Report on the Investigation of Alleged Public Sector Misconduct at the City of Wanneroo.Pdf
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CORRUPTION AND CRIME COMMISSION REPORT ON THE INVESTIGATION OF ALLEGED PUBLIC SECTOR MISCONDUCT AT THE CITY OF WANNEROO 3 December 2009 ISBN: 978 0 9805051 5 3 © 2009 Copyright in this work is held by the Corruption and Crime Commission. Division 3 of the Copyright Act 1968 (Commonwealth) recognises that limited further use of this material can occur for the purposes of “fair dealing”, for example, study, research or criticism. Should you wish to make use of this material other than as permitted by the Copyright Act 1968 please write to the Corruption and Crime Commission at the postal address below. This report and further information about the Corruption and Crime Commission can be found on the Commission Website at www.ccc.wa.gov.au. Corruption and Crime Commission Postal Address PO Box 7667 Cloisters Square PERTH WA 6850 Telephone (08) 9215 4888 1800 809 000 (Toll Free for callers outside the Perth metropolitan area.) Facsimile (08) 9215 4884 Email [email protected] Office Hours 8:30 a.m. to 5:00 p.m., Monday to Friday. CORRUPTION AND CRIME COMMISSION Mr Malcolm Peacock Mr Peter John McHugh Clerk of the Legislative Council Clerk of the Legislative Assembly Parliament House Parliament House Harvest Terrace Harvest Terrace PERTH WA 6000 PERTH WA 6000 Dear Mr Peacock Dear Mr McHugh As neither House of Parliament is presently sitting, in accordance with section 93 of the Corruption and Crime Commission Act 2003 (“the CCC Act”), the Commission hereby transmits to you a copy of the Corruption and Crime Commission Report on the Investigation of Alleged Public Sector Misconduct at the City of Wanneroo. The Commission notes that under section 93(3) of the CCC Act a copy of a report transmitted to a Clerk of a House is to be regarded as having been laid before that House. Yours faithfully The Hon. LW Roberts-Smith, RFD, QC COMMISSIONER 3 December 2009 ABBREVIATIONS AND ACRONYMS ALP Australian Labor Party “the CCC Act” Corruption and Crime Commission Act 2003 CEO Chief Executive Officer “the City” City of Wanneroo “the Commission” Corruption and Crime Commission Cr Councillor DA Development Approval DLGRD Department of Local Government and Regional Development1 DPI Department for Planning and Infrastructure DPS2 District Planning Scheme No. 2 “the EC Act” Electricity Corporations Act 2005 “Eclipse” Eclipse Resources Pty Ltd “Garden Glow” Garden Glow Growers Mart “Goldrange” Goldrange Pty Ltd “the LG Act” Local Government Act 1995 MLA Member of the Legislative Assembly of the Parliament of Western Australia MRS Metropolitan Region Scheme “the PSM Act” Public Sector Management Act 1994 SAT State Administrative Tribunal “the SD Act” Surveillance Devices Act 1998 (WA) SD Surveillance Device(s) SP Structure Plan “the TI Act” Commonwealth Telecommunications (Interception and Access) Act 1979 TI Telecommunications Intercept (or Interception) TPRC Tamala Park Regional Council WALGA Western Australian Local Government Association WAPC Western Australian Planning Commission WTPS Wanneroo Town Planning Scheme 1 From 1 July 2009 the Department of Local Government and Regional Development (DLGRD) became the Department of Local Government, and the Department of Regional Development and Lands, www.dlgrd.wa.gov.au, viewed 18 November 2009. v TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .................................................................. v EXECUTIVE SUMMARY ...................................................................................... xi Introduction ............................................................................................................xi Mr Salvatore (Sam) Salpietro and Mr Jon William Kelly ........................................xi Eclipse Resources Pty Ltd: Flynn Drive .................................................................xi Eclipse Resources Pty Ltd: Western Power ........................................................ xiii Garden Glow Growers Mart (“Garden Glow”) .......................................................xv Chairmanship of Tamala Park Regional Council .................................................xvi Lots 2 and 3 Kingsway, and Lot 29 Landsdale Road, Darch ............................. xviii Public Officers Approached to Block an Application ............................................xxi Mr Kelly and Mr Salpietro’s Relationship with Mr Burke ..................................... xxii CHAPTER ONE BACKGROUND .................................................................................................... 1 1.1 Commission’s Jurisdiction ........................................................................... 1 1.1.1 Definition of Public Officers ............................................................ 