The Crime and Corruption Commission (CCC) has finalised investigations into the Whitsunday Regional Council and has found no evidence that former or current Council employees committed criminal offences.
The CCC, and its predecessor the Crime and Misconduct Commission (CMC), investigated two separate matters involving the Council.
Investigation 1
After the Council had repaired infrastructure damaged during natural disasters in 2010, the Queensland Reconstruction Authority (QRA) advised the Council in 2012 that some of the works were not eligible for funding under the Natural Disaster Relief and Recovery Arrangements (NDRRA) program.
In November 2012 the Council referred a complaint to the CMC. The complaint alleged that former Council employees knowingly undertook ineligible works through the 2010 NDRRA program and fraudulently claimed NDRRA funds for those works.
The CMC assessed a large volume of material, and in August 2013 commenced an investigation. The investigation involved examining a large number of documents, interviewing more than 40 witnesses and liaising with other government agencies.
The CCC’s investigation has found no evidence that the Council employees committed fraud in undertaking the works or in applying for NDRRA funding. The investigation found that the NDRRA guidelines were open to different interpretations and the Council employees had an honest and reasonable belief that the works were within guidelines. The investigation further found that a range of other factors also contributed to the Council’s overspend on 2010 disaster recovery works.
Investigation 2
In September 2013, the CMC received another complaint from the Council. The complaint alleged that former Council employees failed to correctly record a loan of more than $10 million in financial statements; used the borrowings on a cash flow basis, in breach of loan conditions and Council policy; and misled Councillors about the Council’s financial position.
The CMC assessed the complaint and in October 2013 commenced an investigation. The investigation has found no evidence to support any of the allegations and no evidence of any criminal offence.
The CCC has today notified the Council and other relevant parties of these outcomes. The investigations are now closed and the CCC will take no further action.
ENDS
