Queensland’s corruption watchdog has some suggestions for councils.

The state’s Crime and Corruption Commission (CCC) recently tabled a report following the completion of its investigation into Ipswich City Council.

The investigation resulted in 15 people being charged with 86 criminal offences. Of the 15 people charged, seven are either current or former council employees or councillors. This includes two mayors, two CEOs and one Chief Operating Officer.

The entire council has since been sacked.

The CCC’s report outlines broader corruption risks from governance failures and cultural issues in local government.

The CCC made several recommendations to address these corruption risks across the broader local government sector:

  • That the Department of Local Government Racing and Multicultural Affairs provide information and/or training to inform councillors of their rights and responsibilities as councillors, including in areas such as governance and financial literacy
  • That a minimum set of standards for policies and procedures and monitoring compliance be established for areas identified as high risk for councils, with input from the Department of Local Government Racing and Multicultural Affairs, the CCC, the Queensland Audit Office and any other relevant stakeholders
  • That the Department of Local Government Racing and Multicultural Affairs examines the need for councils to continue to utilise controlled entities, and review the beneficial enterprise provisions in the Local Government Act 2009 and City of Brisbane Act 2010. The review should look at further controls and regulation to ensure that controlled entities do not expose the council to greater risks of corruption
  • That councils’ controlled entities should be deemed to be units of public administration, bringing these entities within the oversight of the CCC and also subjecting them to the Right to Information Act 2009
  • That the Local Government Advisory Group include a prohibition on the use of private email accounts when conducting official business in the councillors’ code of conduct. In addition, the report suggests that individual councils should introduce a local law supported by appropriate policy and procedure which applies to councillors and employees to prohibit the use of private email accounts for the purpose of conducting official business

Local Government Association of Queensland (LGAQ) President and Sunshine Coast Council Mayor Mark Jamieson said the LGAQ supported many of the recommendations made by the CCC, including restrictions on the use of private email accounts to conduct council business.

“Without a doubt, we agree with the CCC that certain policy and procedural reforms for local government are needed,” he said.

“Councils are keenly aware that they should be seen to meet the community’s expectations regarding openness, accountability and transparency.”

The LGAQ has however, cautioned the Palaszczuk Government against moving to restrict the use of controlled entities by local councils to do business on behalf of their communities.

The LGAQ has told the Government that controlled entities – when established with sound governance arrangements in place – can (and do) conduct their business activities in a manner that serves the public interest.

“The findings against one council should not be used to force unwieldy and unnecessary restrictions on the entire local government sector,” Mayor Jamieson said.

“Councils that use controlled entities appropriately, do so in the best interests of the communities they represent.”

Mayor Jamieson said the LGAQ agreed that elected councillors should not sit on the boards of controlled entities but would oppose excessive restrictions.

“We believe the standards of behaviour, transparency and accountability expected of local government should be the same as those applied to the State Government.”

“It is in that spirit that we will work with the Government to chart the best way forward for local councils in Queensland.”