FORMER Central Goldfields Shire Council chief executive Mark Johnston has been convicted and fined $26,000 in relation to misuse of a corporate credit card and obtaining financial advantage by deception.
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Mr Johnston pleaded guilty to all five charges before the Maryborough Magistrates’ Court court, which related to 112 transactions charged to a council credit card between August 13, 2009 – September 13, 2013.
The total sum Mr Johnston dishonestly obtained for himself during those four years was $9415.71.
Magistrate Megan Aumair took into account Mr Johnston’s service to the community in her sentencing, as well as the remorse indicated by his guilty plea.
She said the court proceedings had painted a ‘clear picture of a hard-working family man, a dedicated member of the local community with a strong sense of social justice’ who was ‘determined to do the best for Maryborough’ both in his paid and voluntary roles.
“His commitment to those organisations and the community cannot be questioned,’ she said.
Ms Aumair also took into account the need to denounce the former chief executive’s actions.
She said Mr Johnston committed a multitude of deceptions over a significant period of time, breaching the trust of the community he served – “one of the most disadvantaged communities in the state”.
While she said some of the matters before the court were more blatantly deceptive than others, they were still deceptive.
Most of the offending related to buying meals. Some of the meals were for family members.
When challenged on his use of the council credit card, the court heard Mr Johnston believed himself justified because he would meet business people and discuss council business during those meals.
He also said his family members were helping him ‘sell’ the shire by demonstrating its family-oriented nature.
Mr Johnston claimed some of the expenses were related to meetings, of which investigators said there was no evidence.
In addition to demonstrating remorse, the magistrate said the guilty pleas meant accepting the conduct was dishonest.
The magistrate said Mr Johnston was formerly well regarded within the community, and well paid in his role.
She said Mr Johnston’s reputation was ruined and his future employment prospects were uncertain as a result of the offending.
In addition to the convictions and fine, Mr Johnston was ordered to pay $10,000 in prosecution legal costs.
The Local Government Inspectorate, which brought the charges upon Mr Johnston, said local communities had the right to expect the highest levels of integrity from their council’s senior administration.
“In this case, the former CEO deceived the community to his own advantage and the courts have applied an appropriate penalty,” LGI Chief Municipal Inspector David Wolf said.
“This closes out a difficult chapter for Central Goldfields Shire Council and the council can continue to rebuild trust with the community.”
Mr Johnston became the council’s chief executive in April 1995.
He was indefinitely suspended in July 2017, after the LGI laid charges, and resigned the following month. By that stage, the state government had sacked the elected council in relation to financial and governance failures.
The council was replaced by administrators. A new chief executive and executive team were appointed in the first half of this year.
The LGI is the lead integrity agency for local government in Victoria.
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