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Investigation Into Alleged Corrupt Conduct Involving Burwood Council’S General Manager and Others

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Investigation Into Alleged Corrupt Conduct Involving Burwood Council’S General Manager and Others INVESTIGATION INTO Level 21, 133 Castlereagh Street ALLEGED CORRUPT Sydney, NSW, Australia 2000 CONDUCT INVOLVING Postal Address: GPO Box 500, Sydney, NSW, Australia 2001 BURWOOD COUNCIL’S T: 02 8281 5999 GENERAL MANAGER 1800 463 909 (toll free for callers outside metropolitan Sydney) AND OTHERS TTY: 02 8281 5773 (for hearing-impaired callers only) ICAC REPORT F: 02 9264 5364 E: [email protected] APRIL 2011 www.icac.nsw.gov.au Business Hours: 9 am - 5 pm Monday to Friday INVESTIGATION INTO ALLEGED CORRUPT CONDUCT INVOLVING BURWOOD COUNCIL’S GENERAL MANAGER AND OTHERS ICAC REPORT APRIL 2011 This publication is available on the Commission’s website www.icac.nsw.gov.au and is available in other formats for the vision-impaired upon request. Please advise of format needed, for example large print or as an ASCII file. ISBN 978 1 921688 18 8 © April 2011 – Copyright in this work is held by the Independent Commission Against Corruption. Division 3 of the Copyright Act 1968 (Cwlth) recognises that limited further use of this material can occur for the purposes of “fair dealing”, for example study, research or criticism, etc. However if you wish to make use of this material other than as permitted by the Copyright Act, please write to the Commission at GPO Box 500 Sydney NSW 2001. Level 21, 133 Castlereagh Street Sydney, NSW, Australia 2000 Postal Address: GPO Box 500, Sydney, NSW, Australia 2001 T: 02 8281 5999 1800 463 909 (toll free for callers outside metropolitan Sydney) TTY: 02 8281 5773 (for hearing-impaired callers only) F: 02 9264 5364 E: [email protected] www.icac.nsw.gov.au Business Hours: 9.00 am - 5.00 pm Monday to Friday © ICAC The Hon Amanda Fazio MLC The Hon Richard Torbay MP President Speaker Legislative Council Legislative Assembly Parliament House Parliament House Sydney NSW 2000 Sydney NSW 2000 Madam President Mr Speaker In accordance with section 74 of the Independent Commission Against Corruption Act 1988 I am pleased to present the Commission’s report on its investigation into alleged corrupt conduct involving Burwood Council’s General Manager and others. Assistant Commissioner Theresa Hamilton presided at the public inquiry held in aid of this investigation. The Commission’s findings and recommendations are contained in the report. I draw your attention to the recommendation that the report be made public forthwith pursuant to section 78(2) of the Independent Commission Against Corruption Act 1988. Yours faithfully The Hon David Ipp AO QC Commissioner © ICAC Contents Summary of investigation and results 7 Was the security installation a justifiable Council expense? 24 Results 8 Corrupt conduct 25 Corruption prevention 10 Section 74A(2) statement 26 Recommendation that this report be made public 12 Chapter 4: Surveillance of electoral Chapter 1: Background 13 candidates 27 How the investigation came about 13 Mr Romano organises surveillance of electoral candidates 27 Why the Commission investigated 13 What was the purpose of the surveillance? 28 Conduct of the investigation 13 Was Mr Faker involved in arranging for the The public inquiry 13 surveillance of electoral candidates? 31 Burwood Council executive 14 Corrupt conduct 32 Burwood Council depot 14 Section 74A(2) statement 33 Mr Romano’s credit 14 Chapter 5: Recruiting Albert Becerra as Burwood Council’s Principal Architect 34 Chapter 2: Using Council funds to pay for surveillance and photography for personal The relationship between Mr Romano and purposes 16 Mr Becerra 34 Albert Becerra 35 Mr Romano’s role as General Manager 16 Mr Becerra’s recruitment 35 Mr Romano organises surveillance 16 Corrupt conduct 39 Corrupt conduct 19 Additional payments 40 The photographic work 19 Corrupt conduct 41 Corrupt conduct 20 Section 74A(2) statement 41 Section 74A(2) statement 20 Chapter 6: Work done on Mr Romano’s Chapter 3: Council expenditure on home driveway 42 security equipment 22 The evidence of Mr Giangrasso 42 Installation of security equipment 22 The evidence of Mr Child, Mr Issa and Mr O’Brien 43 4 ICAC REPORT Investigation into alleged corrupt conduct involving Burwood Council’s General Manager and others The evidence of Mr Romano 44 Chapter 9: Use of Council funds and entitlements 58 Lunch at Il Buco 44 Mr Romano’s expenditure of Council funds 58 Mr Romano’s dealings with Kate McClymont of the Sydney Morning Herald 45 Conclusion 59 City of Canada Bay Council pursues Mr Romano Mr Faker’s expenditure of Council funds 59 in relation to the new driveway 45 Conclusion 59 Corrupt conduct 46 Mr Romano’s Council-issued cars 60 Section 74A(2) statement 47 Corrupt conduct 61 Salary packaging 62 Chapter 7: Renovation of the Befaro Units 48 Conclusion 62 Background 48 Legal Services Panel 62 Who knew Council staff were working on the Befaro Units? 