Three councillors engaged in serious corrupt conduct in relation to large development proposals in Sydney’s south, the NSW ICAC has found.
The findings were made against then Hurstville/Georges River councillors Vincenzo Badalati, Constantine Hindi and Philip Sansom.
“This investigation provides instances of councillors who, contrary to the public interest, formed social and business relationships with developers and subsequently advanced the developers’ interests,” Commissioner John Hatzistergos said.
“These interactions create the impression that favourable planning decisions can be acquired by befriending and paying councillors.”
In a report handed down on Wednesday, the ICAC found Mr Badalati and Mr Hindi pocketed about $170,000 each from developer Ching Wah (Philip) Uy in exchange for favouring his interests regarding two proposed development in Hurstville.
These payments occurred in 2018, when Mr Badalati and Mr Hindi each accepted $100,000 in relation to a development in Landmark Square, and in 2015 when they each accepted $70,000 in relation to a development in Treacy Street.
The ICAC also found they voted in favour of the developments without declaring their relationships with the developers.
Mr Badalati and Mr Hindi and Mr Hindi’s wife also travelled to China in 2016 to promote the developments, where they accepted payments from Mr Uy for the flights, accommodation and travel in luxury cars.
Mr Sansom accepted payment from Mr Uy for his and his partner’s return flights to China in March and April 2014.
Mr Hindi also failed to disclose his pecuniary interest in the Landmark Square planning proposal via his wife’s Buyer’s Agency Agreement and her real estate agency, under which she Hindi stood to gain half a million dollars, the ICAC said.
The Commission has made 11 corruption prevention recommendations to DPE including that it prohibits council officials and councillors, from accepting gifts and benefits, including hospitality and contributions to travel, from property developers.
It also recommends amending the Local Government Act to require a council’s governing body to provide reasons for approving or rejecting development applications, planning proposals and planning agreements where decisions depart from the recommendations of staff.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@governmentnews.com.au.
Sign up to the Government News newsletter
Back in September 2007, the ICAC recommended “That the Minister for Planning considers making it a requirement that councils give reasons for all decisions on development applications, including decisions to approve applications” contrary to the planner’s recommendation (“Corruption risks in NSW development approval processes”) Given that sixteen years later the ICAC is again making a similar such recommendation, one has to ask why the previous planning ministers did not act on this key recommendation regarding corruption risks in the development approval process?
Also the NSWEC doing its job on statutory declarations instead of fighting those who were actively trying to prevent this in NCAT …