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Central Goldfields Shire CEO Mark Johnston has been stood down indefinitely from his position following a meeting of councillors behind closed doors last night.
Johnston, who is facing 41 charges of obtaining financial advantage by deception, false accounting and conflict of interest brought by the Local Government Inspections and Compliance Inspectorate, was officially informed of the decision by CGSC mayor Geoff Lovett on Thursday morning.
Council’s general manager of technical services David Sutcliffe has been appointed acting CEO until July 31, when former CEO of Maribyrnong City Vince Haining will take over as interim.
Cr Lovett said the Mr Johnston was stood down on full pay and entitlements, and when informed of the decision stated categorically that he was innocent and would fight the charges.
“In what was obviously a difficult meeting for both of us, Mr Johnston behaved with a professional disposition,” Cr Lovett said.
“It was incumbent on us to show strong leadership to both the community and the council executive.
“The appointment of an outside CEO was necessary because of the situation. We need someone who has no baggage and clear eyes, who is going to make objective and logical decisions.
“Mr Haining comes to the job as a very highly-regarded, very experienced person – highly regarded within the MAV (Municipal Association of Victoria) and in the community generally.
The council’s decision, which was not unanimous, was guided by legal advice from Macquarie Local Government Lawyers solicitor Terry Bramham.
“The presence of Mr Bramham in the meeting last night was a comfort to councillors and he answered many questions,” said Cr Lovett.
Cr Lovett stressed the appointment of an outside CEO in no way impugned the reputation of council’s executive workers, and that he had made that point to them in a meeting.
It has been revealed Local Government Minister Natalie Hutchins has also decided to reinstall municipal monitor Bill Jaboor to the CGSC.
Mr Jaboor had previously overseen council management for three months from October last year, and delivered a report critical of many aspects of what was taking place at the council.
The charges against Mr Johnston are the first to be laid under the Crimes Act against a current CEO in Victoria.
