Phil Pinyon has resigned as Wagga City Council general manager after having been stood down from his role earlier this week.
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Mr Pinyon was stood aside following an explosive meeting of councillors on Monday regarding the Douglas Aerospace loan.
He was placed on leave with full pay while council furthers its investigation into matters raised by an external auditor’s report into the handling of the failed $2.5 million loan to Douglas Aerospace, which was approved in early 2012, before he opted to resign.
Council issued a statement late on Thursday afternoon advising Cr Pinyon had elected to resign.
“His resignation has been accepted and the council takes this opportunity to thank him for the services rendered to the council and the contribution he has made to the wider community.,” the statement said.
Councillors met on Monday for a three-hour meeting to discuss the external auditor report. The 10 councillors present – Andrew Negline was absent – voted unanimously for Mr Pinyon to be stood down.
One council source said the mood at the meeting was “sombre”, adding they felt “extremely concerned about all situations” following the gathering.
Another, however, told the Advertiser it was a “positive and enthusiastic” occasion and council was now “looking ahead and moving forward” from it.
Mr Pinyon spent the week considering his options before opting to resign late on Thursday afternoon.
Environmental and community services director Janice Summerhayes has been acting as general manager since Monday.
Mr Pinyon was appointed as general manager in February 2010, initially on a five-year contract, and had his tenure extended by the previous council in April 2012 until 2017.
Mr Pinyon’s decision to resign marks the latest bombshell in the troubled Douglas Aerospace saga, which has dogged council almost from day one.
After Douglas Aerospace announced it was consolidating its operations and moving to Wagga in mid-2011, council quietly announced it intended to loan the company $2.5 million and sub-lease it land at Wagga airport just two days before Christmas that year.
Cracks began to appear in the Douglas Aerospace operation in June last year, with revelations surfacing it was failing to meet its loan repayments before the company went into voluntary administration in May.
Council was eventually forced to cancel the loan after Douglas Aerospace went bust, leaving ratepayers $2.1 million out of pocket.
The Douglas Aerospace saga
February 15, 2010
Phil Pinyon takes the reins as Wagga City Council general manager following the resignation of Lyn Russell in October 2009.
September 26, 2011
Douglas Aerospace announces plans to move its operations to Wagga and says it will bring 40 jobs to the city.
December 23, 2011
Wagga City Council publicly announces its intention to loan Douglas Aerospace $2.5 million and sub-lease the company land at the Wagga airport, rent-free until 2017 and at market rates thereafter.
January 30, 2012
Councillors approve the loan and lease arrangements for the Douglas Aerospace hangar.
February 11, 2012
Julian McLaren, then the Wagga Business Chamber president, slams council for approving an "unsecured" loan to Douglas Aerospace when a bank would not.
April 2, 2012
Just two years into his five-year term as general manager, Phil Pinyon has his contract extended by councillors until 2017.
May 23, 2012
After initially announcing plans to move to Wagga Airport by April, Douglas Aerospace confirms its hangar will now not be operational until the end of the year.
July 2013
Douglas Aerospace begins operations at Wagga Airport following the construction of its first hangar. Director Doug Clarke says the company plans to build a further two hangars.
April 2014
The NSW District Court orders Douglas Aerospace to pay Indistri Engineering, the builder of their Wagga Airport hangar, $230,000 for unpaid progress payments, materials and interest.
June 28, 2014
Revelations surfacing Douglas Aerospace has missed around four months worth of scheduled repayments on its loan from Wagga City Council. Phil Pinyon refuses to answer questions put to him about the standing of the loan.
March 14, 2015
Following the District Court decision, Douglas Aerospace appeals to the Supreme Court who slashes the amount they are ordered to pay Indistri to $122,000.
May 4, 2015
Douglas Aerospace enters voluntary administration and defaults on its loan from council, $2.1 million in arrears.
May 22, 2015
A leaked internal auditor report reveals council was strongly advised against approving the $2.5 million loan, citing a number of "red flags" early in the process which were either "ignored or not acted upon appropriately".
June 27, 2015
Council calls in an external auditor to review the internal audit report over the Douglas Aerospace deal, at a cost of around $25,000.
July 7, 2015
Douglas Aerospace creditors vote to terminate the sub-lease of its Wagga Airport site and to give the company's plant and equipment to council to sell to Regional Express.
July 21, 2015
Council cancels its loan to Douglas Aerospace and announces plans to take back the hangar and lease it to Regional Express.
September 21, 2015
Phil Pinyon is stood down as council general manager following a meeting of councillors regarding the Douglas Aerospace external auditors report.
September 24, 2015
Phil Pinyon resigns as general manager of Wagga City Council.
