City of Perth plunged into more turmoil as CEO sacked - ABC News & Headlines – Australian Broadcasting Corporation

Michelle Reynolds was suspended as council chief executive in May. (Supplied: City of Perth)

The trouble-plagued City of Perth, which is under investigation by the local government watchdog amid ongoing governance concerns, has sacked its chief executive officer.

Mayor Bruce Reynolds read from a statement on Wednesday morning and said a special meeting of council last night had voted to "terminate Ms Reynolds' appointment, effective immediately", following an independent investigation.

He said it was a "confidential employment matter", the details of which would not be released, but the findings of the investigation were "sufficiently serious" to warrant her sacking.

Bruce Reynolds would not take questions from journalists when announcing the CEO's sacking. (ABC News: Courtney Withers)

He refused to take questions from journalists.

The decision comes just a week after Local Government Inspector Tony Brown announced a three-month inquiry into the council, telling journalists there were  "fractured working relationships and ongoing governance issues at the city".

Ms Reynolds said in a statement she was "shocked" to learn she had been sacked and would appeal the decision, which followed a four-month investigation she branded a "witch hunt".

"The allegations and investigation appear to me to be nothing more than a witch hunt designed to impinge my reputation and scapegoat me by an otherwise toxic council and likely cost the rate payers handsomely," she said.

The City of Perth has faced ongoing  allegations of dysfunction and poor governance. (ABC News: Courtney Withers)

She said the allegations against her were "individually trivial in nature" and hinted that she would have more to say about the council's dysfunction.

"The allegations and subsequent investigation process have exposed the factionalism between the views of elected members with personal agendas and the effective function of the administration of local government as a multimillion-dollar business," she said.

"The dysfunction and harmful behaviours at the City of Perth, in particular amongst the elected members, is no secret and having been bound by confidentiality throughout the investigation I am now able to speak freely about my experiences and challenging relationship with certain members of council and intend to do so."

Ms Reynolds was sacked at a special meeting of council last night. (ABC News: Courtney Withers)

Ms Reynolds, who is not related to the mayor, was suspended from her job in May when the investigation into her began. 

Mr Reynolds said council would now put interim leadership arrangements in place while a recruitment process began for a new CEO.

"We remain focused on the City, its people and the community we serve," he said.

Local Government Minister Hannah Beazley said the local government inspector would review the process that led to Ms Reynolds being sacked as part of his probe into the council.

"I have made it very clear that I have zero tolerance for dysfunction, zero tolerance for poor governance and zero tolerance for unsustainable financial management," she said.