Two convicted criminals posing as corruption commission officers offered to rewrite a file of evidence against a town planner in exchange for cash and sex, a NSW inquiry has been told.
Former town planner Beth Morgan is one of 14 people under investigation at an Independent Commission Against Corruption (ICAC) inquiry into Wollongong City Council.
Ms Morgan told today's hearing she met two men, Ray Younan and Gerald Carroll, whom she believed were ICAC officers, in January 2007 through developer Frank Vellar.
At a meeting at a cafe in Appin that month, Mr Younan, with Mr Carroll's knowledge, asked her for $100,000, she said.
"He (Carroll) said that if I did what I was told and went along with what he wanted he could rewrite the report at ICAC so I wasn't made out to be corrupt and that I had to go along with what he wanted otherwise he would see me hang," she told the inquiry.
Ms Morgan said she later told Mr Vellar, with whom she was having a relationship, she could not pay that much and he spoke to Mr Younan and Mr Carroll about it.
"Mr Vellar ... approached me and said that they have, Gerry has, agreed to $50,000 and for you to sleep with Gerry as payment for the other $50,000," she said.
"I said there is no way I'm sleeping with Gerry."
Ms Morgan said she paid the pair $50,000, money she had gained in her divorce settlement.
She believed Mr Vellar had also paid around $120,000.
She said Mr Younan had known "to the dollar" what her divorce settlement was and the value of several payments she had received from developer Bulent "Glen" Tabak.
"He knew a number of things I hadn't told him," she said.
Ms Morgan said she had not gone to the authorities because she had been frightened by Mr Carroll and Mr Younan, and believed Mr Vellar was also.
"I was scared of what they would do," she said.
"They said to Frank that if she ever talks about anything she's going to end up six feet under ... I believed it."
When told Mr Vellar and Mr Younan had travelled to the Middle East together on two occasions, she broke down in tears and left the stand.
Given a few minutes to compose herself she returned to continue giving evidence.
Ms Morgan also was asked to set up meetings with Mr Tabak and businessman and developer Michael Kollaras over their statements to the commission, the inquiry was told.
The inquiry was told that Ms Morgan had herself made several false statements to the commission prior to the start of the public hearing.
When asked why she had changed her answers, she said: "Because there is only so long in your life you can go along putting up with it and then you eventually have to take the stand and say what the truth was.
"You have to face it you'll either cross that bridge now or it's going to haunt you forever."
Earlier, the inquiry was told Ms Morgan, who worked at the council between 2000 and 2007, had logged on under a colleague's name to hide her involvement in a development consent for a $4 million development in Wollongong.
Ms Morgan denied the claim, saying she had used the computer with her colleague's permission.
Counsel Assisting the Commission Noel Hemmings said the colleague had told the commission he had not given his consent for his log-on to be used.
"Well I believed he did give me the right to use his computer because when you leave a computer you're supposed to shut it down or turn it off," she said.
Ms Morgan has admitted to accepting gifts and having sexual relationships with three developers involved in a number of projects in the city.
The inquiry, before commissioner Jerrold Cripps, continues tomorrow.
READ BETH MORGAN'S EMAILS TO HER LOVER IN THE ILLAWARRA MERCURY'S SPECIAL COVERAGE WEDNESDAY
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