Debt-ridden council suspended
The NSW Government has suspended the Central Coast Council and brought in administrators to deal with its $89 million debt.
Minister for Local Government, Shelley Hancock, has suspended the council for three months and appointed interim administrator, Dick Persson, to uncover the council's true financial position.
It comes after the State Government was forced to pay 2,000 council staff earlier this month.
Councillor Greg Best says there have been systemic failings at the council.
“We can all point fingers and [play] blame games, but at the end of the day we have got the single largest financial calamity in local government history,” Mr Best said.
The council had earlier made submissions to the State Government to fight the suspension.
IT said it was “still looking for the root cause” of its giant budget black hole.
An independent forensic audit is underway, and a council financial committee has initiated a 100-day recovery action plan.
Central Coast Council was formed by the amalgamation of Gosford and Wyong councils in 2016, leading staff numbers to increase.
Two Liberal councillors resigned ahead of the suspension, with former councillor Rebecca Gale having advocated for the appointment of an administrator.
“Once the public realise how grave the situation is, that's when the real test will begin,” she said.