The controversy surrounding the Hepburn Shire Council in Victoria, Australia has reached a critical juncture as five of its councillors and the CEO have been compelled to stand aside following private prosecutions initiated by David Penman, a Daylesford small business owner. The unprecedented move has brought local governance to a virtual standstill, with only two of the seven elected representatives able to serve. This extraordinary situation is a direct result of a provision within Victoria's Local Government Act 2020, which dictates that councillors facing criminal charges must relinquish their positions while legal proceedings are underway.
The private prosecutions, led by Mr Penman, primarily centre on allegations that the council acted unlawfully when adopting its most recent budget without including necessary financial documentation. While day-to-day services such as rubbish collection and library operations remain unaffected, the absence of a quorum has left the council in limbo, unable to make significant decisions. Councillor Brian Hood, one of the two remaining active councillors, has urged the Minister for Local Government, Paul Hamer, to intervene swiftly, hinting that the state government might need to appoint an administrator to ensure community representation.
The Hepburn Shire Council has expressed "bitter disappointment" over the impact of these private prosecutions on the community's right to representation. A council spokesperson noted that the charges were not preceded by any prior investigation or assessment from Victoria Police or public prosecutorial authorities, and that the council is restricted in its ability to publicly disclose information due to ongoing court proceedings.
In response to this unprecedented situation, the Victorian government is reportedly reviewing Section 229 of the Local Government Act. Proposed amendments would differentiate between charges brought by official bodies and those initiated by private individuals, requiring councillors to stand down only for serious charges laid by statutory authorities while allowing private prosecutions to proceed through the legal system without immediate removal from office. The aim of these changes is to prevent similar disruptions to local government in the future.