Sydney's most colourful deputy mayor has been blasted for his "hubris" and suspended from civic office for four months for failing to disclose his financial interest in a property when he voted on changes adding $1 million to its value.
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The NSW Civil and Administrative Tribunal found on Friday that Salim Mehajer, the property-developer-turned-deputy mayor of Auburn, breached pecuniary interest laws on three occasions between November 2012 and December 2013.
The tribunal heard last year that Cr Mehajer was present when the council voted to increase floor space ratios and building height for a family company-owned property at 3 Mary Street, Auburn. He voted in favour of the proposal.
An independent valuer found the changes increased the value of the property "in the vicinity of" $1 million.
"The breaches were extremely serious as the pecuniary interest was high," Principal Member David Patten said.
He noted that the tribunal had previously found Cr Mehajer had committed other breaches of financial disclosure laws about the same time.
"For that reason I treat these breaches as no more than another demonstration of the hubris which Mr Mehajer exhibited when entering upon his role as a councillor," Mr Patten said.
Following the tribunal's earlier decision, Cr Mehajer was suspended from office for one month. But the penalty was overturned on appeal to the Supreme Court. He was instead issued with a reprimand and his monthly fees as a councillor were suspended for three months.
Mr Patten took into account character references and the fact that Cr Mehajer did disclose his financial interest in other properties in John and Ann streets in Lidcombe, which also stood to benefit from the changes.
He also accepted that Cr Mehajer "did not intentionally commit breaches" of the law and said that disqualification from office was not required.
"There should, however in my view, be a significant sanction to make clear to Mr Mehajer and other persons who offer themselves for, or are elected to, public office in local government, that they have statutory obligations which include obligations to act honestly and transparently in the performance of their responsibilities," Mr Patten said.
"These obligations are not to be undertaken casually or lightly. Ignorance is no excuse and each councillor, upon election, is required to acquaint herself or himself with the obligations, comply with them punctiliously and if necessary take advice upon them. In the circumstances, I believe that something more than counselling or a reprimand is required in this case."
The axe is already hanging over Auburn Council, which has been given notice by the state government to show cause why it should not be suspended.