1 1.1.2 Commission Jurisdiction and Non-Public Officers .......................... 1 1.1.3 Definition of Misconduct ................................................................. 2 1.1.4 Reporting by the Commission ........................................................ 3 1.1.5 Disclosure of Information ............................................................... 5 1.1.6 Telecommunications Interception Material ..................................... 5 1.1.7 Privacy Considerations .................................................................. 5 1.1.8 Opinions of Misconduct: Standard of Proof .................................... 6 1.2 Commission Investigation ........................................................................... 6 1.3 Relevant Entities ......................................................................................... 8 1.3.1 Mr Brian Thomas Burke ................................................................. 8 1.3.2 Mr Julian Fletcher Grill ................................................................... 8 1.3.3 City of Wanneroo ........................................................................... 9 1.3.4 Mr Jon William Kelly ..................................................................... 10 1.3.5 Mr Salvatore (Sam) Salpietro ....................................................... 10 1.3.6 Other Elected Members ............................................................... 11 1.3.7 Mr Roman Wolodymr Zagwocki ................................................... 11 1.3.8 Mr Rodney Malcolm Peake .......................................................... 12 1.3.9 Other City Staff ............................................................................ 12 vii CHAPTER TWO LOCAL GOVERNMENT IN WESTERN AUSTRALIA ........................................13 2.1 Background ............................................................................................... 13 2.2 Legislative and Regulatory Framework in Western Australia .................... 15 2.2.1 Local Government Act .................................................................. 15 2.2.2 Local Government Codes of Conduct .......................................... 21 2.2.2.1 City of Wanneroo Code of Conduct .............................. 21 2.2.3 Local Government Standing Orders ............................................. 23 2.2.3.1 City of Wanneroo Standing Orders ............................... 23 2.2.4 Public Sector Management Act .................................................... 23 2.2.5 Guides to Best Practice ................................................................ 25 CHAPTER THREE ECLIPSE RESOURCES PTY LTD: FLYNN DRIVE ............................................27 3.1 Background: Flynn Drive Planning Applications ........................................ 27 3.2 2006: Lobbying for Zoning Changes ......................................................... 31 3.3 Mr Salpietro Asks a Colleague to Move an Amendment ........................... 61 3.4 Requirement to Disclose an Interest ......................................................... 63 3.5 Elected Members Meeting with Developers .............................................. 68 3.6 Elected Members Meeting with Applicants and City Staff ......................... 72 3.7 Elected Members Support and Advice to Applicants ................................. 76 3.8 Benefits Offered by Mr Burke .................................................................... 79 3.8.1 Mr Burke’s Offers of Political Assistance to Mr Kelly and Mr Salpietro ........................................................................... 79 3.8.2 Mr Burke’s Offers of Assistance to Mr Zagwocki .......................... 82 CHAPTER FOUR ECLIPSE RESOURCES PTY LTD: WESTERN POWER ...................................85 4.1 Background: Pinjar to Wanneroo Transmission Line ................................ 85 4.2 Late 2006: Lobbying to Foster Opposition to the Flynn Drive Route ......... 87 4.3 Mr Salpietro’s Letter to Western Power ................................................... 100 4.4 Involvement of Mr Tony Monaghan and Ms Dianne Guise ..................... 105 CHAPTER FIVE GARDEN GLOW GROWERS MART ................................................................107 5.1 Introduction ............................................................................................. 107 5.2 Background: 2004-2006 .......................................................................... 107 5.3 2006: Drovers Place Structure Plan ........................................................ 109 5.4 Lack of Decision on Prosecution of Mr Darryl Tedesco and Mr Raymond (Ray) Jackson ............................................................. 136 5.5 Benefits Offered by Mr Burke .................................................................