Barrier Daily Truth

Algate’s finance fears

Tuesday, 21st February, 2012

By Erica Visser 

Deputy Mayor Bob Algate has expressed fears that councillors may be sacked if finances do not improve soon.

The comments come after a document on Council’s finances, which was sent by the Division of Local Government on January 18, was leaked to local media outlets last week before all councillors had seen it.

The document expressed concerns that Council was in possible breach of a section of the Local Government act, had been in deficit for 11 years and had unfunded restrictions worth $6.24 million.

Cr Algate questioned Council General Manager Frank Zaknich and Mayor Wincen Cuy over the decision to withhold the document, which required an urgent response, for several weeks.

Six councillors who are part of Council’s finance committee, which was formed late last year, were made aware of the letter at a February 9 meeting.

Cr Algate said that there was “no reason” why councillors could not have been briefed about the letter at January’s monthly meeting.

“We were not given access to this information when we should’ve been and I don’t see any reason for the delay,” he said.

“Whilst I’m not responsible for the distribution of it, I don’t see anything wrong with it being out in the arena.

“When the warning was so stern councillors should have been made aware of it as soon as practically possible.”

Cr Algate said that despite “some of our worst fears being documented”, Council was not taking the situation seriously.

In June last year Cr Algate, along with Councillors Dave Gallagher and Tom Kennedy, had their names recorded as rejecting a deficit on the advice of financial experts.

He said yesterday the decision of the majority of councillors to accept the deficit was “coming back to bite us.”

“When the department tells council there could be a targeted financial review of Council that is something that doesn’t make me happy,” Cr Algate said.

“If you look at councils that have historically been sacked for whatever reason it is almost exclusively for financial mismanagement.

“There are some councillors that are not at all responsible...but personally I think there’s some councillors who still don’t think it’s such a bad situation - that is very worrying.

“At the very first meeting of the Audit and Finance Committee it was basically suggested by the management that there’s no real concern.

“At the end of the day when you look at those responsible it will be the councillors - if the Council is suspended the staff will maintain their jobs.

“I will be terribly disappointed if this council is targeted again.”

Mayor Cuy defended the decision to withhold the letter but expressed disappointment that some councillors had not had a chance to see it prior to the leak.

“The decision to firstly put it to the Audit Committee made the most sense,” Mayor Cuy said.

“The date that was on the letter...was the date that they sent it so it would have taken four or five days, or longer, to get here and then another two or three days to get through the system.”

Mayor Cuy also put forward the need for Mr Zaknich to go over the letter as a reason behind the delay.

“Also with the letter came the General Manager’s draft responses, so we went in with some prepared answers for the Audit and Finance Committee,” he said.

“The general manager needed to get answers to the questions that would be posed by the committee.”

The issue will be discussed at Council’s monthly meeting at the end of the month, after which a full response will be sent.