The NSW Government has ordered a public inquiry into a western Sydney local council after an interim report detailed widespread dysfunction and maladministration.
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The Minister for Local Government Ron Hoenig has written to Liverpool City Council about his intention to suspend the council after "serious concerns" were detailed in an interim report.
Council elections in September have also been postponed while the inquiry is being conducted.
The Council has been given seven days to respond.
The report details a number of areas of concern with regard to recruitment and staffing practices, procurement irregularities, allegations of inappropriate record keeping and widespread evidence of a toxic work environment.
The report also outlined evidence of direct interference from the mayor and councillors in the assessment of development applications and other compliance and regulatory activities.
The interim report provided to the Minister forms part of an investigation announced in April 2024.
Minister Hoenig said there were "serious issues" within the council.
"Communities expect their council to be operating with the highest level of integrity and in their best interests," Mr Hoenig said.
"It has become clear that is not the case at Liverpool City Council and there is major dysfunction across the entire organisation."