A Ballina Shire Councillor has called for a review into NSW Local Government probity rules, to ensure better accountability and transparency in the awarding of council contracts after publishing information about a $70,000 contract that was awarded to a sitting councillor to install 227 solar panels on the town's swimming pool.

Independent councillor (Cr) Rod Bruem said, “Councillors were only made aware of the contract after concerned members of the public started asking questions, as the panels were being erected at the prominent River Street site,” Cr Bruem said.

“Given the significant probity issues recently exposed at Liverpool Council in Sydney, I am seeking the support of fellow councillors to raise this with the Minister for Local Government. It is time the regulatory framework was reviewed to ensure greater public confidence in local government,” Cr Bruem said.

In an email from staff to councillors (sent July 11) confirming the $70,812 solar panel contract to Premium Solar Ballina, councillors were advised that in addition to the pool installation, the company had also been awarded two additional contracts to install solar panels on council buildings.  

Premium Solar Ballina was the lowest of three quotes received by Ballina Council. The other two quotes were $88,413 and $111,000.

”We understand Cr Johnson has an interest in the company,” the email from staff stated. 

Cr Bruem said, “The General Manager (Mr Paul Hickey) insists the correct procedures for awarding such contracts have been followed; that the pool contract could be awarded by a staff member without any disclosure or reference to the elected council."

Cr Jeff Johnson has, in fact, confirmed he is the owner of Premium Solar Ballina in his legal declaration of interests to council. 

According to NSW Local Government Tendering Guidelines, contracts worth more than $150,000 must go through a formal and detailed public process. So, technically, Ballina Council has followed the guidelines.

Councils are “encouraged to use the same strict procedures in circumstances including, “where the sale or purchase of goods or services may be considered controversial, contentious or political.”  Also, “Where there is a risk that ‘would be’ tenders could claim that council has ‘preferential’ arrangements with a single supplier.”

Despite this, there is nothing to prevent council staff from awarding multiple contracts to sitting councillors or other close connections.

Cr Bruem said, “I believe it would have been in the public’s best interest for the strictest and most transparent tendering guidelines to have been followed for a substantial contract involving an elected member of the governing body. Furthermore, the top submitted quote for this job came close to the actual ceiling that can be signed off by the General Manager, which I believe should have triggered the rules for more accountability.

“However, because they’re only guidelines, suggested as ‘best practice’, multiple contracts adding up to substantial sums of money can be handed to councillors as well as any related parties without ratepayers or their elected representatives being any the wiser.

“Historically, there have been community concerns on the North Coast -and elsewhere in NSW - about local government officials using their positions to enrich themselves, their family and associates.

“It is clear that there is a definite weakness in the current rules, as they make it too easy for valuable contracts to be awarded to individuals with close personal connections to council.  In the interests of ratepayers and residents, this process needs to be reviewed to ensure confidence is maintained in our system of local government,” Cr Bruem said.

Cr Bruem said he will be raising the matter in today's Ballina Council meeting, which starts at 9 this morning.

The Lismore App asked Lismore City Council if a councillor-owned business has been awarded a contract. Council's response was:

"Council does not comment on what is happening at other councils.

"No LCC Councillor’s business interests have received a Council tender."