Council CEO sent anonymous email to media alleging 'systemic corruption'

The head of a Western Sydney council sent an anonymous email to reporters alleging "systemic corruption" by a senior staff member was being "swept under the rug".

Gail Connolly is one of three women being investigated by the NSW Independent Commission Against Corruption (ICAC) following allegations the trio subverted hiring processes at the City of Parramatta Council to benefit themselves and their friends.

She and friends and colleagues Roxanne Thornton and Angela Jones-Blayney were members of a group of local government employees dubbed the "Pink Ladies", who socialised at events over a number of years.

The ICAC inquiry on Friday heard Ms Connolly in May 2024 became concerned about alleged time sheet fraud by council courier and driver Sam Tatsis.

It was alleged this had occurred because senior council staff member Justin Mulder had estimated and manually entered the hours worked by Mr Tatsis on behalf of the driver.

The commission was shown an email sent in September 2024 to a number of reporters and Parramatta councillors from an anonymous address that outlined the allegations.

"I estimate that over the past 5 years Sam has been paid for about 800 hours of work that was never performed," the email stated.

"Justin knows it is illegal to both enter and approve other staff's time sheets."

The author of the email claimed to be a former City of Parramatta employee, but Ms Connolly on Friday confirmed she had written and sent the email while she was CEO.

Emotional scenes

The inquiry was also shown messages from Ms Connolly telling Ms Thornton to seek information from the city's payroll department about what Mr Tatsis had been paid for the previous five years.

"Then we can work out the extent of the systemic corruption (years and $)," the message stated.

Ms Connolly told the inquiry she sent the anonymous email after becoming concerned about what she perceived as a lack of progress in the investigation into the fraud allegations.

Counsel assisting Joanna Davidson SC put to Ms Connolly that the email was an "extraordinary step" to take in response to the matter.

"I did take this step because I was concerned that it would be continued to be swept under the rug, a new council would be elected … I would be terminated … and the [time sheet fraud] matter would continue into the future,"

she said.

When pressed further about the email, Ms Connolly became emotional and an adjournment was called.

Staff exits probed

The ICAC has also investigated allegations Ms Connolly misused public official functions to terminate staff who she regarded as disloyal or an obstacle or a threat to her.

A number of staff left council shortly after Ms Connolly became City of Parramatta CEO in March 2023, including chief people and culture officer Bernadette Cavanagh.

In messages between Ms Connolly and Ms Jones-Blayney shown to the inquiry, Ms Jones-Blayney described Ms Cavanagh as a "big piece of poison" who was "trouble".

Ms Connolly said she did not share that opinion of Ms Cavanagh.

It was put to Ms Connolly that she believed Ms Cavanagh was involved in an unsuccessful rescission motion which sought to have council reconsider the appointment of Ms Connolly as CEO.

"I was going to extend the olive branch to all of the executive team, regardless of my concerns around trust. Bernadette knew that," she said.

"I did not intend to go in there and exit anyone without trying to work with them first."

Ms Cavanagh's employment ended on May 26, 2023, through a negotiated deed of release that allowed for her departure to be communicated as a resignation, only eight weeks after Ms Connolly got the top job.

Ms Connolly was questioned at length about whether the exit was negotiated as a resignation or a redundancy.

It was put to Ms Connolly that she characterised Ms Cavanagh's departure as a resignation in communications to staff, councillors and the Office of the Local Government, but that another staff member continued to act in her role for 11 months after her exit.

Chief Commissioner John Hatzistergos appeared to grow frustrated during the hearing and interrupted Ms Connolly on a number of occasions to direct her to answer the questions that had been asked.

Ms Connolly was the City of Parramatta CEO from 2023 to October 2025, when a split council vote ended her tenure.

Ms Connolly is the last witness to give evidence at the inquiry, which has been running for the past four weeks.

Hearings were due to finish on Friday, but Ms Connolly will front the commission again from Thursday next week.

The inquiry continues.