Bayside Council hits back after finances questioned

It comes after resident group Bring Back Botany Bay released a media statement that the amalgamation was a dud deal.

“The City of Botany Bay was debt free for more than twenty years yet in its first three months Bayside Council has already managed to rack up $1.1 million in debt with nothing to show for it,” the statement said.

“Worse still, the new council has thrown away more than $5 million on this merger with $1.8 million spent on executive services, $1.45 million spent on people and organisational culture and $2.4 million spent on transition change.’’

Mr Wright, who called in the Auditor-General to go through Botany’s finances, said at the end of the last financial year the former council revealed it held $94.4 million in investments and cash.

‘’Unfortunately that was $400,000 less than had been collected from developers and ratepayers to fund specific programs,’’ he said.

‘’That money should not have been spent on day to day operations. It should have been held in what are called ‘restricted reserves’.’’

He said that was equivalent to a company trading while insolvent or a solicitor using monies held in their trust account to fund the running of their business. 

Me Wright said going into the merger Rockdale could put $55 million of debt free, unrestricted money on the table while Botany put in an IOU for $400,000.

‘’Council’s financial statements are complex and can be difficult for a non accountant to interpret,’’ he said.

‘’Bring Back Botany Bay have misunderstood or misinterpreted the first quarterly financial report for Bayside Council.’’

He said the amounts mentioned by the group were not new costs and instead were a redistribution of existing funding.

Bring Back Botany Bay spokespeople Marie and Geoffrey Nilon said they were deeply sceptical of any claims that Botany Bay did not have substantial reserve funds.

They are calling on council to release further financial details.