Suspended Cootamundra-Gundagai Regional Council general manager Allen Dwyer has been given 15 days to explain why he should not lose his job.
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The notice was given at an extraordinary council meeting on Monday night.
A Cootamundra-Gundagai Regional Council statement claimed investigations undertaken on behalf of the council had allegedly uncovered a series of breaches of the Local Government Act.
"At last night's meeting the council passed a recommendation empowering the mayor, Cr Abb McAlister, to write to Allen Dwyer asking him to show cause why within 15 days his employment should not be terminated without notice or payment in lieu of notice," the statement read.
Earlier, in a closed meeting, the council met lawyers Williamson Barwick who presented a report based on investigations by Pinnacle Integrity.
Mr Dwyer was suspended with pay in November over allegations related to his previous job with Hay Shire Council.
Later that month, Cootamundra-Gundagai raised concerns around Mr Dwyer's unauthorized spending of about $1 million on a refurbishment of Cootamundra Civic Centre and a community group's tractor.