City CEO, Director Infrastructure and Environment stood down over Ombudsman’s report

CITY of Ballarat CEO Justine Linley and Director Infrastructure and Environment Terry Demeo have been placed on indefinite leave following the release of a report by the State Ombudsman into their conduct.

The report tabled in State parliament today lists a range of substantiated and unsubstantiated allegations related to improper hiring practices by both, as a well as improper purchasing and tender processes and misuse of a council purchasing card by Mr Demeo.

Ombudsman Deborah Glass said the investigation came about after eight whistle-blower’s complained to her office, “first alleging a director was hiring his mates, then alleging his boss was hiring hers.”

The hiring practice allegations regarding Mr Demeo relate to three former colleagues from his time at Geelong council that subsequently gained employment or contracted work with the City of Ballarat.

While the allegations leveled Ms Linley focus on her hiring of six people described in the report as “six friends and/or former colleagues to senior positions at council.”

A statement released by the City of Ballarat said, “The Council is deeply concerned and disappointed by the allegations and the findings of the Ombudsman’s report. Such allegations do not align with the City of Ballarat values and governance practices.”

“To ensure fair and due process, council CEO Justine Linley, is on leave while the council is considering its formal response to the Ombudsman’s report. Mr Demeo will also be on leave after today.”

Director of Community Development Neville Ivey, the man currently leading the response to the COVID-19 pandemic, has been appointed Acting CEO.

“While the Council is considering its formal response, it would be inappropriate to comment further and as such, the Council will not be making any further comment on the matter,” the statement from council said.

Read the full ombudsman’s report here.

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