The Office of Local Government is investigating decisions by Cootamundra-Gundagai’s general manager that were unapproved by councillors and which could cost ratepayers almost $1 million.
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Councillors learned last week via a budget review that had spent $700,000 for a refurbishment of Cootamundra Civic Centre and $25,000 for a tractor without their approval.
Acting general manager Phil McMurray said council’s general manager at the time, Allen Dwyer, had approved both spending decisions.
Mr Dwyer was this month suspended with pay following claims that Mr Dwyer had used council credit cards for cash advances during his previous employment at Hay Shire.
Councillors will now likely have to support the use of additional ratepayer funds to complete the Cootamundra centre’s refurbishment.
Mr McMurray said the additional costs were “estimated at $250,000”.
“An independent audit is being conducted by Blackadder Associates (and) is due for completion by the end of this week,” he said.
“The Office of Local Government is conducting a preliminary investigation into the expenditure of the merger implementation funds, specifically related to expenditure on the Cootamundra Administration Building.”
Mr McMurray said the refurbishment was not within the council’s delegation of authority policy and ”various local contractors were involved” in carrying out the civic centre works.
Mayor Abb McAlister said during Tuesday’s council meeting that he was “disappointed” with the unapproved spending.
Cr Gil Kelly has asked council staff for answers as to whether developer applications related to the works were submitted.