A SENIOR Wodonga Council employee failed to manage a conflict of interest with a consultant, Victoria's corruption watchdog has found.
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The Independent Broad-based Anti-corruption Commission (IBAC) on Thursday issued its findings on Operation Eden.
It probed allegations council officers favoured developers in return for benefits.
The investigation also explored if developers had adversely affected the performance of any public officers in their duties.
It began in September 2018 when Patience Harrington was chief executive and Anna Speedie was mayor.
No corruption or favouritism was found.
"However, IBAC's investigation did establish that a senior employee of the council failed to adequately manage a conflict of interest when they engaged a consultant for several years," IBAC reported.
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"The consultant was a friend of the senior employee.
"The senior employee disagreed the relationship with the consultant gave rise to a conflict of interest; however IBAC considered the initial and continuing engagement of this consultant did not comply with the council's policies and guidelines around procurement, recruitment, and the staff code of conduct."
The council's chief executive Mark Dixon issued a statement in response to the report stating "the senior employee referenced in the report is no longer with the council" however "their departure was not an outcome of the investigation".
"Council has been working to improve and tighten its procedures and training around staff's understanding of procurement and recruitment polices and guidelines and the requirements of the staff code of conduct in line with best-practice and the recommendations of agencies like IBAC and the Victorian Auditor-General's office," Mr Dixon said.
In its response to IBAC, published as part of the findings, the council notes councillor and staff conflict of interest is expected to be included in an internal audit plan tipped to be adopted in mid-2021.
