Mr Bilske presented an update on the proposed development at the council meeting on Tuesday, November 25 and said MRE had advised that COVID-19 had caused difficulty in finalising funding as it was unable to travel internationally.
“However, they have progressed with their funding arrangements with documentation now complete and arrangements being finalised for monetising the loan arrangements in Australia,” Mr Bilske said.
“It is anticipated the current council loan to MRE will be fully repaid along with all interest accrued by November 30 (Monday) and acquisition of the subject land at Line Road Moama as per the Memorandum of Understanding to follow shortly after.”
The loan was made to MRE in November 2018, to discharge a debt owed to Edward River Council through another investment vehicle, Dongmun Greentec, and was secured by a first mortgage over a property near Geelong.
In March last year, council voted to increase the total investment to MRE to $900,000.
The main body of the update report was kept confidential and council declined to answer questions from the Riv regarding whether any loan repayments have yet been paid by MRE.
Mr Bilske also revealed the internal audit and risk committee was not undertaking the investigation into dealings with MRE and council’s investment in the project, as it was “outside the scope of an internal auditor”.
Instead the brief has been sent to a company which Mr Bilske said “specialises in investigating and reporting on ethical conduct”.
“It is anticipated this review will be completed with a final report prepared for council by the end of the year as requested,” Mr Bilske said.
Council declined to answer multiple questions by the Riv regarding the council’s processes and the current audit investigation, including what company is undertaking the review.
“Murray River Council will not be making any further comment until the audit investigation is completed,” a spokesperson said.
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