The Independent Commission Against Corruption has ruled former Wollongong City Council planner Beth Morgan and developer Frank Vellar engaged in serious corrupt conduct.The commission found their conduct could constitute criminal offences. If charged and convicted, the former lovers could face more than five years in jail.Part two of ICAC's report into corruption allegations at the council found that Ms Morgan engaged in official misconduct when she aproved Mr Vellar's $100 million Quattro development in the city centre.ICAC Commissioner Jerrold Cripps, QC, has recommended Planning Minister Frank Sartor suspend the Quattro development consent, which has been temporarily suspended by the Land and Environment Court.The ICAC found Mr Vellar's conduct ``adversely affected the honest and impartial exercise of official functions'' by Ms Morgan.Below is the text of the ICAC media release:The Independent Commission Against Corruption (ICAC) today announced a finding of “serious corrupt conduct” against former Wollongong City Council Planner Beth Morgan, recommending that the Minister for Planning consider suspending the development consent – already temporarily suspended by the Land and Environment Court - granted by the Council for a proposed $100 million development known as “Quattro”.In part 2 of its Report on an investigation into corruption allegations affecting Wollongong City Council, furnished to Parliament today, the ICAC makes findings of serious corrupt conduct against Ms Morgan and developer Frank Vellar, while recommending that consideration be given to suspending the consent granted for the development by the Council in August 2005 with a view to it being revoked.The report notes that the Quattro development was proposed by Sebvell Pty Ltd, a company controlled by Mr Vellar, and is far larger than any existing or proposed comparable development in Wollongong. It also observes that the application for consent was assessed and approved by Ms Morgan, who was a senior council officer at the time and had an undisclosed sexual relationship with Mr Vellar.“The Commission has made its recommendation at this time because it believes that prompt action is required in the public interest,” Commissioner the Hon Jerrold Cripps said. “As part of a concerted plan with Mr Vellar, Ms Morgan arranged for the Quattro DA to be determined under delegated authority, when it should have been reported to the Council, and then deliberately failed to undertake any genuine assessment of it against the applicable development standards and controls because she knew that it grossly exceeded them and should not have been approved. Her conduct amounted to a wilful abuse of her position for the personal benefit of herself and Mr Vellar.”Mr Vellar specifically requested that Ms Morgan be assigned to assess the application when she returned from maternity leave in March 2004. At that time, Ms Morgan had also begun fraternising with members of the “Table of Knowledge”, a group of developers and businessmen that regularly met early in the morning, which included Mr Vellar. Ms Morgan began a sexual relationship with Mr Vellar in May that year, and began to receive gifts and benefits from him that amounted to thousands of dollars in cash, holidays, meals, home building materials and home appliances.In March 2008, Wollongong City Council commenced proceedings in the Land and Environment Court against Sebvell to revoke the consent and have it declared void. The court suspended the consent pending the final outcome of the proceedings and granted an injunction to restrain any work being carried out on the development. Sebvell subsequently made an application to the Court to discharge this injunction. The matter is next listed for mention on 18 June 2008.The Council provided a written submission to the ICAC last month that the Commission should make a recommendation under the ICAC Act about the Quattro development consent. “Having concluded that the Quattro consent was procured by serious corrupt conduct on the part of both Ms Morgan and Mr Vellar, and having regard to the unchallenged expert evidence that that consent should never have been granted, the Commission is of the opinion that prompt action to revoke the consent is required in the public interest,” the report says.As part of this investigation into Wollongong City Council, the ICAC held a public inquiry from 18 February to 4 March 2008. Part 1 of the report, issued on 4 March, recommended that all civic offices in relation to the Council be removed. The Governor of NSW promptly proclaimed as such, and appointed three administrators. The third part of the report will be released later this year. Parts 1 and 2 of the investigation report are available on the website at www.icac.nsw.gov.au. SEE THE MERCURY'S SPECIAL EDITION ON THURSDAY