Former CEO Gary Murphy has dropped his defamation case against interim administrator Dick Persson and Central Coast Council as a second defendant.
Murphy filed a Notice of Discontinuance of the matter in the NSW District Court on Thursday March 24 after the matter was mentioned for directions a couple of times previous to that.
Council has since put out a public statement saying it had made no settlement payment.
Murphy did not respond to questions from Coast Community News.
Murphy’s contract was paid out by Persson in November 2020 – weeks after Persson was installed as the Interim Administrator when the Councillors were suspended late October 2020.
Murphy took the job as CEO in July 2018 and announced in early October 2020 that Council had been using restricted funds without the permission of the elected Councillors or the Local Government Minister.
He took leave while the Councillors argued over his offer to resign before they were suspended.
Murphy said at the time that he was keen to return to work with Mr Persson to turn the Council around but Persson paid out his contract.
Persson outlined his reasons for paying out the contract in media releases, on social media and in Council meetings and public documents.
The Council is still under administration with Persson replaced by Rik Hart after six months.
The councillors have been sacked after the report from the Public Inquiry made public on March 17 recommended their positions be made vacant, effective immediately.
Commissioner Roslyn McCulloch referred to the defamation case in her report.
“As I am aware that this issue is likely to be determined by a Court of record, I will not venture an opinion as to the state of Mr Murphy’s knowledge as to the use of restricted funds for unlawful purposes prior to his receipt of the Grant Thornton Phase 1 Report on 4 June 2020,” she wrote.
Merilyn Vale