Liverpool Council has lost a legal bid to stop the state government appointing administrators. -AAP Image
A local council embattled by claims of widespread dysfunction has failed in a court bid to stop the NSW government appointing administrators and holding a public inquiry.
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A damning interim report found problems with Liverpool City Council's recruitment processes, procurement irregularities and allegations of a toxic work environment.
The council is located in Sydney's southwest and is one of the largest and fastest-growing areas in the city.
After the report, the state government ordered a public inquiry and could place the entire council under the hands of an independent administrator.
NSW Local Government Minister Ron Hoenig did not show bias in releasing the report, a judge says. (Bianca De Marchi/AAP PHOTOS)
A challenge to moves suspending the council and postponing elections was mostly rejected by the Land and Environment Court on Monday afternoon.
Justice John Robson found the interim report had been published without procedural fairness to the council.
However, he rejected claims NSW Minister for Local Government Ron Hoenig or deputy secretary of the Office of Local Government Brett Whitworth showed actual or apprehended bias in releasing the report.
He dismissed the majority of the case and ordered submissions on costs.
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