The Liverpool City Council has been given a week to justify why it should not be suspended.

An interim report from a recent investigation uncovered numerous issues within the council, including direct interference from the mayor and councillors in development applications and other regulatory activities. 

It found a “toxic culture” characterised by gender bias and significant complaints, with council staff being “abused” in public.

Additionally, the investigation uncovered a pattern of direct appointments bypassing merit-based processes, and instances where family members of senior staff were appointed to roles. 

There were also allegations of council policies being intentionally bypassed or ignored, including in the procurement process where a consultant was paid $1.4 million without compliance.

Specific concerns were also raised about the city’s $400 million Civic Place Project and the council’s average development assessment timeframe, currently at 210 days, compared to the state-wide average of 111 days.

The sacked CEO John Ajaka was allegedly denied procedural fairness, a matter now referred to the NSW Independent Commission Against Corruption (ICAC) due to potential maladministration or corrupt conduct.

The United Services Union, representing local government employees, has welcomed the inquiry. 

Acting Liverpool City Council CEO Jason Breton says that the council will “continue to cooperate” with the ongoing investigation and the public inquiry.

However, Liverpool City Council Mayor Ned Mannoun called the report “purely political” and vowed to explore legal options to ensure the September elections proceed as planned. 

“It's not surprising that I'm a Liberal and they're Labor,” he said, rejecting allegations of improper lobbying and asserting the council's positive turnaround under his leadership.

Should the council be suspended, an interim administrator would be appointed, potentially delaying elections until after the inquiry's completion. 

This process could take several months.