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"Flawed Budget Setting & Conflict of Interest" PDF Print E-mail
Thursday, 29 May 2008
The Sunshine Residents and Ratepayers Association recently wrote to The Hon Richard Wynne, Minister for Local Government, demanding that he authorise the Municipal Inspector to investigate alleged conflict of interest, breaches of the Local Government Act and breaches of Brimbank’s Councillor Code of Governance.

SunRRA is demanding the Minister conduct

a) an expert independent investigation into an alleged breach of the Brimbank Councillor Code of Governance 2006 and the Local Government Act 1989 by Brimbank Mayor and Harvester Ward Councillor Mr. Sam David and,

b) an expert independent investigation into the adequacy and quality of Brimbank Council’s 08/09 budget and priority setting processes in conjunction with the Brimbank Council CEO Nick Foa and the Municipal Association of Victoria, and

c) act against Brimbank Mayor and Harvester Ward Councillor Mr. Sam David or the Council should the expert independent investigations show he has acted outside the required legislation and codes.


Sunshine residents and ratepayers are outraged that the Mayor of Brimbank, Cr Sam David has acted against Council Officers' 2008-2009 Budget recommendations of more than $2.6 million for key strategic projects - for open space, playgrounds, walking tracks and numerous recipient sporting club upgrades - earmarked for the highly disadvantaged Harvester Ward.

Many of these projects have been in the capital works priority funding pipeline for up to 5 years or more, formed part of the first stage Open Space & Playground Strategy and would have provided Best Value to one of the city’s most disadvantaged populations.

Sunshine is the second most disadvantaged area in Melbourne according to the latest ABS statistics. Sunshine is part of the Harvester Ward which contains some of the most disadvantaged postcodes in Victoria. Harvester Ward has a scarcity of open space and is the Council’s most under provided Ward for parks and playgrounds. The health status of the community is also relatively poor compared to other communities both within and beyond Brimbank.


It has been reported in the local media that Mayor Sam David put forward a motion seconded by Cr Kathryn Eriksson to overturn Council Officers 08/09 budget recommendations in order to divert the $2.6M to the construction of a $1M soccer club pavilion and to forward the remaining funds to other factionally-aligned councillors' wards.

It has also been reported the particular soccer club recommended to receive the $1 million of redirected funds is the Soccer Club which Mayor Sam David is a life member of.

SunRRA alleges this is clearly a breach of the Local Government Act 1989 which states a Councillor with a Conflict of Interest must follow the Act and cannot move or second a motion on any question relating to the matter.

We submit 9.2.7 of the Brimbank Councillor Code of Governance states;

“The Councillor or member of the special committee may take part in the consideration or discussions but cannot move or second a motion on any question relating to the contract, proposed contract or other matter.”

As outlined in our letter to the Hon Richard Wynn Mayor Sam David is a ‘life member’ of the Soccer Club that is to benefit from the diverted funds and the project has not been properly evaluated and ranked for capital works priority funding previously. Meanwhile works that have been in the capital works priority funding pipeline for up to 5 years or more have been discarded.

The Mayor has effectively stopped the planned development of Harvester Ward’s major park – Buckingham Reserve located in Sunshine West – an asset for use by the whole community not just the members of a club in which he has a personal interest.

The Association submits the process undertaken is flawed and needs urgent rectification. It is noted Cr Sam David on a previous occasion excused himself from voting on another matter related to club, as reported in the local media in May 2007:

"Lifelong club member Cr Sam David left the chamber and did not vote on the report before council after declaring an interest in the club.

Cr David said that he thought it was appropriate for him not to join in.

“I just wanted to make sure that I declared an interest and that I did the right thing by the local law,” Cr David said after the council meeting"

SunRRA demands that strengthened policies and procedures be introduced to rectify Brimbank Council’s seriously flawed budget setting processes to protect this community from further abuse. The aim is to ensure budget decisions cannot be politically hijacked by factional Council representatives at the expense of Best Value projects for the whole community. Successive COuncil budgets have been framed so they cannot be compared from year to year.

SunRRA believes there are wider governance and accountability issues now coming to light at Brimbank Council that require urgent expert investigation if the community is to retain confidence that Best Value and Equal Opportunity are in fact legislative principles that are genuinely adhered to by Brimbank’s Councillors.

The Association is calling on the Minister to revoke the tabled proposal by Cr Sam David if the expert independent findings confirm a conflict of interest was not properly declared and that the “pet project” proposal was submitted illegally into the Council’s 08/09 budget process.

SunRRA also requests the Minister to advise the community the steps that will be taken to rectify a clearly flawed Council budget process, and to ensure budget decisions cannot be politically hijacked by factional Council representatives at the expense of attaining Best Value outcomes for the community in the future.

SunRRA believes Mayor Sam David has failed to properly declare an interest, failed his own Ward constituents, failed in his fiduciary duties to obtain Best Value for the residents and ratepayers he represents, and is not fit to continue to represent the Harvester Ward.

 
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