Council & Business
17 July, 2026
Hepburn Shire councillors stood down
Two of seven councillors remain at Hepburn Shire, after three more automatically stood down this week as a result of privately initiated prosecutions.
Three councillors left their roles Monday following alleged criminal charges initiated by businessman David Penman, effectively shutting the council down.
In March this year, Mr Penman launched criminal proceedings privately in the Ballarat Magistrates’ Court over misconduct against then Hepburn Shire councillor Don Henderson and CEO Bradley Thomas for allegedly misusing ratepayer funds on defamation claims against him.
In accordance with the Local Government Act 2020, Mr Henderson immediately stood down from his role as councillor, with the case ongoing after it was heard in April.
Mr Thomas has since announced his resignation as CEO, which will take effect in August.
However, on Friday, July 10, Hepburn Shire mayor Tony Clark was also served with criminal charges by Mr Penman and therefore automatically stood down.
“As this matter, and related proceedings involving other council representatives, are the subject of ongoing legal processes, council is constrained in what it can publicly comment on,” council said at the time.
“It would be inappropriate to discuss the substance of the allegations, respond to legal arguments being advanced through those processes, or comment on matters that may ultimately be determined by the court.”
The council announced Cr Shirley Cornish would step into the role as mayor.
However, by July 13, Hepburn Shire publicly announced Cr Cornish, Cr Lesley Hewitt and Cr Pat Hockey had also been stood down after being served by Mr Penman.
According to the ABC, these charges relate to an allegation that Hepburn Shire Council adopted their current annual budget “without inclusion of specific financial documents”.
Council has since confirmed that after seeking independent legal advice, the 2026/27 budget was compliant with legislative requirements.
There are now only two serving councillors at time of publication, leaving the shire below quorum and unable to hold council meetings.
The council said they are “bitterly disappointed” by the matter.
“The matters are proceeding as private prosecutions and, like the previous charges, have not involved any investigation, fact‑finding process, or assessment by Victoria Police or any public prosecutorial authority,” they said.
Hepburn Shire Council cite the proceedings as a “manipulation of the Local Government Act 2020 intended not to address any reasonably suspected wrongdoing, but instead to disrupt council’s elected representatives and the fulfilment of their functions, and to hamper council’s ability to continue to serve its community”.
The council has assured residents that “day-to-day” operations such as bin collection, road maintenance and amenities like libraries will still be in operation.
“Council continues to work with the Victorian Government and relevant authorities to address these matters, and remains committed to maintaining strong governance, transparency and continuity of service to the Hepburn Shire community,” they said.