A suspended NSW council could be reinstated within weeks. 

The NSW government is considering allowing banned Wingecarribee Shire councillors to return to council chambers for three months until the next polling day. 

However, it is also considering launching a public inquiry into allegations of financial mismanagement and cultural issues at the council. 

Council administrator Viv May has written to Local Government Minister Shelley Hancock to call for an inquiry into the suspended administration.

“I have formed the view that the suspended council has failed the community in the exercise of its functions, provision of core services, decision-making, community participation, financial management and its responsibilities in relation to integrated planning and reporting,” Mr May wrote.

He said officials faced “a toxic workplace with substantiated allegations [about] bullying, preferential treatment and an organisation structure built on personality not community.”

Mr May said that the council “took the position that it was above the law” in his view, pointing to a series of dubious loan agreements and staff hiring arrangements.

An initial three-month suspension was imposed earlier this year after the council failed to abide by a performance improvement order. Ms Hancock doubled that original term following an interim report by Mr May. 

The suspension period is due to expire in early September, which is when local government elections would have been held. However, an ongoing COVID-19 outbreak has pushed the polling back until December.

A local community group, Friends of Wingecarribee, has written to Ms Hancock to ask for the suspension to be extended and an inquiry to be launched.

The Minister is yet to make a decision.