The GM of a Melbourne council has resigned claiming it has become an “unsafe work environment”. 

The Latrobe City Council has accepted the findings of an independent panel which found councillor Melissa Ferguson made abusive and threatening statements in a council meeting.

Cr Ferguson allegedly made abusive statements towards staff, accusing some of “appropriation of funds, fraud and missing money”.

“I believe that my constituents who were affected by bushfire have been dudded, and I would like to see more about this and where this money went,” Ms Ferguson told the meeting. 

The council's former general manager, Suzanne Miller, says she resigned as a direct result of the interactions with Cr Ferguson.

Ms Miller reportedly said she could “no longer ensure the safety of relevant council staff in performing their roles”.

She said her resignation was a “culmination of events over a long period of time”, including ongoing bullying.

“Ms Miller told the panel her staff were fearful of councillors, and that this fear was indicative of an unsafe work environment,” the report found.

The inquiry made a finding of misconduct against Cr Ferguson, but could not substantiate allegations of bullying.

The report noted another councillor is still struggling to cope with a separate councillor briefing in 2021 involving Cr Ferguson.

“The exchange left her feeling unsafe and vulnerable, so much so that she requested all briefing meetings be recorded moving forward,” the report found.

The report comes as the Victorian government launches a review into culture in local government, which will look closely at claims of poor councillor behaviour and training.