48 Conclusion 63 Conclusion 51 Section 74A(2) statement 63 Did Council staff work on the Befaro Units during Council time? 51 Chapter 10: Reprisal: legal issues 64 Corrupt conduct 53 ICAC Act provisions 64 Use of Council resources 54 PDA provisions 65 Section 74A(2) statement 54 Burwood Council’s protected disclosure policy 67 Chapter 8: Using Council depot workers at a polling booth on election day 55 Chapter 11: Youssef (Joe) Saad 68 The request for workers to attend the polling booth 55 Did Mr Saad make a protected disclosure? 68 Conclusion 56 Was Mr Saad victimised for reporting suspected corrupt conduct? 69 Mr Faker’s involvement 57 Conclusion 57 Chapter 12: Robert Cummins 73 Section 74A(2) statement 57 Did Mr Cummins make a protected disclosure? 74 Was adverse action taken against Mr Cummins as a result of his allegations? 74 ICAC REPORT Investigation into alleged corrupt conduct involving Burwood Council’s General Manager and others 5 Corrupt conduct 79 Chapter 15: Ammar Issa 110 Mr Cummins’ workers compensation proceedings 80 Did Mr Issa make a protected disclosure? 110 Corrupt conduct 81 Was adverse managerial action taken against Mr Issa for an improper motive? 111 Section 74A(2) statement 82 Corrupt conduct 112 Chapter 13: Stephen Child 83 Mr Issa is stood down from work 113 Did Mr Child make a protected disclosure? 83 Conclusion 113 Was adverse action taken against Mr Child as a Section 74A(2) statement 114 result of his allegations? 84 Corrupt conduct 88 Chapter 16: Corruption prevention 115 The re-profiling of Mr Child’s position 89 Introduction 115 Conclusion 92 Governance of council administration 115 Depot surveillance 93 Council management of the General Manager 120 Corrupt conduct 95 Councillor capacity to oversee Council 121 The suspension of Mr Child 96 Appendix 1: The role of the Commission 123 Conclusion 100 Section 74A(2) statement 101 Appendix 2: Sections 8 and 9 of the ICAC Act 124 Chapter 14: Giuseppe (Joe) Giangrasso 102 Did Mr Giangrasso make a protected disclosure? 102 Was adverse action taken against Mr Giangrasso as a result of his allegations? 103 Corrupt conduct 105 Mr Giangrasso’s suspension 107 Conclusion 108 Section 74A(2) statement 109 6 ICAC REPORT Investigation into alleged corrupt conduct involving Burwood Council’s General Manager and others Summary of investigation and results This investigation by the Independent Commission Against Council to pay IPP Consulting $15,485.80 for that Corruption (“the Commission”) related to a wide range of surveillance allegations of corrupt conduct concerning Pasquale (Pat) Romano, the former General Manager of Burwood Council 5. an allegation that John Faker, then Mayor of Burwood, (“the Council”), and other Council officers. The allegations was complicit in procuring the surveillance outlined in investigated spanned many years and many of them arose item 4 at Council expense from complaints about Mr Romano made by Council staff 6. an allegation that Mr Romano improperly manipulated to the Mayor of Burwood, the Commission and the Sydney the recruitment process when his friend and business Morning Herald. associate, Albert Becerra, gained employment as Principal Architect of Burwood Council in April 2007, In particular, the investigation examined: and whether Mr Romano and Mr Becerra managed conflicts of interest that each had in relation to this 1. allegations that Mr Romano improperly used his process position as General Manager of Burwood Council to engage IPP Consulting Pty Ltd (“IPP Consulting”) 7. an allegation that Mr Becerra was paid additional to conduct surveillance for personal purposes on a amounts (above his contracted remuneration), totalling work colleague of his wife between September and $41,400 in the first year of his employment, whether November 2007, and that he improperly caused Mr Romano or anyone else manipulated the process Burwood Council to pay IPP Consulting over $35,000 that culminated in these additional payments being for that surveillance, when the surveillance did not made, and the manner in which Mr Romano and Mr relate to Council business Becerra managed conflicts of interest that each had in relation to the process that led to these additional 2. an allegation that Mr Romano improperly caused payments being made Burwood Council to pay $650 to Nichola Tantaro, a Burwood Council contractor, for photographic work 8. an allegation that Burwood Council staff and a commissioned by Mr Romano in late 2007 for personal Burwood Council contractor were used to carry out purposes private work on a driveway for Mr Romano and that Council resources were used during this process 3. allegations that Mr Romano improperly used his position as General Manager of Burwood Council to 9. an allegation that Mr Romano improperly accessed arrange for the installation of security equipment at his Burwood Council documentation to assist him to own home and at the home of John Faker, then Mayor obtain approval from City of Canada Bay Council for of Burwood, and for the payment by Burwood Council the driveway work after it was completed of the costs for this installation and equipment 10.
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