Port Stephens Koalas bullying allegations: scope of investigation weighed after council votes for CEO, president to stand down

The vote followed a fiery debate in the Raymond Terrace council chambers over a notice of motion moved by retiring Independent councillor Ken Jordan.

The council has two seats on the koalas board and a spokesperson said yesterday that a letter would be sent to the organisation "in accordance with the resolution".

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Ms Anderson said yesterday that the koalas board had met with the council general manager, Wayne Wallis, to discuss an "independent assessment of these complaints, which we have not yet seen".

She said the council would work with the board on "the scope" of the investigation.

The board would then "review and discuss the next steps".

Mr Land did not return requests for comment yesterday.

Ms Anderson and Port Stephens state Labor MP Kate Washington spoke in a public voice session before Tuesday night's meeting, and criticised the call for an inquiry as "playing politics".

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But Cr Jordan told the chamber that he would be negligent if he "did not stick up for" as many as 20 people who had contacted him in tears, "bawling their eyes out".

"Why would we not look after these people?" Cr Jordan said.

"They are people from Port Stephens who are in tears on the phone who are absolutely frightened.

"They've been bullied. That's what they tell me."

The controversy began in August when Ms Anderson, then a board member, was appointed CEO without outside advertising.

She had been preselected in May as Labor's mayoral candidate for the December 4 poll, opposing incumbent Ryan Palmer.

She was to have been paid a $36,000 salary but has since relinquished this.

Cr Jordan lodged Tuesday night's notice at the previous council meeting two weeks ago but it was ruled "not urgent enough" to debate.

He succeeded on Tuesday.

Labor's Giacomo Arnott lashed Cr Jordan for "gutter politics", but failed to gain a seconder to amendments that would have nullified Cr Jordan's motion.

Responding to questions from the Newcastle Herald, Ms Anderson said any complaints about the running of the hospital would "be handled appropriately and with due process".

"But, some local councillors have mixed in personal accusations against me which are false and highly defamatory, and clearly designed to be a political attack," Ms Anderson said.

Cr Jordan and Cr Abbott dispute this.

Answering Herald questions, the council said both it and Port Stephens Koalas were committed to caring for koalas and the council would "await the outcome" of the "independent and confidential investigation of allegations relating to the management of PSK and the koala hospital".

"Council has a commercial services agreement with PSK which outline how the parties cooperate in the operation of this facility," the council said.

" As part of this services agreement, council contributes ongoing annual funding to PSK to provide a level of on ongoing financial stability to assist PSK in meeting its obligations under the services agreement.

"This is a commercially binding agreement."

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