Warrnambool city councillors distance themselves from organisational issues within council

Cr Mike Neoh said three long-serving councillors had "categorically denied" any knowledge of financial mis-use. He said Peter Hulin, Kylie Gaston and himself had been asked at a council briefing on Monday if they had any knowledge of "anything untoward and all said no".

Cr Neoh said he had spoken out to quell rumours councillors may have known about any financial wrongdoings within the council.

It comes after a senior officer paid back a sum of money spent on a council credit card, and later resigned.

"There has been quite a considerable amount of comment and conjecture, in various forms of media, about councillors from past council terms knowing about activity that was inappropriate and that they have been gagged due to confidentiality," Cr Neoh said.

"At a discussion this week all current councillors from past council terms - Crs Gaston, Hulin and myself - were asked if we were aware of any inappropriate activities in previous terms of council. The answer was no."

Cr Neoh said councillors were not and had never been gagged in terms of going to the local government inspectorate, local government ombudsman or IBAC.

"It is assumed that if any councillors from previous terms had information relating to inappropriate activities then they should have and would have reported the activity to the appropriate authorities," he said.

"Any councillors from previous council terms saying they were gagged is 100 per cent incorrect given they had avenues to report any inappropriate matter to the relevant authorities and through the correct processes.

"In fact it was their obligation to have done so - and if there is suggestions that they were aware of any untoward activity then why wasn't it reported to authorities?

"If councillors did know anything previously they should have went to the local government inspector."

Cr Neoh's comments come after former councillor and Warrnambool Ratepayers' Association president Brian Kelson called for the council to be sacked on Monday.

He said an administrator should be brought in to run the council and it needed an independent investigation as well as a forensic audit which went back over a 10-year period.