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Key Witness Testimony: John Ajaka on Appointment and Council Challenges
Mr Ajaka’s evidence on Day 7 focused on his appointment as CEO, his background, and the circumstances leading to his role at Liverpool City Council. We have simplified the key points below, highlighting what should concern us as ratepayers funding a budget of over $530 million annually.
Background and Appointment Process
Mr Ajaka started as CEO of Liverpool City Council around mid-December 2022, officially returning from holidays in mid-January 2023. He applied for the role after it was advertised, working through Blackadder Associates, a recruitment agency led by Stephen Blackadder, whom he knew from his earlier days as a councillor at Rockdale City Council (2004-2007). His background includes a Diploma in Law, work as a solicitor, and a 13-14 year stint in the NSW Legislative Council as a Liberal Party member, where he held roles like Minister for Ageing, Disability, Youth, Volunteering, and Multiculturalism, and later became President of the Legislative Council until leaving in 2021. Post-parliament, he took on non-executive director roles in private companies and chaired the Sydney Local Health District Board.
His recruitment involved three stages: two interviews with a panel of five councillors (including Mayor Ned Mannoun, Councillors Green, Rhodes, Macnaught, and Harle) and Stephen Blackadder, followed by a presentation to the full council on or around 6 December 2022 at an extraordinary meeting. Minutes from that meeting show declarations of non-pecuniary, less-than-significant interests by Mayor Mannoun and Councillor Hadid, both citing prior acquaintance with applicants through local government and Liberal Party ties. Mr Ajaka confirmed knowing both through the Liberal Party, describing his relationship with the Mayor as friendly, though not deeply personal, having met at various functions since at least his Rockdale Council days.
After the presentation, while driving home, he received a call from Stephen Blackadder confirming a unanimous council vote in his favour. He signed a five-year contract the next day, effective from 12 December 2022, with a total remuneration package of $550,000 annually (including cash, superannuation, and a vehicle allowance), based on the Office of Local Government’s model contract for general managers, which includes termination clauses for cause, misconduct, and without cause with subsequent payment.
What stands out as troubling for us ratepayers is the way Mr Ajaka was encouraged to apply. He revealed that Mayor Ned Mannoun personally called him twice to urge him to apply, despite initial refusals. The Mayor highlighted serious issues at the council—staff and union problems, matters reported to the Office of Local Government, and concerns about a new building project (likely Civic Place, referenced in earlier hearings)—suggesting Ajaka was the right person to fix them. After declining twice, Stephen Blackadder also called at the Mayor’s suggestion, further pressing him to apply, citing his potential to make a big difference. Only after this third push, and a chat with his wife, did Ajaka submit his application.
For residents, this raises serious red flags about impartiality in the hiring process. The Mayor’s direct involvement in recruiting a specific candidate, especially someone known through political and personal ties, suggests potential bias or undue influence. With a unanimous vote following interviews where the Mayor and another councillor declared interests due to prior connections, we must question whether the process was truly fair or if political affiliations swayed the decision. This matters because the CEO role is pivotal in managing our rates and services—a biased appointment could prioritise certain agendas over community needs across all suburbs.
Contract and Termination Provisions
Area of Concern for Residents: High Costs of Termination Payouts
Mr Ajaka’s five-year contract, valued at $550,000 per year, includes a clause for termination without cause, which typically involves a significant payout (often up to 38 weeks’ salary as per standard local government contracts, though not specified in detail here). While he hasn’t yet discussed his departure (testimony cut off before this), earlier hearing days hinted at costly terminations for senior staff, including Ajaka’s own exit. For us as ratepayers, this is a major worry. If his contract was ended without cause, the payout—potentially hundreds of thousands of dollars—comes from our rates, diverting funds from essential services like road repairs or community facilities. This pattern of high termination costs, seen with others like Farooq Portelli on Day 3, adds to concerns about financial mismanagement at the council.
The overlap of Liberal Party connections between Mr Ajaka, Mayor Mannoun, and Councillor Hadid, acknowledged in their declarations of interest, is deeply concerning. Ajaka’s testimony that the Mayor personally pushed for his application, citing urgent council issues, suggests political ties may have played a role in strategic decisions. For Liverpool residents, this fuels distrust in whether council leadership serves the public or party interests. If political friendships influence who gets top roles, it risks decisions—on budgets, projects, or staffing—that might not align with our community’s priorities, impacting everything from local amenities to rate increases.
Why This Matters to Liverpool Residents
As ratepayers in Liverpool, we’re funding a council with a budget over $530 million, and Day 7’s evidence from Mr Ajaka brings up serious issues about governance and financial responsibility. The Mayor’s personal involvement in pushing for Ajaka’s application, combined with declared political connections, casts doubt on the fairness of the CEO hiring process. If key appointments are swayed by personal or party ties rather than merit, we risk having leaders who might not put our community first, affecting services and projects across our area.
Even more worrying is the potential cost of Ajaka’s contract termination. High payouts for senior staff, as seen in past testimonies, drain our rates—money that could fix potholes or fund local programs instead gets spent on exit packages. Plus, the hint of underlying council issues (staff, unions, building projects) allegedly flagged by the Mayor during recruitment suggests deeper dysfunction that could further waste resources or hike our costs if not addressed transparently.
We encourage all Liverpool residents to stay engaged by following the inquiry’s live stream or checking online transcripts. This is our chance to ensure our council operates with integrity and focuses on our needs, not personal agendas or costly missteps. We will keep bringing you updates on each day’s events, and love to hear your thoughts or experiences with council services—your input is vital. Don’t forget to tune in to 89.3 every Thursday at 9am with Michael and BJ on The Pulse for the latest local news and updates on these hearings.