The Napthine government has axed the board of its beleaguered urban development authority, Places Victoria.
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Fairfax Media understands that state cabinet decided last week to remove the non-government members of the board, sitting under controversial chairman, Ken Fehily.
The board had expected to be reappointed, and in January had selected a new chief executive officer, Gregory Anderson – who, according to a recent statement from Places Victoria, was due to start today.
Several board members had also been told they would continue to sit on the board.
The board's term of office ended on 30 March.
But outgoing chairman Ken Fehily indicated he had been looking forward to another term.
"If the government had asked me to stand again I'd consider it," he said on Monday.
Mr Fehily said he did not know why the non-government board members had not been invited to stand for another term.
The Baillieu government created the statutory authority in 2011 to take over the work of Victoria's former urban renewal authority VicUrban.
It recorded an $18 million loss in its first year because of write-downs to its property portfolio and then went through a tough restructure.
Almost a third of its employees – the equivalent of 53 full-time positions – were sacked, and former chief executive officer, Sam Sangster, resigned, apparently under pressure.
Mr Sangster was one year into a five-year contract after falling out with Mr Fehily.
In December, 2012, Planning Minister Matthew Guy, who is responsible for the authority, said he had confidence in Mr Fehily, an accountant and art collector who has "Mr GST" and "Mr Art" tattooed on his biceps.
"Ken is a colourful character, but Ken has a job at hand which is difficult," Mr Guy said.
"He needs to make sure the organisation is viable for the long term … I trust the board, I trust the direction the board is taking."
But Cabinet appears to have disagreed and has appointed senior public servants Dean Yates and David Webster to take over.
Mr Fehily was appointed acting chairman last year, when chairman Peter Clarke stood aside to face civil action by the corporate watchdog ASIC over a matter not related to Places Victoria.
