The NSW government has given Liverpool City Council one week to justify why it should not be suspended following the release of an interim report revealing dysfunction, maladministration, and interference in council operations.
Local Government Minister Ron Hoenig has announced a public inquiry and a potential suspension of the council, after investigators identified matters sufficient in seriousness and volume to warrant an immediate inquiry.
The OLG said the interim report revealed a strong likelihood of additional issues affecting the operations of the Council that are yet to be identified.
Mr Ross Glover has been appointed as the Commissioner to undertake the inquiry. In the event of a suspension of the Council, an interim administrator will be appointed to perform the functions of a governing body.
The investigation was commenced in April after the sacking of CEO John Ajaka, the tenth person to hold the CEO position at the council in the last eight years.
The report will also be referred to the NSW Independent Commission Against Corruption (ICAC) due to the seriousness of some of the allegations.
Planned council elections in September will be suspended while the inquiry is conducted, but Mayor Ned Mannoun has reportedly vowed to explore legal options to ensure they proceed as scheduled.