Liverpool City Council is set to have its first day in court in its legal case against a public inquiry into allegations of dysfunction, maladministration and possible corruption.

Local government minister Ron Hoenig last week ordered a public inquiry and threatened to suspend Council after an interim report from the OLG detailed ‘serious concerns’ about goings on at the council.

Liverpool has been given until July 31 to respond to the interim report as it pursues legal action against the State of NSW, Mr Hoenig and three other departmental officials.

Legal representatives for Council are set to appear before the NSW Land and Environment Court on Friday afternoon seeking a halt on all actions against it until the full court case, listed for September 6, has been fully heard.

Councillors split

The NSW government’s decision to hold the inquiry has caused a public split between councillors supporting a probe, and those who say it’s a politically motivated attack.

In in extraordinary meeting on Monday, five councillors voted in favour of a motion put forward by Mayor Ned Mannoun to take “legal proceedings to prevent or restrain the minister from proceeding with the public inquiry, postponing the election and suspending the council”.

Three councillors voted against it.

Cr Mannoun said Council was taking action against an act of political thuggery.

 “Our legal advice has demonstrated that the actions of the state government are unlawful,” he told a media conference.

“They are denying the people of Liverpool and Western Sydney their democratic right to have a say in who represents them.”

He also said natural justice had been denied to those mentioned in the report.

“This is completely unfair, and for the Labor government to do this just over 50 days from an election raises many questions,” Cr Mannoun said.

“They want to stop  a democratic process against us as council for doing what is a great job.”

Dissent

But the dissenting councillors issued a statement on Tuesday saying the result of the meeting was disappointing for the community of Liverpool.

“The interim report of the Independent Investigation of the Office for Local Government raises serious concerns,” the statement said.

“We, the dissenting Councillors, argued for Council to support the process that the Minister for Local Government has laid out.

“We believe it is essential that the process of a public inquiry be supported and to proceed for the allegations to be tested and to afford people the opportunity to clear their name.”

They also backed the minster’s decision to postpone the September council election while the public inquiry in underway as “a reasonable and sensible action that will enable our community to have confidence and trust at a future election in the integrity of Council and councilors”.

Legal case

Council is seeking to set aside Mr Hoenig’s decision to appoint Ross Glover as Commissioner to hold a public inquiry and prevent Council being suspended. It also wants the September election to go ahead, and to expunge the interim report from the public record.

The legal action also demands a declaration that in reporting adversely about Liverpool Council in its interim report Mr Hoenig and OLG officials “failed to observe the requirements of procedural fairness and exhibited actual or apprehended bias”.