Key facts
- A small business owner, David Penman, has initiated private prosecutions against five councillors and the CEO of Hepburn Shire Council in Victoria.
- The prosecutions stem from allegations that the council unlawfully adopted its budget without required financial documents.
- Under Victorian law, councillors facing criminal charges must step down, leading to a lack of quorum at Hepburn Shire Council.
- While daily operations continue, the council is unable to make significant decisions due to the quorum issue.
- The Victorian government has expressed concern and is considering legislative changes to address the impact of private prosecutions on local government.
David Penman, a small business owner in Daylesford, Victoria, has launched private prosecutions against five councillors and the CEO of the Hepburn Shire Council. This action, based on a little-known provision in the Local Government Act 2020, requires councillors facing criminal charges to step down, effectively paralyzing the council's decision-making capabilities. Only two of the seven councillors remain able to serve, preventing a quorum.
The charges primarily allege that the council unlawfully adopted its most recent budget without including necessary financial documents, with Penman asserting his actions demonstrate "democracy functioning through the rule of law" and ensuring accountability for elected officials.
Hepburn Shire Council has stated that the private prosecutions are "disrupting democracy" and that these matters have not involved any investigation by Victoria Police or public prosecutorial authorities. Councillor Brian Hood confirmed the council's inability to make major decisions, though essential services continue. He noted the council is "in limbo" and suggested the state government might appoint an administrator.
The Victorian government has expressed concern and is considering legislative changes to Section 229 of the Act. Proposed changes would require councillors to stand down only if charges are laid by police or a formal statutory authority, not private individuals. The Minister for Local Government has been urged to intervene to resolve the situation.