In short:
Three Kiama councillors deny they acted in appropriately in declarations and voting on a development application.
The council's chief executive has referred the councillors to the Independent Commission Against Corruption.
What's next?
The matter is unlikely to be resolved until after the September local government elections.
A NSW councillor has denied any wrongdoing after she was referred to the corruption watchdog by her council, suggesting the referral could be politically motivated in the lead up to the local government elections.
Kiama Council confirmed it had referred three of its councillors to the Independent Commission Against Corruption (ICAC).
It came after information emerged during proceedings in the NSW Land and Environment Court regarding the council's refusal of a development approval for a micro abattoir.
Councillor Karen Renkema-Lang said she was shocked when she discovered through the media that she was one of the councillors.
She said she was dismayed to learn via an Illawarra Mercury news article that she was one of the councillors involved in the ICAC referral.
"I was shocked to read statements in the article that were plainly wrong," she said.
"I want to make clear that at the time the development application on the abattoir came to council, September 2022, I had nothing to declare in relation to any of the parties involved.
"In this matter, as always, I have declared and managed conflicts of interest in accordance with the councillor code of conduct and the relevant legislation."
The referral came just three months out from the NSW local government elections.
Cr Renkema-Lang said she was reminded of comments made by the ICAC commissioner John Hatzsistergos in the lead up to the 2023 state government elections.
"Investigations into allegations of corrupt conduct are rarely if ever assisted by premature publicity," Mr Hatzsistergos said at the time.
"It is inappropriate to weaponise a referral to the commission for attention or political advantage."
Cr Renkema-Lang two months ago won a Supreme Court case against Kiama council after it attempted to reprimand her for speaking to ABC Illawarra when she criticised council's plan to sell a council-owned aged care facility.
The court case found a censure motion against Cr Renkema-Lang was invalid because it relied on an independent report that was affected by an apprehension of bias.
The court case has so far cost ratepayers more than $400,000.
'Reasonable suspicion' of corrupt conduct
Council chief executive Jane Stroud referred the councillors to the corruption body under Section 11 of the ICAC Act.
"Section 11 requires a principal officer of a NSW public authority to report any matter where there is a reasonable suspicion that corrupt conduct has occurred or may occur," the statement said.
Greens councillors Kathy Rice and Jodi Keast identified themselves and as the other councillors involved and denied any wrongdoing.
Cr Rice welcomed any oversight of her behaviour.
"I maintain my commitment to improving governance and transparency in decision making on Kiama Council," she said.
Cr Keast echoed the sentiments.
"I have always declared potential, perceived and actual conflicts of interest and managed these appropriately, including this particular instance in 2022," she said.
"I welcome any oversight by the ICAC that is deemed necessary."
They both noted Kiama Council staff recommended rejection of the application for the abattoir in September 2022 and all councillors voted unanimously to refuse it.
Council finances under spotlight
Councillor Renkema-Lang has campaigned on issues of transparency and integrity since she was elected in 2021, vowing to highlight debate on the council's finances with a view to getting the budget back in the black.
In November 2022, then local government minister Wendy Tuckerman issued Kiama Council with a performance improvement order due to concerns about its ability to repay its debts incurred during the construction of its Blue Haven Bonaira aged care home.
The council has since agreed to sell the home to pay off its mounting debts.
An audit of Kiama Council finances obtained by the ABC in October 2023 revealed significant accounting errors resulted in the council overstating its financial position by $41 million.
In May, NSW Local Government Minister Ron Hoenig wrote to the council to raise concerns it "is not moving quickly enough to ensure a stable and sustainable financial situation".
The council has sold land at Akuna Street to improve its cashflow, and is considering selling additional blocks on Atunga Street and Iluka Street in the future.
Cr Renkema-Lang moved an amendment during a recent extraordinary meeting, calling on the council to update its long-term financial plan.
It included adopting recommendations from the council's Finance Advisory Committee which said the council needed to reduce its reliance on asset divestment as a way to achieve a balanced budget.
The amendment was unsuccessful, with Cr Rice, Cr Keast and Cr Renkema-Lang the only councillors voting in favour.
The council has predicted an operating deficit of $5.4 million in 2024-25, and said it expected to return to an operating surplus by 2026-27.