Arrest sparks plea for aid
THE Palm Island Aboriginal Shire Council is seeking an emergency “support package” from the State Government to deal with a “cash flow issue” following the arrest of the council’s finance head for alleged fraud.
An emergency meeting of the council was held on Palm Island yesterday afternoon at the request of chief executive Ross Norman.
Mr Norman said the council, which includes Mayor Alf Lacey, Deputy Mayor Roy Prior, Cr Edward Walsh, and Cr Deniece Geia had decided to write to Local Government Minister Stirling Hinchliffe seeking “some sort of support package”.
“We do have a little bit of a cashflow issue at the present moment,” Mr Norman said.
“We don’t have accurate figures, we don’t have integrity in the figures at the present moment. But we’re saying it’s probably somewhere around the million (dollar) mark.”
John Mugambi Mwamba, 50, the deputy chief executive officer and director of financial services for Palm Island Aboriginal Shire Council, was arrested last Friday after an extensive investigation by the Crime and Corruption Commission.
Mwamba was charged with 24 counts of fraud allegedly committed between December 2016 and January 2019.
Mr Norman confirmed Mwamba had worked for the council “in excess of 10 years”.
Mwamba’s Linkedin page states he has worked for the council since March 2007. Court documents revealed Mwamba was accused of dishonestly applying a “banking credit” belonging to the council twice, each to the use of Mayor Alf Lacey and Deputy Mayor Roy Prior. Neither could be contacted for comment.
Several others have been named in the fraud charges against Mwamba. Mwamba is accused of dishonestly applying banking credit to Patience Wawira Njue and Kelly Maina Mugambi that belonged to the council.
There is no suggestion of wrongdoing by either Cr Lacey, Cr Prior or any other person named in accusations against Mwamba, whom have been changed.
Mr Norman confirmed none of the councillors would be stepping down and neither was he.
“I believe the mayor and the councillors have been advised by the department (of local government) and the Minister (Stirling Hinchliffe) … there is no indication at this stage that they are requesting any of the councillors to step down,” he said. “I am the last man standing, basically; if I’m not here the place is going to fall apart.”
Mr Norman said he believed the CCC investigation may date back two years. none of
“I can make any number of assumptions as to what has happened but because it is (an) ongoing (investigation) I can’t comment,” he said. “Given the number of charges, one would think there is more than one person involved.”
Mr Norman said the council was in need of accounting staff to get them “over this hump” and that “action plans” were in place.
An email from the council’s human resources manager, Mark Mooney, sent to council staff yesterday, and seen by the Townsville Bulletin, stated the “situation had been fully exposed” and an emergency meeting had been called by Mr Norman to allow the council “to make certain decisions that are required in such circumstances”.
“Also if you are not aware, we are operating here in the Dearness St (head office) with no accountants at all,” Mr Mooney said in the email.
Council staff were told to maintain “normal operations” until more became known following the meeting.
Townsville MP Scott Stewart and Child Safety, Youth and Women Minister Di Farmer were expected to be on Palm Island today for a visit planned weeks earlier.
A spokesman for Local Government Minister Stirling Hinchliffe said no comment could be provided because the matters were before the CCC.
“My department of Local Government continues to work with the Palm Island Aboriginal Shire Council to provide support on a range of issues,” he said.
It is understood Townsville City Council has stepped in to assist Palm Island Aboriginal Shire Council at the behest of the Department of Local Government.
A TCC spokesman said a request had been sent to Palm Island counterparts to consider “sustainable” ongoing assistance with water and waste infrastructure.
Court documents do not reveal how much money is involved in the alleged fraud.
Mr Norman said he was aware of a dollar figure either.
Mwamba is due to appear Townsville Magistrates Court
July 26.
The maximum penalty for fraud varies on how much money the matter involves, starting at five years’ jail for less than $30,000 to up to 20 years’ jail in cases involving more than $100,000. not
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