City of Canada Bay Council – allegations concerning the Mayor and others (Operation Tolosa)
Year: 2023
Status: Completed
The ICAC investigated whether, since 2015, City of Canada Bay mayor Angelo Tsirekas sought, and/or accepted benefits, as an inducement or reward for partially and dishonestly exercising his official functions to favour the interests of I-Prosperity Group and Joseph Chidiac, in relation to planning matters affecting 1–9 Marquet Street and 4 Mary Street, Rhodes. The Commission also investigated whether Mr Tsirekas deliberately failed to declare or properly manage any conflict of interest arising from his relationships with representatives of I-Prosperity Group and Mr Chidiac; and whether I-Prosperity and Mr Chidiac have allegedly provided benefits, including overseas flights and accommodation, to Mr Tsirekas, as a reward or inducement to favour their interests in relation to Council decisions regarding planning matters affecting 1–9 Marquet Street and 4 Mary Street, Rhodes.
The ICAC also investigated whether, since 2012, Mr Tsirekas partially exercised his official functions to favour the interests of Billbergia Group, Prolet Constructions Pty Ltd and Mr Chidiac, in relation to planning matters affecting them, and deliberately failed to declare or properly manage any conflict of interest arising from his relationship with representatives of Billbergia, Prolet and Mr Chidiac.
The ICAC also investigated whether, since 2015, Mr Tsirekas partially exercised his official functions to favour the interests of Frank Bruzzano in relation to the development application for 168-172 Victoria Road, Drummoyne, and deliberately failed to declare or properly manage any conflict of interest arising from his relationship with Mr Bruzzano.
Further allegations examined included: whether, since 2015, Mr Tsirekas partially and/or dishonestly exercised his official functions and failed to disclose the nature of his relationship with Francesco Colacicco, in relation to the sale of Council property at 231 Victoria Road, Drummoyne, or development applications associated with Mr Colacicco, in return for a financial benefit; and whether between May 2015 and January 2018, former Council general manager Gary Sawyer partially and dishonestly exercised his official functions and failed to disclose the nature of his relationship with Mr Colacicco, in relation to of 231 Victoria Road, Drummoyne.
In its report on the investigation, made public on 9 November 2023, the Commission makes findings of serious corrupt conduct against Angelo Tsirekas and Joseph Chidiac.
The ICAC is of the opinion that the advice of the Director of Public Prosecutions should be obtained with respect to the prosecution of Angelo Tsirekas, Joseph Chidiac and Joseph Jacob. The Commission is also of the opinion that consideration should be given to the suspension of Mr Tsirekas from civic office with a view to his dismissal in relation to the serious corrupt conduct findings made in this investigation.
The Commission has made four recommendations to help the Department of Planning and Environment prevent the conduct identified in the investigation from recurring.
View the Operation Tolosa submissions timetable
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Findings of corrupt conduct
The ICAC found that Angelo Tsirekas engaged in serious corrupt conduct by, between November 2015 and February 2019:
- seeking and/or accepting benefits from I-Prosperity and/or Joseph Chidiac, including overseas flights and accommodation, to the value of at least $18,800, as an inducement or reward for exercising his official functions to favour the interests of I-Prosperity in relation to planning matters affecting 1–9 Marquet Street and 4 Mary Street, Rhodes, that came before the City of Canada Bay Council during the periods he was mayor
- deliberately failing to disclose a conflict of interest arising from his relationships with representatives of I-Prosperity and Mr Chidiac, when he knew he was required to do so.
The ICAC found that Joseph Chidiac engaged in serious corrupt by, between December 2015 and February 2019, providing benefits to Mr Tsirekas as a reward or inducement to favour his or I-Prosperity’s interests in relation to Council’s decisions regarding planning matters affecting 1–9 Marquet Street and 4 Mary Street, Rhodes.
Recommendations for prosecutions
The ICAC is of the opinion that consideration should be given to obtaining advice of the Director of public prosecutions with respect to the prosecution of the following persons.
Angelo Tsirekas
- for an offence of misconduct in public office and offences pursuant to section 249B of the Crimes Act 1900 (NSW) (chapter 4)
- for offences of providing false or misleading evidence to the ICAC contrary to section 87 of the Independent Commission Against Corruption Act 1988 (chapters 3 and 4).
Joseph Chidiac
- for offences pursuant to section 249B of the Crimes Act and an offence of aid and abet misconduct in public office (chapter 4)
- for offences of providing false or misleading evidence to the ICAC contrary to section 87 of the ICAC Act.
Joseph Jacob
- for offences of providing false or misleading evidence to the Commission contrary to section 87 of the ICAC Act
- for an offence of wilfully destroying a document or other thing knowing that the document is, or may be, required in connection with an investigation pursuant to section 88 of the ICAC Act, in that he deleted messages from his telephone between himself and Mr Tsirekas and Mr Chidiac.
Recommendations for disciplinary action
The Commission is of the opinion that consideration should be given to the suspension of Mr Tsirekas from civic office with a view to his dismissal in relation to the serious corrupt conduct findings made in this investigation. This recommendation under section 74C(2) of the Independent Commission Against Corruption Act 1988 is necessary because the Commission is of the opinion that prompt action is required in the public interest.
Recommendations for corruption prevention
The Commission has made four recommendations to help the Department of Planning and Environment prevent the conduct identified in the investigation from recurring.
Recommendation 1
That the Department of Planning and Environment:
- amends the Model Code of Conduct for Local Councils in NSW to expand the stand-alone categories of interests that require disclosure in written returns to include financial dealings conducted via trusts and partnerships
- produces a fact sheet and updates guidance material for councillors to provide details about their disclosure obligations to include financial dealings conducted via trusts and partnerships.
Recommendation 2
That the Department of Planning and Environment:
- amends the Model Code of Conduct for Local Councils in NSW to specifically require councillors to disclose political donations received under electoral laws of the Commonwealth, or another state or territory, as non-pecuniary conflicts of interest
- issues a circular to assist councillors in the disclosure of political donations, including those received in other jurisdictions, as non-pecuniary conflicts of interest.
Recommendation 3
That the Department of Planning and Environment:
- takes steps to require councils to proactively release relevant business papers, correspondence and reports where confidentiality under Part 1 of Chapter 4 of the Local Government Act 1993 no longer exists, either via initiating an amendment to legislation or a regulation, and/or amending the Model Code of Meeting Practice for Local Councils in NSW and The Closure of Council Meetings to the Public guidelines
- advises councils of an appropriate framework for considering the release of information previously considered confidential.
Recommendation 4
That the Department of Planning and Environment limits the ability of a council to make decisions to advance planning matters at meetings in the absence of an assessment report considering relevant matters and an associated recommendation.
Responses to ICAC recommendations
The action plan posted below has been provided by the Department of Planning, Housing and Infrastructure in response to the ICAC’s recommendations. Its publication here is to show the status of the responses. It does not constitute approval or endorsement by the Commission.
Action plan - Department of Planning, Housing and Infrastructure (pdf)
Media Releases
Witness
Download the witness list
Transcripts
View all public inquiry transcripts associated with this investigation. The Commission will endeavour to make transcripts available as soon as practicable. It cannot advise specific times for when transcripts will be published, due to factors including checking procedures to ensure compliance with any non-publication orders made under the ICAC Act. Users are also reminded that they may follow the proceedings in real time if a public inquiry is being live streamed.
Transcripts will be available once the inquiry has commenced.
Exhibits
Public notices