The Press

Redundanci­es revealed after CEO’s abrupt departure

- Joanne Naish

The number of redundanci­es, personal grievance payouts and resignatio­ns at the Grey District Council increased in the last two years of former boss Paul Morris’ tenure.

Morris resigned last month, effective immediatel­y, after about four years in the role.

Figures released under the Local Government Official Informatio­n and Meetings Act show the council spent $269,949.74 on five redundanci­es and $38,650 on three personal grievance claims last year. There were no personal grievances payouts in the two years before that.

In the 2021-22 financial year, the council spent $387,249 on another five redundanci­es. It spent nothing on redundanci­es in 2020-21.

The number of resignatio­ns during Morris’ tenure was 148 (37 per year on average), compared with 86 in the three years (an average of 28 a year) before he arrived.

Morris started as chief executive in April 2020. In July 2021, he announced the council would become customer-focused after a review uncovered an environmen­t of “mistrust and division”.

All four senior managers decided not to reapply for jobs after their roles were disestabli­shed and replaced with three group managers in September 2021.

In 2022, Morris announced he was culling 14 roles and creating eight new ones, saving $1.1 million. However, the council’s 2022 annual report noted an unbudgeted spend of $1.1m on consultant­s.

The 2023 annual report revealed a total operating deficit of $3.9m. It spent $41.3m – $7.8m more than the $33.4m it had budgeted.

The report said $5.4m was “due to increased costs associated with consultant­s and contractor­s”, plus “profession­al fees” to ensure compliance with legislatio­n, and the final stage of the customer-focused project.

According to surveys, residents’ satisfacti­on with the council’s overall performanc­e dropped to 59% in 2022, compared with 70% in 2021 and 81% in 2020.

At the time Morris’ resignatio­n was announced, mayor Tania Gibson said he was leaving “to pursue further opportunit­ies available to him”.

However, a source said councillor­s and the mayor had a “loss of confidence” in some of the changes. The restructur­e had cost a lot and some councillor­s had questioned whether it was value for money.

Just days after Morris’ resignatio­n, councillor­s appointed Paul Pretorius as interim chief executive.

Pretorius had been council boss for 22 years before retiring in May 2020.

Gibson said yesterday the council was still waiting to see the outcome of the customer-focused programme. The use of consultant­s was common across the sector, but elected representa­tives were keen to get them off council books, she said.

The council was working with a recruitmen­t company and expected the chief executive position to be advertised next week. “It’s a strong labour market for finding chief executives, so that is good.”

The council’s draft 2024-25 annual plan is out for consultati­on. It includes a 13.65% average rate rise what Pretorius called a “back to basics” budget.

In a statement, he said he recognised community frustratio­n about the amount of money spent on consultant­s. “We have removed much of this allocation from our budgets as we get back to basics and do as much as we can in-house with our very capable team.”

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