The Local Government Inspectorate (LGI) today published a media release stating that their investigation into the Hepburn Hub at the Rex has been completed, that they have found insufficient evidence of any breaches of the Local Government Act and that they will not publish their long-awaited report into the fiasco.
Interim Chief Executive Officer, Bruce Lucas, paused the Hepburn Hub at The Rex project in June 2018 when the project budget blew out and amid concerns raised by the Shire’s Audit and Risk Committee. Incoming Chief Executive Officer, Evan King reported concerns to IBAC, and ultimately the Inspectorate commenced an investigation.
Council continued renovations of the site which was to house Shire offices, a library and public toilets. After negotiations with the local cinema group which had previously used the site, a small cinema was added to the plans.
Costs blew out further and the project was abandoned in December 2021. The site was later sold at an overall loss of $5.7 million.
Early stages of the project including the acquisition of the property and the council-owned properties which became part of the transfer were some of the issues investigated by the LGI.
A draft report by the LGI was circulated to individuals named in the report in late 2020. Despite repeated calls to release a final version of the report from Council, The Wombat Post, individuals and other media organisations, the LGI has steadfastly refused to provide any information. Individuals who received a draft copy of the report have been repeatedly warned about strict confidentiality provisions related to their access to the draft report.
The LGI have stated that “The LGI’s investigation has now been finalised and the Chief Municipal Inspector has concluded that there is insufficient evidence to prove to the requisite standard of proof the commission of any disciplinary breaches or criminal offences contrary to the 1989 Act. They have also noted that the “LGI will not be taking any further action in respect of the investigation, nor will the LGI be publishing a report.”
Mayor, Cr Brian Hood, said that it is extremely disappointing that it has taken so long for the Inspectorate to arrive at this decision .
“We are frustrated that a comprehensive, detailed report won’t be released. The failure to issue a report into The Rex project denies transparency and accountability and lets down the community, Councillors and Council officers,” said Cr Hood.
Bradley Thomas, Hepburn Shire Council CEO, said that it was important to note that the Chief Municipal Inspector has concluded that “council has taken remedial action to put in place measures to avoid future complaints of a similar nature, including the creation of a new governance and policy framework.”
“We have significantly improved governance, policies, and the culture in the organisation, implementing systemic change and improvements to ensure that the failures of The Rex project are never repeated again. This should give Councillors, and most importantly the community, confidence as we move forward,” said Mr. Thomas.
“Councillors, Officers, and the Audit and Risk Committee, have been fully supportive of the reporting, working through the investigation and have repeatedly called for the finalisation of the investigation to occur. The LGI have noted that throughout, Hepburn Shire Council and its Councillors have co-operated in the investigation,” he said.
Cr Hood, said “Council has been unable to find evidence that an independent, external valuation was completed prior to the purchase of The Rex building, something that is now a requirement due to the adoption of the Disposal and Acquisition of Land Property Policy.”
Cr Hood, said that although extremely disappointing that we won’t have a report, we can now endeavour to draw a line in the sand and move forward as an organisation and community.
“I’m pleased this announcement was made before the end of this Council term. We have a busy couple of weeks ahead of us with the consideration of the next stages of the Future Hepburn project including township structure plans, the financial vision and the last council meeting for the term,” he said.
Despite his disappointment about the outcome of this investigation, Cr Hood remained supportive of the LGI. “It is imperative that the Inspectorate has the appropriate powers to investigate failings in Local Government and that it has adequate resourcing into the future, preventing delays such as with this investigation, and ensuring that there is transparency and accountability in the use of ratepayers funds” said Cr Hood.
Enquiries regarding the Local Government Inspectorate investigation process should be directed to the LGI, with contact details and their media release available at https://www.lgi.vic.gov.au.
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