A Victorian council has been sacked after the murder of a senior employee sparked an investigation that uncovered dysfunctional leadership.

Moira Shire Council has been sacked after a commission of inquiry report found a litany of failures by a dysfunctional leadership, resulting in an unsafe and toxic workplace. 

The investigation came after the murder of a senior council employee in August 2021.

The report suggested the murder of Moira Shire Council manager of operations Rick Devlin in August 2021 could have been avoided.

Andrew Robert Paterson pleaded guilty in the Supreme Court last year to murdering Mr Devlin.

“Mr Paterson, the employee who murdered Mr Devlin, was set up by his co-workers at the depot and stood down in November 2019 following a false allegation of the theft of a small quantity of kerosene,” the report said.

The report said the allegation of theft was not substantiated, but was deeply resented by Paterson. His request for a voluntary redundancy was rejected.

“Had these events not occurred, it is questionable whether the subsequent course of events would have transpired,” the report said.

The report revealed governance failures dating back a decade, with widespread mismanagement leading to infrastructure delays and cost blowouts, as well as a steep decline in the community’s confidence in the council. 

Problems identified by the commission of inquiry include;

  • Council cannot effectively carry out its responsibilities because its governance has deteriorated

  • Council does not manage the performance of its CEO, who was found to have failed to fulfil key duties

  • The organisation has not ensured the health and safety of employees in its depots and other outdoor locations

  • The shire council transferred asbestos waste to stations not licensed to receive it, putting staff, contractors and residents at risk

  • The organisation left the town of Numurkah and its residents at serious risk of floods by delaying approved flood mitigation measures

  • Two major capital projects were mismanaged

  • The council does not work in the best interests of the whole shire under its current model for representation

The council will be put into administration for five years, and the facilities maintenance coordinator has been referred to the Independent Broad-based Anti-corruption Commission for directing more than $500,000 of work without a tender process to an Albury-based company that employed his son.

The commission has referred concerns about serious misconduct to Victoria’s anti-corruption commission and the evidence it collated on the employee's death to the state coroner.