![Kiama councillors have been put on notice that Local Government Minister Wendy Tuckerman may step in if things don't go well. Picture: Wesley Lonergan Kiama councillors have been put on notice that Local Government Minister Wendy Tuckerman may step in if things don't go well. Picture: Wesley Lonergan](/images/transform/v1/crop/frm/4FavSveeQdYEHssZq5umRQ/0ecdde17-c66c-4d49-a79e-3298e649ce06.jpg/r0_0_4924_3272_w1200_h678_fmax.jpg)
Kiama Council could face "further intervention" from the government if it doesn't act appropriately to resolve its financial turmoil.
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The council is in a situation where it is at risk of not being able to pay its debts, as well as concerns raised about the way the books were kept by previous councils.
These issues were raised in a letter from the NSW Audit Office to Local Government Minister Wendy Tuckerman, who in turn has written to Kiama councillors.
Ms Tuckerman's letter expressed "concerns about the ongoing financial sustainability of council" and advised councillors to adhere to their responsibilities.
And then came the warning.
"Should I view council's actions are not in accordance with the responsibilities outlined I will consider enacting further intervention options that are available to me," Ms Tuckerman said.
This comes a day after councillors held an extraordinary meeting on Wednesday, effectively to make the Audit Office letter public.
"As at June 30, 2021, council's draft financial statements disclose $141.1 million in current liabilities and $46.1 million in current assets, including $37.6 million of cash and investments," the letter stated.
"The deficit in liquid assets available to fund council's liabilities poses a significant risk to council."
The letter also expressed concern about the council's ability to repay the bulk of a $60 million loan from T-Corp, taken out to construct Blue Haven, which is due in August next year.
Councillors were asked to note the letter from the Audit Office and "take all steps necessary to correct the financial situation" of the council.
"Tonight's the night for us to release information, for us as a council to move on with it," Cr Matt Brown said.
"It wasn't just the last council, it was councils before who actually made the decision to actually go ahead with Blue Haven and councils before that who continually did not separate Blue Haven with general council finances."
Councillors unanimously passed the motion to receive the letter and take the necessary action.
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