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AAP
AAP
National
Cheryl Goodenough

Former Qld councillors in court over fraud

Ex-Logan mayor Luke Smith and seven councillors are facing a committal hearing charged with fraud. (AAP)

A Queensland councillor suggested his colleagues record confidential meetings because they were concerned about corrupt conduct, a court has heard.

Logan mayor Darren Power told Brisbane Magistrates Court on Monday it was his idea to record the confidential proceedings, although he didn't do it himself.

He was testifying in a committal hearing after former mayor Luke Smith and seven councillors were charged with fraud over the sacking of their chief executive Sharon Kelsey in February 2018.

Smith, former deputy mayor Cherie Marie Dalley and councillors Jennifer Rachel Julie Breene, Russell Bruce Lutton, Phillip Wayne Pidgeon, Trevina Dale Schwarz, Laurence William Smith and Stephen Fredrick Swenson are charged with fraud.

Luke Smith is also charged with misconduct in relation to public office.

Mr Power told the court he was "disappointed" to find out Ms Kelsey said in her Logan City Council job interview she had left another council to pursue further education but had actually been told to resign or face dismissal.

"I was disappointed when I found out at the QIRC (Queensland Industrial Relations Commission), but I understand the situation because I've seen what happens in the political world," he said.

Mr Power added it was common for senior employees to be "pushed out the door" when new councils are appointed.

Ms Kelsey was employed on a package of more than $500,000.

Mr Power confirmed under questioning he explained his concerns about "corrupt conduct that was occurring in the council" to newly elected councillors Laurie Koranski, Jon Raven and Stacey McIntosh.

He was asked if councillors got busted recording. He said that was correct.

Then asked if one or more councillors lied saying they weren't recording when in fact they were.

He said that was also correct.

Ms Kelsey was sacked four months after giving information to the state corruption watchdog about alleged possible misconduct by Luke Smith.

Days before terminating Ms Kelsey's employment, councillors were told it would be unlawful to do so because she made the disclosure, or because she had started Industrial Relations Commission proceedings.

Logan City Council was dissolved in May 2019 and an administrator appointed following the arrest of Smith and the councillors.

A new council was elected this year.

The committal hearing is set down in Brisbane Magistrates Court for two weeks.

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