THE fallout into an ill-fated council loan continues, as the mayor declares the leaking of an explosive confidential letter will be referred to the corruption watchdog.
The letter from mayor Rod Kendall to former general manager Phil Pinyon, obtained by the ABC, suggests Mr Pinyon’s mismanagement over a $2.5 million loan to a Wagga-based aviation company exposed council to unnecessary risk.
It accused Mr Pinyon of failing to act promptly after loan repayments defaulted and cited a “damning” external audit report into the loan. It is believed Mr Pinyon stood down three days after receiving the letter.
An email trail seen by the Advertiser shows deep concern among senior councillors into who leaked the letter and how its release could accelerate parts of the audit report being made public.
Mayor Rod Kendall said leaking confidential council material was an offence and the matter would be reported to the Independent Commission Against Corruption (ICAC).
“Council has a confidentiality agreement,” Cr Kendall said. “An individual along the line has breached that. It is an ICAC-reportable offence.”
Councillors have publicly called for the fast-track release of the audit report, but Cr Kendall said he could not elaborate on the matter other than that the Douglas Aerospace Review Committee would meet this week to make a decision.
Cr Kendall could not confirm whether councillors were aware of the letter and said he had “no idea” whether he thought the leak was from an elected official or staff member.
