Suspended mayor Luke Smith and seven councillors were last week charged with fraud by the Crime and Corruption Commission.

The CCC alleges the eight council members acted in concert to push the council's chief executive Sharon Kelsey out of her job.

The value of the fraud is at least $100,000 and carries a maximum penalty of 20 years.

An eighth councillor has also been charged over allegations she siphoned funds into her own bank account.

Just four councillors were left after the suspensions, leading Local Government Minister Stirling Hinchliffe to declare dismissal as the only option.

"Logan City Council has lost its quorum and can no longer function effectively," he said in a statement on Thursday.

Retired senior public servant Tamara O'Shea will take the reins as interim administrator, assisted by a committee made up of the non-suspended officials Lisa Bradley, Darren Power, Jon Raven and Laurie Koranski.

Smith was suspended from his job as mayor in May last year following corruption allegations against him.

In addition to fraud, Smith was also charged last week with two counts of misconduct in relation to public office.

The CCC alleges he started a dishonest probation process for Ms Kelsey and interfered in the recruitment process of another person.

On Wednesday, Smith was also charged with drink driving and breach of bail offences after crashing his car south of Brisbane.

Police say he was more than three times over the limit when his car ploughed into a parked vehicle and hit a tree on his way to KFC.

Smith did not appear in Beenleigh Magistrates Court on Thursday and was granted bail to reappear in the same court on May 23.

Whistleblower and division five councillor Mr Raven is not accused of wrongdoing, and supports the government's decision.

"For the good of the city it needed to be done," he told AAP.

"We (weren't) able to make decisions as a council and there are serious legal consequences to the council being unable to make decisions."

Mr Raven said he would seek to regain his job at a March election.

The Local Government Association of Queensland has slammed the government's decision, saying the councillors charged have been denied natural justice.

"It would appear the move against the council at this time was driven by political expediency rather than good governance," chief executive Greg Hallam said in a statement.

Logan is the second council to be sacked by the state government in less than a year, after alleged widespread corruption in Ipswich.

A Crime and Corruption Commission investigation found Ipswich City Council's culture was allowed to rot for years, to the point where corruption was no longer recognised.

More than a dozen people connected to that council, including former mayors Paul Pisasale and Andrew Antoniolli, have been charged with criminal offences.

Australian Associated Press