Queenscliffe CEO Martin Gill given formal warning after 'likely' breaching rules over his performance appraisal
The CEO of Victoria's smallest council has escaped prosecution for "likely" breaching the Local Government Act, following an investigation by the state's council watchdog into conflict of interest allegations.
Borough of Queenscliffe CEO Martin Gill was this month handed a formal warning by the Local Government Inspectorate, following his handling of a councillor's Notice of Motion (NOM) relating to his own CEO performance appraisal in March of last year.
It is understood at least one complaint was lodged with the Inspectorate after Mr Gill directly communicated with councillors about the move to consider how his performance appraisal was approached.
A letter from the Inspectorate, seen by the ABC, noted the investigation "found that Mr Gill likely breached the Act by engaging in email communication about the NOM".
The document, signed by Inspector of Municipal Administration Aida Rejzovic, noted the Inspectorate had decided against prosecuting the "likely" breach of the act.
"Upon considering the seriousness of the offence, any mitigating or aggravating circumstances, the availability and efficacy of any alternatives to prosecution, the use of public funds in seeking prosecution, it was determined that, in this instance, the public interest is not best served by prosecuting this case," Ms Rejzovic noted.
"The Inspectorate concluded that, on this occasion, a formal warning is an appropriate course of action."
Ms Rejzovic wrote that she expected Mr Gill to "take this decision seriously in carrying out his duties and serving the community".
"Any future action of similar nature may be treated differently and may ultimately result in charges being brought against Mr Gill," she said.
Responding to questions from the ABC, Mr Gill said he "accepted" the conclusion of the Inspectorate.
"I made the mistake of providing some initial advice to a councillor on a proposed Notice of Motion, before recognising the potential conflict," Mr Gill said.
Mr Gill also said communication he had received from the Inspectorate noted his "cooperation and proactive measures upon recognising the conflict of interest played a part in this decision".
A statement from the Borough of Queenscliffe suggested no further action would be taken against Mr Gill.
"The appropriate authority, independent of Council, being the Local Government Inspectorate, has carried out an investigation and made its determination, and Council will respect the independence and authority of that body and regard the formal warning as the appropriate response to the matters considered.
"Beyond that, Council will not be commenting."
The Inspectorate's formal warning comes after the ABC in January revealed Mr Gill had faced a separate investigation into allegations he had threatened to "take apart" a councillor.
It is understood the borough investigated allegations Mr Gill made verbal threats to then-councillor Michael Grout in late 2024, with at least two formal complaints lodged by councillors.
"He did say that he 'could take me apart whenever he wanted', in a very aggressive manner," Mr Grout said. "In 50 years of working I've never experienced a direct threat like that before."
"I had decided about a month earlier that I wouldn't run again, and I based that decision on the constant frustration with having to work with an underperforming administration in a bad culture … at times it was toxic."
The borough has declined to comment on the investigation and any potential outcomes.
Mr Grout decided not to recontest election to the council last year due to concerns over a "toxic culture", which followed the resignation of councillor Fleur Hewitt in May 2023.
Queenscliffe is Australia's last remaining borough, and the smallest and least populated of Victoria's 79 local government areas — measuring just 8.6 square kilometres and home to 3,238 people.
It also barely survived the amalgamation of councils in the early 90s.
It includes the suburb of Queenscliff, defence land on Swan Island, and about two thirds of Point Lonsdale — with neighbours on the east side of Fellows Road part of the borough, and those on the west in the City of Greater Geelong.
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