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Shire CEO's pay contract probed

03 Nov, 2009 04:00 AM
THE Victorian Government solicitor is investigating the validity of the almost $300,000 a year salary package contract of Mornington Peninsula Shire CEO Michael Kennedy.

The investigation was called for by Local Government Minister Richard Wynne after receiving advice from the Ombudsman, George Brouwer.

It appears the shire could be forced to advertise the CEO's position if Dr Kennedy's 2004 and 2008 contracts are found to be invalid.

A report by Mr Brouwer into Dr Kennedy's reappointment in 2004 has also recommended that the council:

*Review its freedom of information (FoI) processes and procedures, including record-keeping and records management.

* Consider counselling governance and corporate support manager Noel Buck in relation to his role "in this matter".

* Review its conflict-of-interest policy.

* Consider counselling Dr Kennedy in relation to his conflict of interest in seeking legal advice regarding an FoI request for documentation relating to his employment.

Mr Brouwer said recommendations in his report had been accepted by Mr Wynne and Mornington Peninsula Mayor Anne Shaw.

However, when contacted yesterday afternoon by The Independent, Cr Shaw said Mr Brouwer had advised her

not to comment on his report. "I am not able or prepared to comment," she said.

Asked if ratepayers should be told about the Ombudsman's findings, Cr Shaw replied: "I am not at liberty to discuss it in any shape or form."

About 2? hours later, Cr Shaw sent an email stating the Ombudsman's investigation "made no adverse findings against council, the CEO or any of its officers".

"Council is confident that the 2004 contract is valid. This view is based on written legal advice obtained from Tim Ginnane, then Senior Counsel, now His Honour Judge Ginnane, that the contract is valid."

Mr Buck started four weeks' leave on Friday.

Dr Kennedy was not available for comment.

The Ombudsman's report followed two letters from Peter Davis of Tyabb expressing disquiet at Dr Kennedy's reappointment in 2004 and the lack of co-operation from the shire when seeking access to the written contract. His wife Val Davis, then president of the Tyabb and District Ratepayers Business and Environment Group, said the Ombudsman's initial reaction had been "there was nothing out of the ordinary" about the contract.

"We had been approached by people involved with the shire who were concerned that the reappointment was being pushed through with undue haste," Mrs Davis said. They had felt Dr Kennedy was not being subject to the performance criteria as specified under the Local Government Act.

"His performance was not quantified," Mrs Davis said.

"We want to see the Mornington Peninsula have the best CEO it can — it might be him [Dr Kennedy] — but we'd like to see his performance measured."

Mrs Davis said council officers had "obfuscated" by "handing out bits and pieces of the contract" when the entire document was requested under FoI. "We've really had to fight for it. This outcome is not seen as a win. It shouldn't have had to go to these lengths."

Mr Brouwer said Dr Kennedy had asked a council officer to seek a second opinion on legal advice that the shire "was to provide the information requested".

He said the officer who had "conducted the initial FoI search for Dr Kennedy's 2004 employment contract also conducted the review, so there was no separation of duties".

"Further, the council officer dealing with the request for the 2004 contract repeatedly failed to locate and produce the requested document in its totality."

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