By Bridget Cook
AN independent investigation has found that Casey’s chief executive Mike Tyler may have breached the Local Government Act by not declaring a conflict of interest in relation to a sexual harassment claim lodged against him.
In the report, Simon Bailey from solicitors DLA Piper, says he thought Mr Tyler was wrong in his belief that he did not have a conflict of interest, and should have reported it to the first possible council meeting.
The council will now refer the findings to the Local Government Inspectorate for resolution.
Mr Tyler and the council were the subject of a harassment claim made by a former council employee in July 2010.
The complaint was subsequently considered by the Victorian Equal Opportunity and Human Rights Commission and VCAT, and a confidential settlement was reached at a mediation hearing in May last year.
Casey councillors were not made aware of the matter until after the settlement was reached – including details of the allegations and legal and settlement costs.
After becoming aware of the complaint, Mr Tyler instructed the council’s Director Corporate Services to deal with the issue.
Mr Bailey said that because the Director Corporate Services reported directly to Mr Tyler, there was a risk that the director might be perceived as having a conflict of interest between the interests of the council and the interests of his immediate superior.
“Had the council been aware of the issue, it could have taken steps to manage this risk,” the report stated.
The City of Casey said that Mr Tyler did not recognise that he had a conflict of interest and therefore did not report this to the first council meeting after becoming aware of such a conflict.
In an email on 28 July 2010, when Mr Tyler asked the Director Corporate Services to deal with the complaint, Mr Tyler said: “while the allegations relate to me, I believe that legally I do not have a conflict of interest under the LGA.”
Mr Bailey believes that Mr Tyler did appear to have had a conflict of interest in respect of the complaint and the proceedings.
He said it appeared that written disclosure of Mr Tyler’s interest was not made to the mayor at the time, Lorraine Wreford, however, Ms Wreford was aware of the matter from the outset.
Mr Tyler did not disclose the conflict of interest to the council until 17 May 2011, after councillors became aware of the complaint.
On 10 April this year, after the issue was leaked in the media, Casey Council resolved to request the Municipal Association of Victoria (MAV) to nominate an appropriately experienced person to investigate the process undertaken by the council’s executive officers and the council in relation to civil action brought against Mr Tyler and the council.
The report clears the council in its handling of the matter.
City of Casey Mayor Sam Aziz said the investigator had undertaken a very thorough and transparent investigation.
“Transparency and accountability is of the utmost importance to council, and that was the impetus for engaging an independent investigator recommended by the MAV, while providing a further independent process to consider the matter in a timely manner,” he said.
“This investigation goes a long way to refute the myths regarding council’s handling of this matter and deal with them in a rigorous, transparent fashion.’
“The City of Casey can now move forward and continue to deliver outstanding outcomes to the community.”
At its meeting of 3 July, council resolved to send the report and resolution, and the investigation report, to the Local Government Inspectorate, Minister for Local Government Jeanette Powell and the Audit and Ethics Committee.
The News was told that Mr Tyler was not available for comment.
The full investigation report can be found at www.casey.vic.gov.au/meetings/article.asp?Item=22944.
What the lawyers found:
• Mr Tyler did not seek to influence the officers and he delegated authority to manage the complaint and did not become inappropriately involved.
• The officers who managed the handling of the complaint followed proper processes.
• It was appropriate for the matter to be settled, and the manner in which it was settled was appropriate, and such settlements are typically confidential.
• Mr Tyler complied with the requirement that the mayor be advised of the complaint.
• Mr Tyler did not recognise that he had a conflict of interest and therefore did not report this to the first council meeting after becoming aware of such a conflict.
