Loophole closed after rare private prosecution shuts Hepburn council

In short:

The Victorian parliament has made legislative changes to protect councillors from untested private prosecutions.

Earlier this year, a businessman brought charges against five Hepburn Shire Council councillors, who were forced to stand down.

What's next?

Councillors across the state have welcomed the changes to the Local Government Act.

The Victorian parliament has acted to close a loophole that allowed an untested private prosecution by a private citizen to shut down the Hepburn Shire Council.

Earlier this year, Hepburn businessman David Penman levelled charges against five Hepburn Shire councillors and the chief executive officer in a rare private prosecution.

Mayor Tony Clark, councillors Don Henderson, Shirley Cornish, Pat Hockey and Lesley Hewitt, and chief executive officer Bradley Thomas were charged with misuse of public office offences relating to allegations they adopted the annual budget without certain financial documents.

Under the Local Government Act, all five councillors had to stand down until the matters were dealt with in court, meaning the council could not function without a quorum.

Opponents accused Mr Penman of weaponising a loophole in the act to effectively shut down the council.

The Director of Public Prosecutions ultimately intervened and had the charges withdrawn, allowing the five councillors to return to their roles.

Rural Councils Victoria deputy chair Kate Makin, who is also Corangamite mayor, said the case exposed a threat to procedural fairness and democracy.

"Someone found the little door was ajar, and decided that that's how they were going to stand down these councillors,"

Cr Makin said.

Now, under changes to the Local Government Act, a councillor will only be automatically stood down in cases involving criminal proceedings underway, or when a law-enforcement agency is involved.

The amendment has passed the upper house of parliament.

"It just showed that if it could happen to one council it could happen to all of the councils across Victoria," Cr Makin said.

Wish it happened sooner

Cr Clark was caught up in the failed prosecution.

The Hepburn mayor said the new safeguard was a welcome relief for all councillors in Victoria.

"It's fantastic it's done, but I certainly would have hoped it had been fixed a little earlier than it was.

"It's a great sense of relief for our community.

"[It] gives all councillors right across the state a bit more confidence about their role and their ability to be able to act democratically and appropriately," Cr Clark said.