Key Takeaways:
- The Local Government Inspectorate (LGI) closed an investigation into the Hepburn Shire Council’s failed redevelopment of a Daylesford theatre without producing a final report.
- The investigation, which began in 2019, found insufficient evidence to prove any breaches of local government legislation, but the council had improved its procedures.
- The council had called for the release of the report, but the LGI determined it did not have the power to publish it under the Local Government Act 1989.
- The investigation’s outcome has raised questions about the LGI’s powers and effectiveness in holding local governments accountable.
- The Hepburn Shire Council suffered a $5.6 million loss on the project, which was initially estimated to cost $1.25 million.
Introduction to the Investigation
The Local Government Inspectorate (LGI) has closed a long and resource-intensive investigation into a botched major council project in Victoria without producing a final report on its findings. The investigation, which began in 2019, looked into the Hepburn Shire Council’s failed redevelopment of a Daylesford theatre under former CEO Aaron van Egmond. The project, which was initially estimated to cost $1.25 million, ultimately resulted in a $5.6 million loss for the council. Despite calls for transparency, the LGI has refused to release a final report, citing insufficient evidence to prove any breaches of local government legislation and improved procedures at the council.
The Failed Redevelopment Project
The Hepburn Shire Council’s vision for the project was to create a "modest, practical and sustainable" facility, known as the Hepburn Hub, which would refresh key services like the town’s library and council offices. However, the project was plagued by delays and mismanagement, and the council eventually abandoned it in 2022. The building was sold for $3.75 million, $2.6 million less than the council had paid for it. The council has conceded that the multi-million-dollar loss was "significant" for a small council. The project’s failure has raised questions about the council’s handling of the project and the LGI’s investigation into the matter.
The Investigation’s Outcome
The LGI’s investigation into the project found insufficient evidence to prove any breaches of local government legislation, but the council had improved its procedures. The watchdog issued a brief media release explaining the outcome, but refused to release a final report. The LGI has since revealed that a final report was never produced, despite creating two detailed drafts. The agency has cited confidentiality and legal privilege as reasons for not releasing the report. However, it is understood that the LGI determined it did not have the power to publish the report under the Local Government Act 1989.
Questions Over the LGI’s Powers
The investigation’s outcome has raised questions about the LGI’s powers and effectiveness in holding local governments accountable. The agency has faced criticism for its handling of the investigation, with some stakeholders speculating that it was "asleep at the wheel." The LGI has about 10 employees and has not published an annual report in three years. Its most recent available annual report noted that holding people to account for breaches of local government legislation continued to be one of its greatest challenges. The state government has passed local government reforms that provide the CMI with the power to table reports in parliament, brief ministers, and serve infringement notices, but it is unclear whether these reforms will address the LGI’s resourcing constraints.
Community Reaction
The investigation’s outcome has been met with disappointment and frustration from the community. The Daylesford cinema, a volunteer-run operation that was displaced by the project, is yet to welcome back audiences. Former president Gina Lyons and the entire committee resigned as the delays continued. Ms. Lyons has expressed her disappointment with the LGI’s handling of the investigation, saying it has made her question the agency’s purpose and value. The community deserves transparency about the investigation, and the LGI’s failure to provide it has eroded trust in the agency and the council.
Conclusion
The LGI’s investigation into the Hepburn Shire Council’s failed redevelopment of a Daylesford theatre has raised more questions than answers. The agency’s failure to produce a final report has eroded trust in the agency and the council, and has raised concerns about the LGI’s powers and effectiveness. The state government must review the LGI’s resourcing and powers to ensure that it can deliver its important functions efficiently and effectively. The community deserves transparency and accountability, and the LGI must prioritize these values in its investigations and decision-making processes.