Warrnambool City Council leaders have been accused of silencing claims of fraudulent spending and cover-ups.

Residents’ advocacy group Ratepayers Victoria has written to the council, alleging that whistleblowers were lining up to provide “evidence to the inspectorate and IBAC (Independent Broad-based Anti-corruption Commission) directly”.

The Warrnambool Ratepayers Association has been accusing the council of systemic financial abuses for over a year.

The situation has escalated since it was revealed earlier this year that a council employee had misused a council credit card.

The staff member allegedly repaid $5,000 and then resigned.

Warrnambool City Council is running a series of reviews into the use of council credit cards, including an internal audit, an external audit, and a review by the Victorian Ombudsman.

The council has also allowed Local Government Minister, Adem Somyurek, to conduct his own investigation.

The Minister says he will not conduct his own review while the other audits are underway.

Ratepayers Victoria says “several staff” have raised allegations of fraudulent spending and cover-ups.

The group accuses high-level council employees of hiding financial misuse, having invoices altered invoices, using council resources for personal benefit, and hosting “parties and events” on ratepayers’ money.

The council “allegedly sought to investigate staff who may have obtained evidence ... in an attempt to expose the significant alleged behaviour”, the letter states.

“Some staff have levelled allegations of intimidation and bullying for trying to expose the truth,” te group alleged.

Ratepayers Victoria president Dean Hurlston said the whistleblowers must be protected.

“These people need to be protected and the facts need to come out,” Mr Hurlston said.

“We are not saying that we have evidence ourselves to say that this is true, but we certainly think there [are] credible facts and claims behind all of this and it needs to be fully investigated.

“It's time for council to throw open the doors, open the books, and ensure that every single staff member has the ability to tell what they know and expose what happened.

“They have contacted us to try and gain some assistance in exposing what they feel is an unjust situation.

“They have tried in the past to raise allegations and are now finding themselves the target of some recrimination or feedback from council that it's not acceptable.

“What we're concerned about is that staff now may be the target by Warrnambool City Council of any investigation where they have simply tried to protect themselves and prove that they have tried to raise these issues.”

Council CEO Peter Schneider said the allegations were news to him.

“None of the allegations raised in the letter from Ratepayers Victoria have been reported to me in the past seven months,” Mr Schneider said.

“Over recent months, council staff have been made aware of the channels available to them through which they can voice any workplace concerns.

“Those who have concerns and evidence are encouraged to take action, either through their manager, director, myself or external referral agencies.

“Council is fully cognisant of its reporting obligations to referral authorities and they will always be adhered to.

“It is my intention to have a workplace where people feel confident about raising any concerns they may have.”

Warrnambool Mayor Tony Herbert agreed.

“I would think that anyone that has anything to say or add to the situation [has] every opportunity ... especially with a new CEO, who has said on a number of occasions that he's really willing to speak to any staff member that wants to speak,” Cr Herbert said.

“I've found him a very honest and open individual and very, very easy to talk to.

“I would imagine that if it was me, he would be the first port of call if I had any situation ... he would be the person that I would speak to first.”