Home News Gingin CEO says no need to disclose LGIS board membership

Gingin CEO says no need to disclose LGIS board membership

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CEOs and officers don’t vote on matters before a council so are not required to leave a meeting if they disclose an interest but they need to disclose any relevant interest, according to DLGSC. File picture

THE Shire of Gingin chief executive officer Aaron Cook says there is no requirement for him to disclose either a financial or impartiality interest due to his position as an LGIS board member in relation to a flying club’s unsuccessful application to lease Beermullah airstrip.

The LGIS profile on LinkedIn says it is a not-for-profit industry-based self-insurance scheme, owned by more than 147 WA local governments.

Mr Cook has been a LGIS board member for about eight years and according to the LGIS– OUR COMMITMENT TO YOU And JLT Financial Services Guide July 2020 booklet LGIS board members are paid sitting fees, compulsory superannuation, travelling expenses and other out of pocket expenses from the funds of the scheme, as determined from time to time by WALGA.

In light of this Yanchep News Online asked Mr Cook if in the interest of transparency and accountability he should disclose a financial interest when LGIS matters were raised during council meetings.

Citing section 5.60A of the Local Government Act 1995 – dealing with direct financial interests – the Shire of Gingin’s media response said the provision of advice by LGIS in the TopFun Aviation matter did not result in any direct financial impact on Mr Cook.

Quoting s.5.61 of the Act – dealing with indirect financial interests – the media response said in this instance LGIS was not the party seeking a local government decision, nor did council’s decision have any indirect financial impact on Mr Cook.

In relation to an impartiality interest the media response said along with other board members, Mr Cook’s role with LGIS was to consider high level, strategic issues.

“Board members are not involved in operational matters, in the same way that councillors are separated from the day-to-day functions of a local government,’’ the media response said.

“Advice provided by LGIS is a professional opinion provided by LGIS employees and is not something that board members have input into.’’

But the Department of Local Government, Sport and Cultural Industries (DLGSC) said when providing advice to council, local government chief executive officers (CEOs) and other officers were required to disclose any interests related to matters being determined by a council.

“While CEOs and officers don’t vote on matters before council and are therefore not required to leave the meeting if they disclose an interest, the Local Government Act 1995 requires that they disclose any relevant interest, for reasons of transparency and accountability.

“The type of interest that may need to be disclosed depends on whether there are financial implications for the CEO or officer resulting from their association with the organisation or person that has a matter for decision before council.’’

City of Wanneroo Mayor Tracey Roberts, who is also an LGIS board member, has declared financial interests when LGIS matters were raised during council meetings including on May 5 when Mrs Roberts declared a financial interest due to being a member of the LGIS board as WALGA president in an item about a contract dispute the city has with another party.

Then on September 22 Mrs Roberts declared a financial interest in a warrant of payments item – payment of the city’s insurance premiums – due to being an LGIS board member.

The Shire of Gingin reiterated that the provision of advice by LGIS such as that relating to the TopFun Aviation matter was part of LGIS’ day to day operations.

The response said LGIS officers provided professional advice on a vast number of matters to all member local governments and board members had no involvement in, or knowledge of, such matters.

“There are no implications, either beneficial or detrimental, to board members as a result of LGIS employees doing the job for which they are employed,’’ the response said.

In relation to the flying club’s applications Shire of Gingin President Wayne Fewster on March 17 disclosed an impartiality interest due to the existing flying club being run from a family relation’s property.

On October 20 Cr Fewster also disclosed an impartiality interest in the matter saying he had a family member involved with light aircraft and a distant relation who owns the Greenside airstrip.

Mr Cook has disclosed other interests this year such as on March 17 when as a staff member he declared a financial interest when the council was considering leave entitlements at the start of the coronavirus pandemic and on July 21 for being a fee-paying gym member when an amended development application was before the council.