An audit of the Townsville City Council has found staff overrode the public tender process to appoint a preferred contractor, paying the contractor triple the wage of the previous worker. The Queensland Audit Office report released on November 13 revealed that a council employee based the recommendation and approval on incorrect costings, using only one year of expenditure despite the contract term being three years.
Under Queensland's Local Government Regulation 2012, contracts worth $200,000 or more require written tenders. The breach is another blow to the council's integrity, coming 12 months after it overpaid departing executives amid financial challenges that led to rate hikes, subsidy cuts, and doubled parking fees. In September, it was revealed that half of the council's projects in the three years to 2024 were on average 26% over budget.
The audit also found that the council did not perform independent cross-checks on related party disclosures of interest forms completed by councillors and key management personnel, relying entirely on self-declarations. The council told the audit office it would implement a more robust process to review and verify related party declarations and conduct staff refresher training on contract awarding requirements.
A council spokesperson said the breach was identified before a further purchase order, and the final contract amount was approximately $120,000 after redefining the scope of works. James Cook University lecturer Liam Moore said the audit could further challenge public trust in the local government, especially after the electorate voted for change in a recent mayoral by-election won by former KAP state MP Nick Dametto.
