Rockdale Council

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Rockdale Council Developments Investigation
Issues and Implications for Councils
Mr Mal Brammer APM Executive Director, Strategic
Operations Independent Commission Against
Corruption
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Unfortunately, many police organisations around
the world have only ever undergone improvement
and reform following some external pressure or
review. Such a process is known as the Scandal
Reform Cycle. A police organisation is shamed
through public exposure of corruption and/or
maladministration significant reform is
introduced a period of quiet follows and then
the next scandal is uncovered Robinette 1991
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Organisations dealing with scandals Shell be
right mate, its no longer a problem, they fixed
it, its gone away
Organisations dealing with corruption Like
painting the harbour bridge a task with no
beginning and no end
Local Council Code of Conduct Decisions to be
made solely in the terms of public interest. We
will not do so in order to gain financial or
other benefits for us our our family
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The Devil in Development a historical
perspective

• 1991 ICAC public report
• Suborning, soliciting and offering of payments to
  public officials
• Practices relating to donations to political
  parties
• Ill-defined lobbying

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But if there is a form of payment that can be
made, and accepted, without fear from the law or
from public opinion, then there is an obvious
threat to fair and honest government. There is a
risk that if nothing is done now to address the
problem, donations to political parties will fill
that role Assistant Commissioner Adrian Roden,
1991
- parallels with the exposures of Rockdale
Council
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Corruption Prevention Taking the Devil out of
Development

• 2000-2001 extensive ICAC research
• June 2001 research report identified
  corruptions in development applications as one of
  the four major corruption risks
• First Taking the Devil out of Development
  discussion paper released November 2001
• Putting people in the picture
• Systems issues
• Challenges faced by councillors

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Corruption Prevention Taking the Devil out of
Development
Around the same time, ICAC started investigating
Rockdale Council and the administration of
development applications Interim report issued
early May 2002 Second paper released late May
2002
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Corruption Exposed a trophy or an aberration?

• Public report into Operation Trophy conduct of
  certain Rockdale Council councillors, developers
  and others involved in Development Applications
• Findings of corrupt conduct
• False and misleading evidence given
• Recommendations of criminal prosecutions
• Systems presence poorly implemented and managed

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Corruption Exposed a trophy or an aberration?

• Shifted the emphasis of our corruption prevention
  project
• From risks affecting councillors
• To risks in development application process
• Issues needing attention
• Political donations
• Binding caucus votes on DAs
• Conflicts of interest
• How councillors influence staff

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Catching up with the Devil at Rockdale
When investigating crime and corruption cast
the net wide Solicitation of bribes is a
secretive process Vital that identity of all
engaging in corrupt activities be
established ICAC investigation generated an
overwhelming weight of evidence
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Catching up with the Devil at Rockdale

• Full and extensive use of a number of ICACs
  powers
• Covert electronic surveillance
• Broadened technological capacity
• Additions to Commission skill sets
• Provide public with greater insight into
  behaviour involved

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Challenges to the Management of the Investigation
Challenges regarding ongoing development
applications Risks to the investigation balanced
against community interests Development
applications proceeding would risk development by
corrupt means Doubts over consent with law as it
stood (now addressed through changes to the law)
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Challenges to the Management of the Investigation

• Challenge to sort the hay from the chaff
• Identify and profile development sites to
  determine if they were sites of interest
• Used information from
• Councils website
• Inside sources within Council
• ICACs own knowledge of local government

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What are the resulting future implications for
Councils?

• Could have happened at any other Council
• Could happen again in the future
• Meaningful reform requires contribution and
  support of stakeholders
• Pressing issues
• Identifying and managing conflicts of interest
• Caucus voting on developments
• Transparency and scrutiny of political
  donations

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What are the resulting future implications for
Councils?
Complex issues requiring thoughtful, considered
discussion ICAC to release a series of
recommendations for further reform Parliament
passed legislation to suspend a Councillor
pending dismissal for serious conduct
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What are the resulting future implications for
Councils?
Legislation also allows Commissioner to recommend
consideration of dismissal of whole Council if
systemic corruption exists Commissioner may
recommend planning administrator and suspension
of any developments gives option to covertly
investigate Development Applications through to
the grant of consent
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Some philosophical thoughts for the future
Growth of corruption not a sudden aberration Not
a passing problem or problem of our times Affects
the innocent as much as the guilty Full account
of the environment considered Devil in
developments is anything but a passing phase of
history
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Some philosophical thoughts for the future
Commission of inquiries do not provide lasting
solutions Robust and active strategies required
for a fundamental and lasting approach Everyone
shares that responsibility If we do not listen we
do not learn, if we do not seek we do not find
and if we do not use knowledge we cannot improve
integrity and manage corruption risk
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Some philosophical thoughts for the future
Outcomes will occur through robust, determined
and effective leadership at the sector corporate
level Corruption resistance in local government
is about building organisational integrity It is
a leadership responsibility to bring policies and
practices to life
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Some philosophical thoughts for the future
The light that brings the long awaited storm to
whirl the fleet about from prow to stern, and set
it sailing a straight course again. Then from the
blossom shall good fruit come forth. The Divine
Comedy (1308) Dante Alghieri