A LETTER obtained under Section 12 of the Local Government Act has revealed Shoalhaven City Council received advice to delay the sale of Bridge Road land one month before an investigation was launched.

In a letter from the Department of Local Government dated June 26, council was strongly advised by the deputy director general Ross Woodward, on behalf of the director general Garry Payne, not to proceed with the sale of land to Huscorp until the department could review the matter.

On Tuesday it was announced the department would investigate Shoalhaven City Council over its sale of the land.

The letter sent to council last month said the proposed sale of council owned land at the Nowra Hotel site was found to be a “matter of potential concern” during a Promoting Better Practice Review of council.

Mr Woodward said his department would review the matter in more detail and he requested council provide a copy of several documents.

The documents included the advertisement of the expressions of interest (EOI) for the sale of the land, reports and resolutions relating to the EOI and council’s dealings with Huscorp, the valuation received and the reports and resolution relating to the adoption of the DCP No 119.

“I strongly advise council not to proceed with the sale of this land until the department has had an opportunity to review this matter along with the material requested above,” Mr Woodward wrote.

Council was also directed to provide a response within 14 days from the date on the letter.

However on Tuesday night, during confidential session, council voted to table another letter from Mr Woodward seeking information regarding council’s expressions of interest process.

Numerous attempts were made to contact Mayor Greg Watson for comment yesterday however the Register’s calls remained unanswered.

Councillor Gareth Ward has expressed outrage at a situation he said could have been avoided.

Three months ago Cr Ward raised many of the issues that ultimately led to the Local Government Department’s investigation, but his requests to review the proposal were ignored.

“I was concerned about the credentials of Huscorp, the nature of the sale and the cost, and the secrecy involved,” he said.

“This deal was conducted under the shroud of secrecy. Why was it hidden?

“This is vindication of what I was saying all along. This could have been avoided. If council had followed my advice we would not be here.”

The secrecy surrounding the deal has continued this week, with council choosing to deal with the most recent letter from Mr Woodward in confidential sessions.

“The department wants this letter tabled, but it was dealt with in confidential sessions. Why has the community not been told?” asked Cr Ward.

Meanwhile, Mr Woodward also expressed disappointment over the fact the letter was tabled in secret.

“I understand the letter was considered in confidential session. Our intention was that it not be held back,” he said.

The South Coast Register has applied under Section 12 to have the latest letter made public.