On 7 July, the City of Melbourne was made aware of an allegation that the then Chief Executive Officer, Justin Hanney, may have received and not declared anonymous donations to support the costs of competing in the Sydney to Hobart Yacht Race.
Council established a process of review and referred the matter to the CEO Employment Matters Committee to undertake that review, which commenced at the start of August when Mr Hanney returned from leave.
The CEO Employment Matters Committee is led by Independent Chair, Jude Munro AM, and has access to independent legal advice and other necessary resources.
The Committee's review has been thorough and conducted in line with the principles of procedural fairness and natural justice - and Mr Hanney has had the opportunity to review and respond to its draft report.
On 19 October, Mr Hanney resigned as City of Melbourne CEO and on 26 October, Council thanked Mr Hanney for his dedicated service to the organisation and appointed Alison Leighton as Acting CEO.
Council has now considered the confidential report of the CEO Employment Matters Committee on the matter.
Council has noted the report and:
- Found that the donations should have been declared as part of City of Melbourne's personal interests return process, but found no evidence to indicate that Mr Hanney intentionally or recklessly lodged returns that were false or incomplete.
- Will refer the non-declaration of gifts to the Chief Municipal Inspector as required by the Local Government Act.
- Will advise Local Government Victoria of the need for strengthened guidelines in the Local Government Act relating to CEO personal interest returns and issues relating to joint ownership of assets, and requested that action be taken to address these shortcomings.
- Has commenced a program of review and improvement into City of Melbourne's governance rules relating to gifts and declarations for all employees.
