AN EXPLOSIVE report has emerged casting grave doubts on council’s decision to loan more than $2 million of ratepayer money to Douglas Aerospace.
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The company sensationally fell into voluntary administration earlier this month, raising questions over whether due diligence was taken when loaning Douglas Aerospace $2.5 million in early 2012.
A 32-page internal auditor’s report, leaked to the Advertiser, reveals council was strongly advised against loaning the company money.
“It is evident there were numerous warning signs and ‘red flags’ at the early stages of the process, which were either ignored or not acted upon appropriately,” the report concluded.
Cr Andrew Negline said it was critical council reacted appropriately to the report.
“It is a confidential, internal document, but has identified some burning red flags that we, as councillors, need to take note of and the general manager needs to review the processes and ensure such things don’t happen again,” he said.
Cr Julian McLaren echoed his sentiment of three years ago when he publicly opposed the loan as Chamber of Commerce president.
WWCC general manager Phil Pinyon said reports, market assessments and industry letters of support from potential customers informed council’s involvement with Douglas Aerospace. Mr Pinyon said council resolved in January 2012 to financially support the construction of the paint shop building at the Wagga Airport after considering a confidential report on the matter, but said both staff and councillors were not permitted to discuss or reveal confidential matters. Mr Pinyon said the report was confidential and leaking it was a breach of the Local Government Act.
