The Kiama Council CEO has referred three councillors to ICAC over allegations of corrupt conduct.

The referral follows developments revealed in NSW’s Land and Environment Court proceedings involving Vortex Developments Pty Ltd, trading as Plannex Environment Planning, and the Council of the Municipality of Kiama.

The case in question revolves around the council's refusal to approve a development application for a micro abattoir.

The referral was made under Section 11 of the ICAC Act, which mandates that a principal officer of a NSW public authority must report any matters where there is reasonable suspicion of corrupt conduct. 

The councillors implicated, including Karen Renkema-Lang, Kathy Rice, and Jodi Keast, have denied any wrongdoing. Councillor Renkema-Lang says some of the allegations made to media outlets “were plainly wrong”.

Cr Rice welcomed any oversight, saying; “I maintain my commitment to improving governance and transparency in decision making on Kiama Council”.

Cr Keast echoed this sentiment, saying; “I have always declared potential, perceived, and actual conflicts of interest and managed these appropriately, including this particular instance in 2022”

The referral comes just three months before the NSW local government elections, leading to speculation about potential political motivations. 

Councillor Renkema-Lang referred to past comments by ICAC Commissioner John Hatzistergos, who cautioned against using referrals to the commission for political advantage, especially in the lead-up to elections.

Kiama Council's financial management has also been under scrutiny, with former local government minister Wendy Tuckerman having issued a performance improvement order in November 2022 due to concerns about the council's ability to repay debts from constructing the Blue Haven Bonaira aged care facility. 

An audit in October 2023 revealed significant accounting errors, overstating the council's financial position by $41 million. 

Current Local Government Minister Ron Hoenig has also expressed concerns about the council's slow progress towards financial stability.

The council predicts an operating deficit of $5.4 million for 2024-25, but expects to return to an operating surplus by 2026-27.