‘Witch hunt’: Former City of Perth chief executive slams unexpected sacking

Sacked City of Perth chief executive Michelle Reynolds says she hasn’t heard from Lord Mayor Bruce Reynolds since she was put on suspension in May.

Addressing the media on Wednesday afternoon, a tearful Reynolds said it would have been a kindness to hear from her former colleague throughout the months-long investigation into her.

“I have not heard personally from the Lord Mayor since I received an email at 11pm at night advising me that I was suspended. I have had no communication at all,” Reynolds said.

“[It would have been] a kindness given the circumstances where I have had a limited ability to talk to everyone.

“I have had no access to any city staff, and I am only allowed to talk to two people – one family member and one support person. What has happened to me is disproportionate to the allegations that have been made.”

Reynolds was formally sacked following a behind-closed-doors council meeting on Tuesday night.

Minutes from the meeting say that council voted 5-2 in favour of “option C in the confidential options report” but did not say what that option meant.

Councillors Catherine Lezer and Adam Pacan voted against her sacking while councillors Vicktor Ko and Raj Doshi weren’t at the meeting.

In the press conference, Reynolds said she has been formally dismissed, which means she will not get any severance pay.

“I have been dismissed, and I have been asked to return my laptop, and they’ll pack up my belongings and ship them to my house in due course. It’s brutal and disproportionate,” she said.

The council previously voted to suspend Reynolds from her duties in May following a confidential meeting by Local Government Inspector Tony Brown to discuss a report into claims levelled against the chief executive.

In a brief statement to media on Wednesday, Perth Lord Mayor Bruce Reynolds (no relation to Michelle), said the move to sack the chief executive was a “significant decision” that council “did not take lightly”.

“The investigation examined a range of matter relating to Ms Reynolds’ conduct in exercising her responsibilities as chief executive officers,” he said.

“Following careful consideration of the investigation findings, and Ms Reynolds’ responses, Council determined that the substantiated findings were sufficiently serious that her employment as chief executive officer should be terminated.

“I recognise that the community will want to understand more about council’s decision.

“However, this remains a confidential employment matter and there are legal, privacy, and confidentiality obligations that limit what council can appropriately discuss publicly.”

Reynolds said the findings of the investigation and allegations against her were “nothing but a witch hunt designed to impinge my reputation and scapegoat me by an otherwise toxic council and likely cost the rate payers handsomely”.

She confirmed she intended to challenge the decision and would take it “all the way”.

“I have to take it all the way because … I have worked really hard and my reputation is the most important thing to me, and to think that someone didn’t like something about me, that just seems so unfair. I feel like I’ve been a scapegoat for this dysfunctional council,” she said at the press conference,” she said.

In a statement sent to this masthead, Michelle Reynolds said she had been shocked when she was informed of the decision late on Tuesday night via her lawyers, following a “protracted four-month investigation process”.

“It is particularly concerning that a local council presently the subject of an inquiry into their own governance issues, breaches of confidentiality and outright dysfunction, and who have been the subject of no less than 25 complaints since the start of this year, were permitted to make such an egregious decision,” she said.

“The allegations made against me are individually trivial in nature, however are alleged to collectively amount to serious misconduct. I disagree.

“The allegations and subsequent investigation process have exposed the factionalism between the views of elected members with personal agendas and the effective function of the administration of local government as a multimillion-dollar business.”

Michelle Reynolds said she held significant concerns regarding the initiation and conduct of the investigation, including the procurement process for the firm that conducted the investigation, and the conduct of certain council members.

“Those concerns include targeted leaks of confidential information to the media designed to defame me,” she said.

“The dysfunction and harmful behaviours at the City of Perth, in particular amongst the elected members, is no secret and having been bound by confidentiality throughout the investigation I am now able to speak freely about my experiences and challenging relationship with certain members of council and intend to do so.”

Speaking to media on Wednesday, Bruce Reynolds said he recognised it had been a “difficult and unsettling period for all concerned”.

“Our focus now is on providing certainty for our employees and ensuring the city continues to deliver for our community, business and visitors,” he said.

“Council will maintain interim leadership arrangements while we commence the recruitment process for a new chief executive officer.

“The current leadership has provided great stability during this time, and we will remain focused on working collaboratively to strengthen governance and workplace practices across the organisation.”

Former City of Perth Lord Mayor Basil Zempilas said it was “outrageous”.

“That beggars belief that … it has happened,” he said.

“Frankly, when I heard the news, I was stunned that a council under investigation for dysfunction and for governance issues could dismiss the CEO … in a behind closed doors council meeting, with no opportunity to go to speak, to put her case, to understand what it is that she has been dismissed for.

“After a distinguished career, just being shown the door in those circumstances – that’s appalling treatment.

“I’m deeply disappointed to see how far the City’s standing has fallen in such a short space of time.”

Zempilas said ratepayers would be on the hook for covering the cost of the process to the tune of “very close to $1 million.”

He also slammed Local Government Minister Hannah Beazley over comments made regarding Reynolds’ dismissal.

“I have made it very clear that I have zero tolerance for dysfunction, zero tolerance for poor governance and zero tolerance for unsustainable financial management,” Beazley said.

“To ensure the requirements under the Local Government Act were adhered to, the Local Government Inspector will be conducting a review of the process that resulted in the dismissal of the CEO as part of his inquiry into the City of Perth.”

Zempilas said that was “utterly laughable”.

“How disrespectful to a senior public sector officer to say, well, her dismissal will now be part of the inquiry that the inspector is undertaking, that is putting the horse well and truly after the cart. That’s an outrageous way to conduct these affairs,” he said.

Last week, it was revealed the council would be subject to another inquiry at the hands of the local government inspector.

The revelation of the three-month, $120,000 inquiry came after the conclusion of a local government monitor’s term overseeing the council.

Perth was the first council to be allocated a monitor just two weeks into Brown’s role as the head local government watchdog at the start of the year.

“The City of Perth is the flagship local government of Western Australia, so it needs to be the leader in governance,” Brown said last week.