LOCAL Government Minister Paul Toole said he was prepared to sack Hurstville Council if he deemed it necessary to restore public trust.
The minister has requested an immediate section 430 investigation into the operations of Hurstville Council.
A section 430 investigation allows an examination into any aspect of a council or its work and activities.
The Office of Local Government website states such an inquiry is used "if a council's conduct is having a serious impact on the local community".
When asked last Friday if he was prepared to sack the council, Mr Toole told 702 ABC Sydney he would "take the measures needed to restore public confidence".
"Obviously, I'll wait and see what that report [from the Office of Local Government] says, but this government introduced early-intervention powers to be able to take action against councils and individuals," Mr Toole said.
"We will get the facts and if I have to use those powers, I can tell you right now I will have no hesitation in doing so."
Mr Toole said he was concerned the council's decision last Wednesday night to stand down general manager Victor Lampe would lead to a loss of confidence within the community.
"I'm concerned about whether [the council] has lost public confidence and whether or not they're able to serve their community with the interests of the community at heart," he said.
"That community has a right to feel very disturbed over those allegations that are coming out. What I saw from the actions last [Wednesday] night is certainly very worrying indeed."
The chief executive of the Office of Local Government is also investigating the alleged misconduct of mayor Con Hindi.
"Obviously when you've got someone in public office, someone who is in a position of community trust and someone who is a mayor and a vice-president of Metro Local Government NSW, these allegations are very serious," Mr Toole said.
"I've asked the Office of Local Government to put resources in there at the moment — they're not going to let this go and they are going to follow this up."
Opposition spokesman for local government Peter Primrose called for immediate action.
"Mr Hindi's position as mayor is completely untenable," he said. "[He] must stand aside immediately.
"Until this mess is sorted out, it is unacceptable for Mr Hindi to remain in his position as mayor."
FORCED TO MERGE
Hurstville Council could find itself in a forced amalgamation if Local Government Minister Paul Toole dishes out stern punishment.
If Mr Toole sacks councillors and brings in an administrator, the council will need to hold a by-election — an expensive exercise, particularly as council elections are due in September.
The situation could become a test case for the state government’s amalgamation plans.
Rockdale Council, the only St George council that is pro-amalgamation, would undoubtedly be happy to accept Hurstville into its fold.
A council insider who did not want to be named said: ‘‘Why spend $1 million on two elections in one year — why not get Rockdale to look after Hurstville? That would be a windfall for the ratepayers and the government.’’
Philip Sansom, a councillor for 24 years and a former mayor, said the best outcome for the council would be for the minister to issue a caution and to intervene.