Warrnambool City mayor Tony Herbert says he called watchdog in over CEO Peter Schneider's sacking

Cr Herbert said he had referred details of some councillors' actions in the lead up to Peter Schneider's sacking to the Local Government Inspectorate.

He said he made contact with the inspectorate before Mr Schneider was ousted.

The inspectorate, which acts as a local government watchdog, has now confirmed it is investigating Mr Schneider's sacking, although Warrnambool City Council says it is yet to be contacted about the probe.

"I, in my role as mayor, have referred to the Local Government Inspectorate details of actions of some councillors in the lead up to the termination," Cr Herbert said in a statement.

"It is not up to me to judge the extent of any wrongdoing on their behalf but I can confirm that the Inspectorate will be investigating their actions.

"At this stage I am unable to comment as to whether or not there may be a civil case for the council to answer as a consequence of the sudden and unexplained termination of the CEO."

Councillors Sue Cassidy, Mike Neoh, Kylie Gaston and David Owen voted to terminate Mr Schneider's position at a closed meeting in July.

At the time the four councillors stated community and staff surveys showed the "organisation's communication and engagement as being both lacking and dismissive", while a 2040 city plan was "neglected and stripped of resources", but their exact grounds for triggering the dismissal are unknown.

Cr Herbert said community sentiment following the vote indicated "extreme displeasure at the manner in which this matter has been handled".

He said the council had followed best practice guidelines in monitoring Mr Schneider's performance.

An independently chaired CEO performance committee and a CEO consultant monitored performance at quarterly intervals. Cr Herbert said the council had endorsed their recommendations "on every occasion".

"Just two months after the major 12 monthly CEO review and assessment, some councillors chose to then terminate the CEO with no reason, without mediation, without discussion or apparent consideration of the substantial costs in doing so," he said.

Cr Herbert said both the consultant and independent committee chair had since resigned.

"It is with significant disappointment that during such difficult times within our city that these councillors have decided to act in a manner which totally ignores the impartial and lengthy reviews of the CEO by the special CEO performance committee," he said.

"With worldwide messages of coming together to support each other through the seemingly worsening challenges of the pandemic, some councillors resolved to take quite drastic and expensive action in relation to managing the CEO.

"Unfortunately these events might now discourage good people from applying for a future CEO position at Warrnambool City Council.

"It will also be a significant cost to the city, at a time when council budgets are already under great pressure."

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