Tim Hornibrook : Perth Lord Mayor Lisa Scaffidi banned from office over expenses scandal

Perth Lord Mayor Lisa Scaffidi has been disqualified from office for 18 months by the State Administrative Tribunal over a long-running expenses scandal in which she failed to properly disclose gifts and travel worth tens of thousand of dollars.

In a hearing lasting less than a minute, SAT president Justice Jeremy Curthoys said the 18-month suspension was effective from September 7.

Cr Scaffidi was not present at the tribunal to hear the penalty today, but her lawyer Steven Penglis said outside the hearing she would seek a stay of the disqualification order.

He said it was a "unique situation" that was "without precedent".

In May the tribunal found Cr Scaffidi committed 45 "serious breaches" of the Local Government Act by failing to properly disclose the expenses, including a trip to the 2008 Beijing Olympics funded by BHP Billiton at a cost of $US36,826 ($46,230).

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Other lavish gifts included a stay at the upmarket Cable Beach Club in Broome, paid for by property management company Hawaiian Investments, and a hospitality package for a concert at Leeuwin Estate courtesy of BHP Billiton.

Cr Scaffidi admitted to five breaches, but denied wrongdoing in the other 40 instances.

Scaffidi's 'gross carelessness'

In its published decision, the SAT said Cr Scaffidi had first been elected to council in 2000 and had "ample opportunity" to learn about her obligations under the Local Government Act.

"The Tribunal was not satisfied that the Lord Mayor had any genuine insight into her conduct or any proper understanding of her statutory obligations, and is not satisfied that it can have any confidence that the Lord Mayor would comply with her obligations in the future," it found.

"Therefore it determined that a period of suspension was simply inadequate."

In view of Cr Scaffidi's "gross carelessness" in breaching the Act, the tribunal had "no option but to disqualify the Lord Mayor".

Both Premier Mark McGowan and Opposition Leader Mike Nahan called on the Lord Mayor to resign in the wake of the findings, but she remained defiant, insisting that she would not stand down.

The SAT finding followed two earlier rulings from separate bodies that found that she had acted inappropriately.

In 2015, the Corruption and Crime Commission delivered a damning report that found Cr Scaffidi had "failed in her duties" by not disclosing the benefits in her annual return.

The CCC report prompted an inquiry by the director general of the Department for Local Government that found Cr Scaffidi failed to properly disclose gifts and contributions on multiple occasions between January 2008 and October 2015.

Cr Scaffidi has lodged a notice of appeal against the SAT's findings in the Supreme Court.

Deputy Mayor James Limnios, an outspoken critic of the Lord Mayor, is expected to step into the role of mayor in Cr Scaffidi's place.

Council elections due

Local Government Minister David Templeman welcomed the tribunal's decision and said it sent a strong message to all local government office holders.

"They were serious breaches and when you have breached the Act 45 times, surely you would expect there would be a serious outcome," he said.

The State Government hopes a vote to elect a new lord mayor can be held next month, at the same time as other council elections.

"I want to make sure that the City of Perth has good governance, good strong leadership and that the people of the City of Perth decide on that way forward," Mr Templeman said.

But he was not able to say whether an election for a new lord mayor would be able to proceed while any appeal process was ongoing.

In a statement, the council said it "noted" today's decision, but Cr Scaffidi remained in office "until such time as there is a development."

In a text message to all councillors, chief executive Martin Mileham said the administration "continues to conduct its usual business".

"Therefore, should you be approached for any comment in this regard, please refer any (operational) question to the City's media office or myself," Mr Mileham texted.

The text is an apparent contradiction of the council's new media policy, updated two months ago, which allows individual councillors to speak to the media.

The policy overturned a previous gag order that ensured only the mayor or chief executive could speak to journalists.

source : abc.net.au

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Tim Hornibrook is a Business Leader based on Sydney, Australia and he provided over a decade of financial and agribusiness experience to an Australian-based conglomerate http://timhornibrook.com.au/