Hobson Bay council defends ward fund allocations

Hobsons Bay council pushed through 10 ward fund allocations at its last meeting before the end of the financial year amid fears that discretionary funds will be abolished.

As reported by Star Weekly, Hobsons Bay was last year named one of three metropolitan councils that used “risky” practices that could allow corruption in handing out ratepayer dollars at councillors’ discretion.

The Local Government Investigations and Compliance Inspectorate said Hobsons Bay was among councils that had practised little or no accountability. Maribyrnong was among four identified as having transparent and “accountable” practices.

Thirty-two of Victoria’s 79 councils have a councillor discretionary fund (CDF), allowing councillors to allocate money as they see fit.

The report stated CDFs lacked accountability and transparency, and created a situation that “may allow” corrupt practices.

“Generally, feedback received confirmed that councillors are protective of discretionary fund practices, almost to a point of treating available funds as being for their own personal distribution, without the need for adherence to stringent allocation/approval guidelines,” the report said.

Hobsons Bay was flagged as having “poor CDF practices” with a mayoral discretionary fund of $44,000 that required no accountability on the part of the mayor, had no recorded costings, timeframe, transparency or assess- ment criteria.

Hobsons Bay mayor Sandra Wilson said the report recognised that ward fund allocations could be proposed by individual ward councillors or through the mayor via the mayoral program, and approval was given where they enhanced the social and community good of Hobsons Bay.

“In response to the review, the Hobsons Bay mayoral program is now subject to a report to council that approves the proposed program and includes a detailed budget for each element,” Cr Wilson said.

“The council receives progress reports on the program during the year and details of the program are published in council’s annual report and on its website.’’