The New South Wales Independent Commission Against Corruption (ICAC) recently concluded an investigation that revealed the involvement of three former councillors in serious corrupt activities. The former members, Vincenzo Badalati, Constantine Hindi, and Philip Sansom, who served on the Hurstville and Georges River Council in Sydney’s south, were found guilty of accepting bribes from developers Philip Uy, Yuqing Liu, and Wensheng Liu. These bribes were given in exchange for their approval of two large development proposals, namely the Treacy Street development and the Landmark Square development, which took place between 2014 and 2021.
According to ICAC, Vincenzo Badalati and Constantine Hindi individually received approximately $70,000 in connection to the Treacy Street development in 2015 and around $100,000 for the Landmark Square Development in 2018 from Philip Uy. Additionally, they, along with Constantine’s wife, Mireille Hindi, accepted payments for accommodation at the Beijing International Hotel in April 2016, costing about $150 per room per night, as well as flights from Beijing to Shenzhen, amounting to $363 per person, also sponsored by Mr. Uy.
Furthermore, Vincenzo Badalati, Constantine Hindi, and Mrs. Hindi accepted payments for accommodation at the Tangshan Grand Metropark Guofeng Hotel, luxury car transfers between Beijing and Tangshan, and meals in Tangshan between April 11 and 12, 2016, costing approximately $200 per night.
The two developments that were the center of the investigation involved Wensheng Lui, through his company GR Capital Group, proposing the development of an 11-storey block of apartments at 1–5 Treacy Street, Hurstville. Additionally, One Capital, where Wensheng Lui also held roles as director and secretary, proposed the development of the Landmark Square at 53–75 Forest Road, 108–126 Durham Street, and 9 Roberts Lane, Hurstville. The Landmark Square covered an area of over 14,000 square meters. Both projects featured the involvement of Philip Uy and his company Gencorp.
ICAC noted that Constantine Hindi and Vincenzo Badalati received benefits, including flights, accommodation, and travel in luxury cars during their trip to China, where they were accompanied by Mr. Uy and/or Yuqing Liu. Additionally, it was revealed that Mrs. Hindi’s real estate agency stood to profit $500,000 from the Treacy Street development through a buyer’s agency agreement with One Capital. However, Councillor Hindi failed to disclose this pecuniary interest.
Philip Sansom, another former councillor, was found to have accepted payment for his and his partner’s return flights for a trip to China in March and April 2014. ICAC determined that this payment was intended to influence his official actions, particularly regarding the Treacy Street and Landmark Square projects.
The investigation also discovered that the three councillors failed to disclose their interests arising from their dealings with the developers. Additionally, Philip Uy was found to have engaged in serious corrupt conduct by providing these payments under such circumstances.
In response to these findings, ICAC has made 11 corruption prevention recommendations to the Department of Planning and Environment, including amending the Model Code of Conduct to prohibit council officials and councillors from accepting gifts, benefits, and hospitality from property developers. ICAC also recommends seeking an amendment to the Local Government Act 1993 to require a council’s governing body to provide reasons for approving or rejecting development applications, planning proposals, and planning agreements that deviate from staff recommendations.