During the council meeting on Tuesday, August 25 the project was discussed openly for the first time, focusing on a report by acting chief executive Brian Barrett on council’s involvement so far.
Cr Tom Weyrich said he rejected the report as factually incorrect.
“When were the majority of councillors informed about the purchase price of $1.2 million? When were the majority of councillors informed about the $15 per acre lease back to the owner? When were the majority told about a caveat on the land in [Gheringhap]?” he said.
“It’s my view that we’ve been scammed. I believe this has been a deliberate act by a group of people to not only defraud the ratepayers of the MRC, but to also come up with plans that are not viable.
“I’m certainly in favour of 250 jobs, but this is just not right. There are a lot of people out there struggling to pay their rates, and then for us to go squander $2 million,” he said.
Cr Weyrich said his information was that a director or close associate of Murray River Energy had put a caveat on the land MRC has first mortgage over in Gheringhap; however, director of shared services Ross Mallett said this wouldn’t prohibit council from selling it if they wished to.
Mr Barrett assured councillors every word in his report could be backed up by council documents.
However, he did concede council paid more than what a current valuation had suggested, due to negotiations to buy the land chosen by Murray River Energy from an unwilling seller.
He also revealed the low lease price of $15 an acre was part of the deal to secure the land in the first place.
Cr Gen Campbell said she was concerned about the return on investment, with the lease bringing in $7312 plus GST per annum.
“I can’t understand why we entered into a lease when we haven’t followed our procedures with putting out council property for tender,” she said.
Cr Neil Gorey supported an audit, but said council should be careful not to “point the finger at the wrong people”.
“At the same time, it should not get lost in the debate that all councillors originally supported this project,” he said.
Cr Ann Crowe said she believed the project could still get over the line and was a great opportunity to stimulate the economy.
Cr Tony Aquino said he believed the backlash to the project was because the public had been misled, and would like an opportunity to sit down with concerned ratepayers and put the issue to rest.
“We’ve spent a lot more than what was agreed to, and I can’t see what the big problem is about getting an honest answer back as to why that happened,” he said.
“I’d love to see this go ahead and give us 250 jobs, but I can’t see it happening.”
Cr Nikki Cohen questioned whether due processes were followed and proposed for a review to be completed by the audit committee, including a risk management plan.
“I think this has unfortunately become an issue of lack of confidence in council, which upsets me greatly — we are dealing with ratepayers funds,” she said.
The motion was passed, with terms of reference for the review to be ready for the audit committee’s next meeting on September 21.
Director of community and economic development John Harvie said Murray River Energy had taken longer than expected to put its finance in place, but intended to continue with the project.
“Council has an agreement with the company that once they receive planning approval for this $100 million project, they will purchase the site from council at the price council paid plus holding cost,” he said.
Cr Geoff Wise was not present at the council meeting.
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