Former Wollongong City Council planning officer Beth Morgan corruptly approved building applications after she formed sexual relationships with three developers, an Independent Commission Against Corruption public inquiry heard yesterday.
In a 50-minute opening to the two-week inquiry in Sydney, counsel assisting Noel Hemmings, QC, alleged Ms Morgan was showered with cash and gifts, including a holiday to China, in return for assessment and approval of multi-million-dollar projects that breached the city's building codes and guidelines.
Yesterday Ms Morgan gave evidence that she and developer Frank Vellar had ended a three-year relationship last Thursday.
She told the inquiry of regular cash payments from Mr Vellar of between $1000 and $2000 as well as gifts of holidays, home renovations and a digital camera.
"The gifts that I received from Mr Vellar were given to me not for my position at council but because of the relationship we had at the time," Ms Morgan said.
In a bizarre twist, Mr Hemmings also alleged that six people at the centre of a long-running investigation by the corruption watchdog had paid at least $500,000 to two criminals posing as ICAC officers.
In a multi-layered investigation, ICAC claims the money was handed over to con men Ray Younan and Gerald Carroll in the belief the money would be used to buy off corrupt ICAC officers and get them off the hook with the investigation.
Mr Hemmings named 12 people, whose conduct ICAC claims warrants scrutiny and who are, or may be, "affected" persons under the ICAC Act.
The investigation started after ICAC officers raided the offices of Wollongong City Council in December 2006, and seized computer hard drives and personal organisers.
Earlier this month and again last week, Ms Morgan and three developers - Mr Vellar, Glen Tabak and Michael Kollaras - were named in an ICAC public notice published in the Mercury.
The notice named the start of yesterday's public inquiry in which 20 witnesses are expected to be called, and an investigation into allegations that persons may have engaged in corrupt conduct in connection with applications submitted by the developers and assessed by Ms Morgan.
The notices and the publication of names drew criticism from prominent Wollongong lawyer Mark McDonald, who described the ICAC public inquiry process as "naming and shaming".
Yesterday, Mr Hemmings told the inquiry that Ms Morgan's employment with the council had been terminated in June 2007 because of serious misconduct.
Aside from Ms Morgan, and Messrs Tabak, Vellar and Kollaras, ICAC named as persons whose conduct warranted scrutiny as:
*John Gilbert, the council's manager of development, assessment and compliance from late 2003 until he resigned in late 2007. The commission will examine him in relation to his close relationship with Mr Vellar, his knowledge of Ms Morgan's relationship with Mr Vellar and his overall role in the assessment and approval of development applications involving Mr Vellar, Mr Tabak and Mr Kollaras.
*Rod Oxley, who served as general manager of the council for 19 years, before his resignation in May 2007. The commission will examine his relationship with Mr Vellar, his possible knowledge of Ms Morgan's relationship with Mr Vellar, his supervision of the exercise of delegations by him to Ms Morgan and Mr Gilbert and his alleged failure to enforce and implement council policies and procedures and environmental planning instruments in respect of non-conforming or prohibited development.
*Former council manager of engineering services and group manager sustainability Joe Scimone, who resigned last year in the wake of sexual harassment claims against him. The commission will examine his relationship with developers, particularly Mr Tabak, his awareness of Ms Morgan's relationships and the alleged payment of cash intended to pervert the course of the ICAC investigation.
*Ray Younan and Gerald Carroll, who allegedly took at least $500,000 from six people while posing as corrupt ICAC officers.
*Wollongong City Councillor Frank Gigliotti will be examined by the commission on his alleged dealings with Younan and Carroll in relation to a separate ICAC investigation into an allegation that developer Lou Tasich offered a $30,000 bribe to a council officer and his alleged dealings with Mr Vellar in 2006.
*Lou Tasich, who was found by the commission o have offered a $30,000 bribe to a council officer.
*Val Zanotto, Wollongong City councillor and chairman of the council's governance and audit committee which has oversight for the council's code of conduct. The commission will investigate his relationships with Mr Vellar and his alleged payment of cash intended to pervert the course of the ICAC investigation.
The allegations against Ms Morgan and the three developers centre on four construction projects in or near the city's CBD.
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