that there needs to be an independent confirmation that our council's financial records,” he said.
“This is not a presumption of wrongdoing but a prudent corporate governance step.”