State Member for the Dubbo electorate Dubbo Dugald Saunders says it's possible the state government could place Dubbo Regional Council under administration but he believes the option is "not high on the agenda".
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Mr Saunders said the council, now led by acting mayor Stephen Lawrence, was seeking to address claims of "bullying and harassment" with a report on the options for launching an independent investigation due at a meeting on May 4.
He is confident the council will push ahead with an independent inquiry.
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"But if they did come out and say 'no we don't want to do that', I think that would be the point where the local government minister (Shelley Hancock) would react and certainly I would react," Mr Saunders said.
"Until that happens I'm giving the councillors and the CEO the chance to actually look at the best way of going forward with the investigation. I'm sure that will happen."
On April 7, six councillors called on mayor Ben Shields to resign and members of the community dissatisfied with their interactions with any councillor to come forward.
Cr Shields has taken indefinite medical leave.
On Tuesday night, broadcast media covering the death of council staff member Mark Finlayson suggested the government was considering placing it under administration.
The following morning Mr Saunders said the suggestion may have followed the minister's advice from a week ago that she was looking at all options.
"I don't think there is anything more in that to be honest because she hasn't reached out to me at all and she has said nothing to anyone else since then," he said.
Mr Saunders tells of continuing contact from people keen to talk to an independent investigator.
On Monday he spoke with a former council staff member whose mental health was affected by an alleged lack of support in the workplace.
"The patterns that people are talking about have just been there for four years now and people are well and truly sick of it," he said.
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