Dodgy developer payments, donations sent to prosecutors

IBAC acting commissioner Stephen Farrow and deputy commissioner David Wolf have faced the media. (Joel Carrett/AAP PHOTOS)

A property developer corruption scandal could lead to criminal charges and prompt a crackdown on political donations and council planning powers.

Casey councillors Sameh Aziz and Geoff Ablett accepted almost $1.2 million in payments to promote the interests of developer John Woodman and his clients, the corruption watchdog has found. 

The Operation Sandon report, tabled in state parliament on Thursday, said the pair repeatedly failed to declare conflicts of interest and continued trying to influence other councillors even when they did.

The Independent Broad-based Anti-corruption Commission investigation centred on four planning proposals involving Mr Woodman and his clients, including one to rezone land in Cranbourne West as residential to increase its value.

Beyond the council, Mr Woodman donated more than $470,000 to the Labor and Liberal parties between 2010 and 2019 to access state decision-makers, and to the election campaigns of three Labor MPs.

Acting commissioner Stephen Farrow said evidence collected by IBAC would be sent to prosecutors for criminal consideration.

"Where we have evidence that may constitute a criminal offence, we provide that to the Office of Public Prosecutions," he said.

Mr Farrow said the inquiry exposed significant weaknesses in the planning system, with conflicted councillors able to easily manipulate the process, while developers and consultants could buy access to decision-makers.

Mr Woodman has fought the report's release through the courts since March 2022, including a failed appeal on Monday.

In his official response, he declared there was no evidence his work as a consultant was to improperly influence and claimed he did not rely on support from Mr Aziz and Mr Ablett.

The Labor and Liberal parties agreed to accept membership payments in instalments from different accounts or entities to allow Mr Woodman not to federally declare the contributions.

Between $10,000 and $27,000 was donated to each of the election campaigns for Labor's former Cranbourne MP Jude Perera, his successor Pauline Richards and Narre Warren MP Judith Graley.

The watchdog ruled Mr Woodman successfully lobbied two MPs he donated to but Ms Richards was singled out with an adverse comment.

There was no evidence Ms Richards approached then-planning minister Richard Wynne or his office before he rejected the Cranbourne West land rezoning proposal in 2020.

Ms Richards admitted she could have been more circumspect in accepting Mr Woodman's "generous offer" but denied furthering his interests, which IBAC accepted.

"I look forward to continuing to represent Cranbourne," Ms Richard said.

No adverse findings were made against Mr Wynne, Treasurer Tim Pallas or Premier Daniel Andrews among other ministers and MPs.

The 308-page report did not name former City of Casey mayor Amanda Stapledon, who did not provide a response before dying by suicide in 2020.

The watchdog made 34 recommendations, including stripping councils of statutory planning responsibilities and a possible political donations ban on high-risk groups such as property developers.

Mr Andrews refused to say if charges should be laid over Operation Sandon, declaring it would be inappropriate for him to offer an opinion.

The Victorian government will consider each of the recommendations but is yet agree to the reforms.

Mr Andrews flagged the decision-making powers of councils should be reduced, hinting senior bureaucrats could provide advice to the planning minister on large-scale proposals.

"I'm not saying there's a model here that's got like zero risk," he said.

"I don’t know that you can ever build that but it would be a much-reduced risk."

Opposition Leader John Pesutto said planning powers should not be taken from councils and handed to the government.

"You've got to be kidding - that is not the responsible way forward," he said.

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