‘Vindictive’ Private Prosecution Shuts Down Entire Council: Why the DPP Had to Intervene
- A private resident’s charges against five councillors and a CEO have been dropped, but not before the council was forced to shut down.
- The Director of Public Prosecutions (DPP) intervened, citing insufficient grounds to proceed with the prosecutions.
- The councillors will be reinstated, but the saga has left a trail of destruction, with the council seeking compensation for the “significant costs” incurred.
- The state government is considering legislation to close the loophole that allowed the private prosecution to occur.
The small Hepburn Shire Council in central Victoria was brought to its knees after a local businessman, David Penman, laid charges against five councillors and the chief executive, alleging misuse of public office offences.
The charges, which were levelled under the Local Government Act, forced the councillors to stand down until the matters were dealt with in court, effectively shutting down the council.
But in a dramatic turn of events, the DPP intervened, taking over the charges and successfully applying to have them thrown out.
Speaking outside the Ballarat Magistrate’s Court, Mayor Tony Clark said the councillors were “extremely pleased” with the outcome, but the saga has left a bitter taste.
“We will have more to say later,” Mr Clark said, hinting that the council would be seeking compensation for the costs incurred during the proceedings.
The court heard that the “significant costs” incurred by each party would need to be quantified, with multiple organisations, including the Hepburn Shire Council, seeking Mr Penman to pay their legal costs.
Magistrate Patrick Southey said there would need to be “at least a day” for each representative to quantify costs owed, with five different lawyers representing clients in the courtroom.
But the real question is, how did this happen in the first place? The answer lies in a loophole in the Local Government Act that allows private residents to lay charges against councillors.
Rural Councils Victoria (RCV) welcomed the DPP’s move, but noted that the disruption to the “lives and careers” of the Hepburn councillors was “sadly, already created”.
“Until the Victorian government changes the law and closes the loophole that forces councillors to stand aside in these circumstances, the threat will continue,” an RCV spokesperson said.
Analysis: What This Means for Australia
This case highlights the need for urgent reform of the Local Government Act to prevent similar situations from occurring in the future.
Security analysts say that the loophole in the act creates a vulnerability that can be exploited by individuals with a vendetta against councillors.
Law enforcement insiders warn that the use of private prosecutions as a means of revenge or intimidation is a growing concern, and that the government needs to take action to prevent it.
The impact on the community cannot be overstated. The shutdown of the council has caused significant disruption to local services and has left residents feeling frustrated and disenfranchised.
Industry observers believe that the government’s response to this situation will be closely watched, and that any failure to act will be seen as a dereliction of duty.
As one commentator noted, “This is a classic case of a private individual using the law to pursue a personal vendetta, and it’s a stark reminder of the need for reform.”
The state government has announced that it is considering legislation to close the loophole, but until then, the threat remains.
As the Hepburn Shire Council seeks to rebuild and recover from this ordeal, one thing is clear: the need for urgent reform of the Local Government Act has never been more pressing.



