NSW Local Government Minister Gabrielle Upton announced a statewide council audit after the former general manager of Hay Shire Council Allen Dwyer rang up a credit card debt of $500,000.

Ms Upton said it was “simply not good enough” and that there would be “sweeping” reforms to stop this kind of thing from happening again.

Griffith City Council Mayor John Dal Broi said he welcomed the new measures, which would bring in more transparency for ratepayers.

“Any changes that make councils more accountable is welcomed. We have nothing to hide here at Griffith City Council,” Cr Dal Broi said.

“I think these new measures will only help councils ensure they are doing the right thing.” 

The news comes in the lead-up to a report which will be presented to Griffith councillors at the next ordinary meeting on November 27 detailing councillor expenditure.

“An independent auditor already regularly conducts credit card review, which is reported to the audit risk and improvement committee and then to Council,” Cr Dal Broi said.

“Aside from a rigorous approval process and definitely no cash advance facility on any credit cards, we’ve also adopted a fraud framework and credit card policy.”

Under the new measures every council must create an audit, risk and improvement committee if they don’t have one, as well as a review of each local government's fraud prevention controls.