NSW’s Liverpool City Council is set to be suspended after courts confirmed the council's alleged dysfunction warranted intervention. 

Justice Robson of the NSW Land and Environment Court has ruled in favour of Local Government Minister Ron Hoenig, who had moved to defer local elections and launch a public inquiry into the council’s operations. 

This decision was based on an Office of Local Government report, which raised serious concerns about maladministration within the council.

Liverpool City Council, which had contested the government's actions, has until today to respond to a notice demanding compliance. 

The ruling allows the NSW Government to suspend councillors and appoint an administrator if necessary.

Mr Hoenig welcomed the ruling, stating that the government’s decision to intervene was based on well-substantiated concerns, which were raised by a range of stakeholders, including council employees, community members, and state and federal MPs. 

He said that the inquiry is essential to “restore confidence in the council” and address the ongoing allegations of corruption and governance failures.

Justice Robson's judgement supported the Minister’s right to publish the interim report and clarified that the release of the report was not a breach of procedural fairness, as argued by the council. 

The court determined that the publication served to inform the public about the need for the inquiry, promoting government accountability.

The report had identified potential conflicts of interest in staffing and development decisions within Liverpool City Council. 

Among the concerns were allegations of improper hiring practices, irregular procurement processes, and mismanagement of large-scale projects such as the $400 million Liverpool Civic Place Project.

If the suspension is enacted, it will mark the sixth local government by-election in NSW this year. 

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