The Minister for Local Government, Gabrielle Upton, has referred a report into Auburn Council to the Independent Commission Against Corruption, after a public inquiry ordered by her predecessor was unable to compel witnesses to answer questions.
Richard Beasley SC conducted the inquiry into the former Auburn Council, which was thrust into the spotlight by its former deputy mayor Salim Mehajer's famously extravagant 2015 wedding which caused unauthorised street closures in Lidcombe and drew national media attention.
"It really was the wedding that killed the council," Ms Upton told parliament, as she tabled the report on Thursday.
Ms Upton said the inquiry found that Mr Mehajer "may have breached the disclosure provisions in the Local Government Act" relating to the sale of council-owned property to a company associated with him, and recommended that a review be conducted into road closing procedures to give notice to residents so they could lodge objections.
But Mr Beasley was frustrated in his attempts to gather information during the inquiry by the limited scope of his powers. He did not make adverse findings against the former councillors.
Ms Upton told Parliament that "this inability hampered evidence being gathered during the inquiry".
Mr Beasley recommended that the Act be changed to allow a commissioner appointed to a public inquiry the power to compel witnesses to answer questions.
The previous minister for Local Government, Paul Toole, sacked Auburn Council last February before setting up the inquiry. Auburn was merged with neighbouring Holroyd to form the new Cumberland Council in May.
Ms Upton also tabled reports of two other 2016 inquiries into troubled councils: North Sydney and Murray.
The inquiry into North Sydney by Tom Howard SC found evidence of "dysfunction", including the mayor, Jilly Gibson, not being able to access her own office for a time.
But the council escaped stronger censure, with the minister issuing a Performance Improvement Order and installing a temporary adviser.
North Sydney is fighting a forced amalgamation with neighbours Willoughby and Mosman, with the matter set to return to court in April.
Murray Council merged last year with its neighbour to form Murray River. The Minister praised the actions of the administrator in solving the council's former problems where councillors were "at war" with each other and the general manager.
Auburn became notorious for the exploits of its high-profile deputy mayor and property developer Mr Mehajer and his extravagant wedding in Lidcombe in 2015, which featured a motorcade and helicopters.
Months later, Mr Mehajer was briefly suspended from council after it was revealed he had voted on planning changes which increased the value of property he owned by $1 million without disclosing his interest.
Later, the NSW Supreme Court found Mr Mehajer had not breached his pecuniary interest obligations by voting on the changes in 2012 and 2013.
Mr Mehajer is now ineligible to stand as a councillor after being disqualified by the Australian Securities and Investments Commission from managing corporations for three years.
Mr Beasley found that three planning proposals supported by the former Auburn Council, but resisted by council planning officers, lacked merit.
But the administrator of Cumberland Council, Viv May, has already suspended those proposals.
Mr Beasley also found that the former Auburn Council should have commenced a prosecution against BBC Developments, a company owned and controlled by Ronnie Oueik, a former councillor and former Liberal candidate for Parliament.
The council had audited an apartment development of BBC's and there was evidence some two-bedroom apartments were unlawfully built as three-bedroom units.
But despite twice being provided with legal advice that it was in the public interest to commence a prosecution, Auburn failed to start this prosecution. Mr Beasley attributed this failure to a "form of miscommunication" between staff.
