In 2018, council paid $1.2 million for land on Mathoura-Line Rd — selected by MRE — without obtaining a registered valuation, before signing a leaseback to the previous owner for $15 an acre.
Council later sought a valuation from registered valuer Eishold, in July this year, which found a land value of $790,000 and a lease price between $50 and $75 an acre was possible.
At the time, acting chief executive Brian Barrett — who has since moved on — admitted the high purchase price was required to convince an “unwilling seller”.
At its August meeting, council resolved for an audit investigation to be conducted into the dealings — which is being undertaken by an external company.
NSW Member for Murray Helen Dalton referred council to the Minister for Local Government Shelley Hancock in October after being notified of the situation by ratepayers.
The OLG said it would make “preliminary inquiries regarding the matter” and would respond to issues raised by Ms Dalton as soon as possible.
“It’s really concerning that it’s ratepayers’ money,” Ms Dalton said.
“When councils do dodgy deals at inflated prices in secret, we the public have a right to know what’s going on.
“ICAC (Independent Commission Against Corruption) needs to investigate this thoroughly.”
In the letter, Ms Dalton outlined potential breaches of the Local Government Act, including the acquisition of the land in Mathoura-Line Rd, the subsequent lease, and the $900,000 loan by council to MRE to pay off its debt to Edward River Council (Deniliquin).
“There appears to be a lack of good governance and accountability to the ratepayers by the council and in particular (chief executive) Des Bilske and (director of community and economic development) John Harvie,” she wrote.
Ms Dalton also noted there was a high risk of the development not proceeding and council ending up with an “overpriced rural land asset”.
“MRE directors and their related entities have had five previous attempts at setting up this Korean ethanol plant in Junee, Deniliquin, Langford, Geelong and Warrnambool,” she said.
It’s a backflip of sorts for Ms Dalton, who had written a letter of support for the project in July to NSW Minister for Planning and Public Spaces Rob Stokes, after a teleconference with council.
“I took it at face value,” she said.
“The thing is, you trust people, particularly in government, to give you the correct information.”
Ms Dalton said she was usually careful about writing letters of support involving private businesses but as it was a council project, she thought it would benefit ratepayers.
At council’s November meeting on Tuesday, November 24, Mr Bilske provided a confidential update report and said he anticipated the $900,000 loan would be repaid by the end of this week.
Cr Tom Weyrich said councillors were not given the opportunity to discuss the report during the confidential section of the meeting.
“There’s some people in senior management at Murray River Council that really need to consider their positions and how they’ve blown in excess of a million dollars,” he said.
“I’ve been ridiculed and criticised for being nothing more than a troublemaker because I’m the only councillor there who’s asked any questions in relation to this matter.”
Murray River Council said it would not make any comment until the current audit investigation was completed — anticipated by the end of the year.
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