Private prosecutions shut down Hepburn Shire Council, sparking legal and political crisis

Consensus Summary

A single resident, David Penman, has effectively shut down Hepburn Shire Council by filing private prosecutions against five of its seven councillors, forcing them to stand down under the Local Government Act 2020. The charges allege the council adopted its budget without required financial documents, a claim the council denies. With only two councillors remaining, the shire cannot form a quorum, halting major decisions while essential services like rubbish collection and road maintenance continue. The Victorian government is rushing to amend section 229 of the act to prevent such disruptions in the future, though the changes would not apply retroactively to the current case.

The controversy stems from a loophole in Victorian law allowing private individuals to file criminal charges without police involvement, triggering automatic stand-downs for councillors. Penman, a local businessman, has leveraged this process to challenge the council’s budget approval, arguing the councillors acted unlawfully. The Hepburn Shire Council has condemned the move as an attack on democracy, while advocacy groups warn similar tactics could paralyze other councils. The Office of Public Prosecutions is now reviewing the charges, which have drawn comparisons to 'lawfare' tactics undermining local governance.

Key figures in the dispute include Mayor Tony Clark, who called the charges a 'threat to democracy,' and councillor Brian Hood, one of the two remaining members. Hood emphasized that daily operations remain unaffected but major decisions—such as new contracts or infrastructure projects—are stalled. Penman defended his actions, stating his goal was accountability, though critics argue he is weaponizing the legal system. The council’s CEO, Bradley Thomas, also faced charges and resigned, though he remains in his role temporarily. Thomas previously pleaded guilty to a separate assault charge and was fined $500, adding to the personal toll of the dispute.

While all sources agree on the core facts—five councillors stood down, the budget allegations, and the government’s response—they differ in emphasis. The Guardian and ABC focus on the legal and political implications, including the proposed amendments to section 229, while The Age highlights Penman’s prior legal troubles and the broader risk of 'vexatious' private prosecutions. The Age also notes Rural Councils Victoria’s call for retrospective legislation, a detail not mentioned by the other outlets. Additionally, The Age specifies that Clarke’s charges are due in court on August 5, a timeline not confirmed by the Guardian or ABC.

The unresolved question is whether the Director of Public Prosecutions will take over the private prosecutions, which could halt the stand-downs. The Victorian government has introduced legislation to address the issue, but its passage remains uncertain. Meanwhile, the council faces the possibility of an administrator being appointed if the stalemate persists. Penman’s actions have exposed vulnerabilities in local governance, prompting calls for stronger safeguards against abuse of private prosecution laws. The dispute also raises broader concerns about accountability versus the weaponization of legal processes in local politics.