LOCAL Government Victoria inspectors last week began interviewing Casey councillors about an alleged confidentiality breach.
The investigation follows a report in a Berwick newspaper in February this year.
It contained details of a WorkCover claim by the council's former director of community services, Jenny Lee, which had been raised at a private council session.
The reporter was interviewed a few weeks ago by LGV inspectors but said she did not reveal her source.
In a follow-up, councillors are now being questioned about the leak.
A LGV spokeswoman said she could confirm the LGV was conducting "an investigation into an alleged breach of confidentiality at Casey council".
Any councillor convicted of breaching the Local Government Act's confidentiality provisions faces a fine of up to $1100.
They would also be prohibited from acting as a councillor for seven years.
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