Victoria’s local government watchdog is continuing to take action against the Central Goldfields Shire.

A damning report by the integrity agency, the Local Government Investigations and Compliance Inspectorate, led Victoria’s former Local Government Minister Natalie Hutchins to sack the seven-member council in August.

The council was given 28 days to respond and enact improvements, but was then dismissed just five days later.

The sacked councillors they have been treated as scapegoats.

“I've been a councillor 21 years,” former mayor Geoff Lovett told the ABC.

“I've given a lifetime of service to this community. For us to be sacked in the way we were sacked is both disappointing and I believe an affront to democracy.

“The Minister acted very underhandedly, we didn't deserve this.”

CEO Mark Johnston led the council for 22 years before the inspectorate alleged he used council funds for personal use.

He is now facing criminal charges in Maryborough Magistrates Court on 41 offences dating back 14 years.

No charges have been brought against any member of the council.

The inspectorate also reported on governance issues at council, including the underselling of properties and missing flood recovery grant funding.

“I always had concerns of the financial mismanagement before I went into council,” former councillor Helen Broad said.

“They seem to pay a lot of rates and not get much for it.”