Local governance in the Pilbara

THE WA Corruption and Crime Commission in 2012 found the Pilbara cities of Karratha and Port Hedland were exposed to the highest risk of misconduct.
Not only because of their strategic importance to WA, “engine room of the Australian economy”, but because both local authorities turn over hundreds of millions of dollars a year.
In 2011, $135 billion was either committed or in the pipeline to fund major resource projects in the Pilbara: ‘While some of these projects are not in direct partnership with local governments in the Pilbara, all significant projects in the region impact on the operations of those local governments.”
Since the CCC tabled its review into the ability of four Pilbara councils to prevent misconduct, the Town of Port Hedland has been suspended amid complaints of bullying, harassment and political in-fighting (2019); Shire of Ashburton suspended after the CEO was dismissed in a probity audit (2012); Shire of Roebourne (now Karratha) sacked its CEO due to a “relationship breakdown” in council (2012); and Exmouth sacked the same year after it could not “govern effectively”.
The CCC stated Port Hedland and Karratha were, “at the forefront of growth and development pressure impacting on the region”, which it said, “increases misconduct risks”.
Karratha miner Norwest Sand & Gravel has submitted a complaint containing allegations of misconduct at the City of Karratha and departments of mines, land administration and Water Corporation to the WA parliamentary select committee on local government (‘Trouble in WA’s engine room’, July 7).
Director Kim North told StreetWise his allegations fell outside the CCC’s jurisdiction because he could not prove ‘reasonable suspicion’. Former ministers, mayors, councillors and council staff are named in the NWSG parliamentary submission lodged in August last year. It cannot be released publicly until the committee reports or decides to make it public.
NWSG’s submission refers to the CCC’s 2012 review findings, ‘Report on the Review of the Capacity of Local Governments in the Pilbara to Prevent, Identify and Deal with Misconduct’ (www.ccc.wa.gov.au/sites/default/files/Local%20Governments%20in%20the%20Pilbara.pdf).

Compliance

The CCC interviewed 98 staff from 2010 to 2012 (22 at Roebourne and 22 at Port Hedland) who gave undertakings to introduce steps, “to overcome their exposure to a particularly heightened level of misconduct risk”. Misconduct is defined to include corruption.
Prior to the Commission’s involvement, councils had, “little in the way of organisational processes and practices in place to minimise exposure to their risk”.
Mr North says there is no reason to believe this has changed at the City of Karratha given the continuing obstacles his company faced going about its legitimate business (‘Pilbara sand miner pushes back’, July 8).
StreetWise asked the City what measures it had in place to minimise the risk of misconduct at the local authority. No comment.
In response to the CCC findings, the Shire of Roebourne (Karratha) said at the time: “It (the Shire) will not tolerate misconduct and will deal with breaches if they ever arise.”
But Mr North said while City director of strategic projects and business Simon Kot reassured the CCC of its commitment to deal with misconduct, CEO Ms Longmore and other senior staff had wrapped up their ‘investigation’ into NWSG’s claims.
“As a result of my review of each of your complaints and allegations, I do not suspect that any of them concerns or may concern misconduct. Therefore, I will not be referring any of them to the CCC,” Ms Longmore said, adding in a January 27, 2012, letter to Mr North, “Other than what you ‘feel’, you have not provided any evidence, and I am not aware of any evidence, that any Shire employee or member acted unlawfully or improperly”. Ms Longmore did not return StreetWise calls.
NWSG’s complaints were again dismissed by council in 2014. And in 2016, current CEO Chris Adams wrote to Mr North: “I have nothing further to add on claims of misconduct that you have made against the Shire in the past, as these claims have already been considered by the Shire and responded to.”
Mr North said the previous year Mr Adams was one of several executive staff who moved to close down NWSG for non-compliance using the threat of prosecution.
City lawyers McLeods Barristers & Solicitors wrote to NWSG on June 30, 2015, stating NWSG had contravened provisions of the local planning scheme, the penalty for which was, “a fine of $1,000,000 and a further fine of $125,000 for each day during which the offence continues”. NWSG had until July 10 to comply.
Mr North said the letter caused him unnecessary stress over the future of his family run company built up over 40 years of hard work, his frustration expressed in a July 3, 2015 letter to McLeods just days after having suffered a heart attack: “I cannot deal with the City of Karratha any longer because of the stress, anxiety and the expense they cause me.”
Mr North’s son Isaac wrote to McLeods expressing serious concerns over the impact on his father’s health and the prosperity of the business, adding NWSG could meet City representatives in August to resolve any outstanding issues.
The McLeod’s letter of demand was preceded by a May 17 email from planning services manager Jerom Hurley to Mr North, “it is now necessary for the City to take more serious action in relation to these matters … the City’s solicitors will be in contact with you shortly”.
Despite NWSG agreeing to meet, Mr Hurley states in an internal council email that after having discussed the matter with executives, “the time for being lenient and cooperative about this has passed. The City is certainly not interested in having the matter dragged out to August”.
Both Mr Adams and former director of development, regulatory and infrastructure services David Pentz were CC’d into Mr Hurley’s email. McLeods wrote to Mr Hurley on July 17, 2015: “It seems the threat of prosecution may finally have forced some action”.