The Victorian Local Government Inspectorate has comprehensively failed the citizens of the Hepburn Shire through its failure to release its report on the mismanagement of the purchase of The Rex and associated events.
July 23, 2024 was the fifth anniversary of the first visit of the Local Government Inspectorate (LGI) to Daylesford as part of its investigation into “The Rex” project. That is 1827 days and counting!
Hepburn Shire Council purchased The Rex for $6 million in 2016 with the purpose of renovating it to become a community hub including Council offices, a library, a cinema and public toilets. The project was halted when renovation costs blew out beyond the original estimate of $1 million and allegations were made of mismanagement and possible corruption. The project was eventually abandoned after expenditure of $3.4 million when costs to complete the project were projected to be $8.7 million.
There were concerns about the original valuation and purchase price of the Rex, probity concerns about related land purchases at Bleakley Street and Main Road and the management of the contracts and building works for The Rex renovation. These were the issues investigated by the LGI.
Following massive cost blow outs and contract mismanagement, the Rex was eventually sold by Council as a “building shell” in 2023 for a net loss of $5.7 million.
The Rex debacle has put enormous strain on the Hepburn Shire’s financial position and severely impacted the town of Daylesford. It also has cast a shadow over three terms of Shire councillors and council officers.
Despite numerous requests from the Wombat Post, Council and the community in general, the Local Government Inspectorate has refused to release any findings. Requests to the local member and Minister for Health, Mary-Anne Thomas, and other ministers have had no effect.
The Local Government Inspectorate lists its purpose “to provide Parliament and the people of Victoria with independent assurance that the bodies we oversee act lawfully, properly and with integrity”. No such assurance is possible if they act in secrecy.
It is now the Wombat Post’s understanding that the LGI and the state government have determined not to release the report.
Drafts of the report have been circulated and leaked, but there has been no explanation about why the report has not been publicly released other than the scarcely believable excuse that the investigation is incomplete.
The issue is of concern well beyond the boundaries of Hepburn Shire. In a recent article from the ABC, the Municipal Association of Victoria says the long delay meant the purpose of the integrity unit was jeopardised.
Wombat Post has again contacted the Local Government Inspectorate, the Minister for Local Government, the Attorney General and local member Mary-Anne Thomas.
The only reply we have received was from Mary-Anne Thomas who stated that “The purchase of The Rex and other matters relating to the project, remain under investigation by the Inspectorate, and decisions relating to the investigation are a matter for them.”
The Shadow Minister for Local Government, Peter Walsh, and the Shadow Attorney General, Michael O’Brien, have indicated that they will look into the matter further when the Victorian Parliament resumes.
The community deserves answers about how the mismanagement of the Rex project occurred, whether there has been corruption and whether those who were responsible have been held accountable.
Related Stories:
Council Declares $5.7 Million Loss on the Rex
