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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2018-07-31 Daily Xml
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Ministerial Statement

Coober Pedy District Council

The Hon. S.K. KNOLL (Schubert—Minister for Transport, Infrastructure and Local Government, Minister for Planning) (14:28): I seek leave to make a ministerial statement.

Leave granted.

The Hon. S.K. KNOLL: The Ombudsman has published the final report of his investigation into the District Council of Coober Pedy's decisions to execute the power purchase agreement. As the Ombudsman has noted, his investigation was in response to referrals from the Independent Commissioner Against Corruption, pursuant to sections 24(2)(a) and 24(3) of the Independent Commissioner Against Corruption Act 2012.

The Ombudsman has identified a range of errors and failures on the part of the council as it undertook a critical procurement process. These failures raise serious issues about the operation of the council. The report also includes the Ombudsman's views on the actions of the former department of state development, now the Department of Energy and Mining, and the former minister for mineral resources and energy.

My responsibility as the Minister for Transport, Infrastructure and Local Government is to consider using my powers under the Local Government Act 1999 in relation to the council's failings and I will therefore not comment on matters relating to this department or the former minister. However, I can assure the house that I am giving very careful consideration to my responsibilities and powers under the Local Government Act. There are a range of potential actions that I may take under the act to address council issues and failures to comply with statutory obligations.

On the basis of a report of the Ombudsman, I may make recommendations to a council if I consider that a council has contravened or failed to comply with a provision of this or another act, or has failed to discharge a responsibility under the Local Government Act or another act, or an irregularity has occurred in the conduct of the affairs of a council in relation to matters arising under the Local Government Act or another act. Then I may give directions to the council to rectify the matter or to prevent a recurrence of the act, failure or irregularity.

If I consider that there have been serious contraventions, failures or irregularities at a council, I may recommend to the Governor that the council be declared a defaulting council and an administrator be appointed. Of course, I am mindful of the Ombudsman's suggestion that I should consider taking such actions; however, before I take action to give directions, or recommend to the Governor that the council be declared a defaulting council, I am required to provide the council with a reasonable opportunity to make submissions to me on the report. Once I have considered a submission made in these circumstances, I will then take the action that best addresses both the matters raised in the report and any response from the council.

As members will know, the Auditor-General is currently examining the accounts of the council under the Public Finance and Audit Act 1987, as requested by the former treasurer on 1 May 2017. I may take action under the Local Government Act, on the basis of a report from the Auditor-General, as I can on the basis of a report received from the Ombudsman; however, I cannot comment on these potential actions until such time as I have received the Auditor-General's report.

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