Local councillors across the state have been warned to take their responsibility declaring personal interests seriously, in the latest report from the Local Government Inspectorate (LGI).
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The LGI, which ensures councils adhere to the Local Government Act 2020, has recommended the Act be amended to include a deadline for councils to publish a summary of councillor and officer declarations, after identifying a high level of non-compliance, which it declared is 'an ongoing issue'.
Seven councillors were interviewed and 35 received a written warning after the review; one councillor faces further action.
The Act requires councillors, members of delegated committees and key council staff submit a record of their personal interests to council, and an initial personal interests return must be completed 30 days after election or appointment and biannually afterwards.
In its current review into personal interest returns of 650 Victorian councillors, the LGI found 332 did not complete their returns in compliance with the Act.
The LGI examined 4,600 councillor returns between October 2016 and February 2020, including a high-level review of councillor personal interest returns from 61 councils and a detailed review of councillors from 17 councils.
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The review of Victoria's 79 council websites found three did not have a summary published at all, and identified 13 councils which had only published the initial return in December 2020, failing to publish a summary of their biannual personal interests returns. Central Goldfields Shire was one of these councils.
"We embarked on the review because the Inspectorate and other integrity agencies have identified incomplete and inadequate personal interest disclosures are a historical and ongoing issue affecting the local government sector," said Chief Municipal Inspector Michael Stefanovic.
The LGI also found two out of every five councillors failed to disclose interests in one or more of their returns or failed to submit a return at all; councillors failed to disclose interests in trusts, property and office positions held; and councillors routinely declared interests inconsistently.
The City of Ballarat was not mentioned in the report, and CEO Evan King said council has prepared and published a summary of the returns in accordance with the Act, located on its website.
"Councillors and officers have been briefed on the changes to enhance their awareness and education of what is required for their returns, as well as having been provided guidance material prepared by Local Government Victoria to inform their declarations," Mr King said.
"Councillors and officers understand the importance of ensuring accurate and up to date returns to increase and build trust and confidence in the public sector and local government industry.
"In accordance with s135 of LGA 2020, council has prepared and published a summary of the returns that can be located on Council's website: https://www.ballarat.vic.gov.au/council-documents-available with the Summary of Biannual Personal Interest Returns 2021."
LGI officers found councillors failed to comply or disclose private interests for a range of reasons, including failing to understand legislation and hasty, poorly thought-through or copied returns.
"Compliance needs to be improved through better oversight and enforcement with a view to raising the level of compliance and public trust in their local representatives," Mr Stefanovic said.
Central Goldfields Shire did not respond to questions from The Courier.
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