The anonymous email that plunged a council into chaos

In April last year, as instability rocked Liverpool City Council in south-west Sydney, an email from an anonymous sender dubbed “USU Advocate”, landed in the inboxes of politicians, journalists and the state’s anti-corruption watchdog.

“Distress at Liverpool Council,” read the subject line, an inquiry into the council heard on Thursday.

The April 22 email, which purported to be from a member of the United Services Union, heaped praise on council’s then chief executive John Ajaka as “nothing short of exemplary and impartial with staff”, and poured scorn on Liberal Mayor Ned Mannoun as “out of control” and “micromanaging the council”.

The email also accused Mannoun of “trying to shaft” two council directors and 150 staff members.

The origins of the latter figure, and the extent to which the false rumour of 150 job cuts fuelled a heated rally and chaotic council meeting during which police were called and Ajaka was placed on leave, are at the centre of an inquiry into alleged dysfunction and maladministration at the council.

The inquiry has heard union members chanted “Put some pork on your fork” and held up a toy pig at a protest directed at Mannoun, who is Muslim, after the union informed its members of the rumours and shortly before police were called to a council meeting after the workers rallied on April 24.

At that meeting, the council’s then-chief executive John Ajaka was stood down pending an external investigation into his behaviour at a prior meeting, when the inquiry has heard he told Mannoun to “shut the f--- up”.

On Thursday, Lauren Myers, an executive assistant to Mannoun and Ajaka, told the inquiry she had organised a meeting between Ajaka and USU organiser Sandie Morthen the morning of April 22.

She said Ajaka had told her after that meeting the pair had discussed “some of what was happening between him and the mayor”, and that “Sandie knew of more info even before she arrived”.

“It seemed to take Mr Ajaka by surprise,” Myers said.

“He said they had discussed an email from an anonymous person, ‘USU advocate’, and I remember him saying Sandie brought a copy of the email to the meeting.”

Ajaka later told Myers the extra information Morthen knew about during the meeting had related to the rumour the council was poised to slash 150 jobs. The allegedly fabricated number was later repeated in an interview between a union delegate and 2GB radio host Ray Hadley – and strongly denied by Mannoun – on April 23.

Myers said Ajaka was “very frustrated” when they spoke about the origins of the rumour that week, and had remarked to her: “I’ve been racking my brains about where the 150 jobs figure came from, I just can’t work out where it came from.”

Myers told the inquiry she had shared her theory of where the incorrect rumour came from with Ajaka. A “simplistic view”, she suggested, might be that if the council was planning to cut two director roles, it would follow the 150 jobs under those directors might also be for the chop.

“The figure may not be exactly 150, but it may come close to that number,” she had told Ajaka.

“He thought about it for a while and then said, ‘I think you might be onto something’.”

However, on Tuesday, United Services Union organiser Sandie Morthen gave evidence Ajaka had referred to the job losses during their April 21 meeting, whe he told her that he swore at Mannoun “because [Ajaka] had refused to cut 150 jobs that he’d been asked [by Mannoun] to cut”.

Morthen admitted she misled an independent investigator by suggesting Ajaka was not the source of the rumour because she worried his contract would be terminated, and she was “protecting my member”.

“The USU did not create that number. Mr Ajaka told me that number,” Morthen said.

She told the inquiry she later felt “angry it appeared I was being thrown under the bus”.

Ajaka’s contract was terminated on May 29. The inquiry previously heard a termination letter, which he received after that meeting, had cited several instances of “unsatisfactory conduct”, including allegations he had fuelled rumours Mannoun wanted to sack 150 employees.

In his evidence, Ajaka denied he failed to correct the record on the job losses before the rally because he was worried his own job was at risk due to flaring tensions with Mannoun.

The hearing continues in front of Commissioner Ross Glover. Mannoun is yet to give evidence.

The weeks-long hearing is examining councillors’ conduct, as well as the council’s handling of finances, property purchases, staff employment, and $150 million in state government grants.

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