Inquiry ventures no opinion due to court case
The report on the public inquiry into the Central Coast Council has chosen to "not venture an opinion as to the state of Mr Murphy's knowledge as to the use of restricted funds" prior to June 4, 2020.
Commissioner Ms Roslyn McCulloch was referring to former general manager Mr Gary Murphy.
However, she did say the Mr Craig Norman as chief financial officer at the time "ought to have had knowledge of the cash position of the council and the balances of restricted funds".
In relation to Mr Murphy, commissioner Ms Roslyn McCulloch said: "I am aware that this issue is likely to be determined by a Court of record."
Directions hearings were listed for both March 17 and 24 for a defamation case launched by Mr Gary Murphy against Mr Dick Persson in the District Court before Judge Judith Gibson.
Referring to a report from former council administrator Mr Dick Persson, Ms McCulloch said: "Somewhat controversially, Mr Persson alleged that the former chief financial officer Mr (Craig) Norman and the former general manager Mr Murphy, were aware of this unlawful use of funds.
"In his oral testimony, Mr Persson was questioned about the emails and notes he relied on to reach that conclusion.
"The Inquiry also heard explanations from Mr Norman and Mr Murphy as to the meaning of the somewhat cryptic notes and comments.
"As I am aware that this issue is likely to be determined by a Court of record, I will not venture an opinion as to the state of Mr Murphy's knowledge as to the use of restricted funds for unlawful purposes prior to his receipt of the Grant Thornton Phase 1 Report on 4 June 2020.
"Mr Norman, on the other hand, as chief financial officer, ought to have had knowledge of the cash position of the council and balances of restricted funds.
"His evidence was that he did not become aware that unrestricted cash had fallen into the negative in October 2019 until after he left Council.
"Mr Norman resigned from Council and his last day was April 24, 2020.
"It is difficult to accept that a chief financial officer, in the role of a responsible accounting officer under the Local Government Act, could not have been aware of the true cash position of the Council for some six months."
Ms McCulloch said: "Mr Persson said the Council (presumably referring to the councillors) did not know how much money they had from the outset and set out on a program of expanded capital works and services which they could not afford.
"Mr Persson said much of the expenditure was funded from restricted reserves either unlawfully or without approval of the elected body."
SOURCE:
Report, 17 Mar 2022
Roslyn McCulloch, Public Inquiry
into Central Coast Council