ICAC finds corrupt conduct in $1-million scheme concerning Awabakal LALC land
Wednesday 12 October 2022
The NSW Independent Commission Against Corruption (ICAC) has
found that four individuals, including two public officials, engaged in corrupt
conduct through a dishonest scheme involving the purported false sale and/or
development of properties owned by the Awabakal Local Aboriginal Land Council
(ALALC) that resulted in three of them deriving more than $1 million in
benefits.
The Commission’s report, Investigation into dealings
involving Awabakal Local Aboriginal Land Council land (Operation Skyline),
released today, examines the conduct of Nicholas Petroulis, solicitor Despina
Bakis, former ALALC chairperson Debbie Dates and former deputy chairperson
Richard Green, between 2014 and 2016, and their involvement in the scheme.
The scheme comprised Mr Petroulias falsely representing that
a company he controlled, Gows Heat Pty Ltd (Gows), had an option to purchase
ALALC properties that it could on-sell to another party. To provide credibility
for this representation, Ms Bakis prepared false contractual documents between
Gows and the ALALC; she also had an undeclared conflict of interest in that she
was engaged as the solicitor for the ALALC, through her legal business,
Knightsbridge North Lawyers, while also representing Gows. Mr Petroulias’
conduct included improperly altering ALALC board meeting minutes and
participation in preparing the sham agreements.
Gows’ purported option was “sold” to a third party, the
Sunshine Property Investment Group Pty Ltd (Sunshine), for more than $1
million. While Sunshine had been informed that the bulk of the money would go
to the ALALC, all of the funds went to Mr Petroulias, Mr Green, and Ms Bakis.
Mr Petroulias ultimately received over $600,000, and Mr Green and Ms Bakis
received financial benefits totalling $244,000 and $179,000 respectively.
This “sale” breached multiple requirements of the Aboriginal
Land Rights Act 1983 (the ALR Act). For example, the dealing did not have
the approval of the NSW Aboriginal Land Council as required by section 42G of
the ALR Act. In addition, Mr Green and Ms Dates signed the contractual
agreements with Sunshine on behalf of the ALALC despite lacking the authority
to do so, and other ALALC board members, staff and members were not aware of
this transaction.
The Commission found that pre-existing entrenched poor
governance, failures to follow the ALR Act, and a breakdown of communication
made the ALALC vulnerable to the corrupt conduct exposed in this investigation.
The Commission has made 15 corruption prevention recommendations, some specific
to the ALALC, but also recommends that the NSW Aboriginal Land Council and the
ALR Act registrar consider if they all should be applied to LALCs in general.
The Commission seeks the advice of the Director of Public
Prosecutions (DPP) on whether any prosecution should be commenced. The DPP
determines whether any criminal charges can be laid, and conducts all
prosecutions. The Commission is of the opinion that consideration should be
given to obtaining the advice of the DPP about the prosecution of Mr Green, Mr
Petroulias and Ms Bakis for various offences.
The Commission held a public inquiry in this investigation,
with 53 hearing days in 2018, 2019 and 2020. Former Chief Commissioner the Hon
Peter Hall QC presided at the public inquiry and 38 witnesses gave evidence. On
5 March 2021, the Chief Commissioner ruled that the public inquiry was
concluded. Further information about the progress and delay in completion of
the public inquiry is available in chapter 2 of the report. The report is
available on the ICAC website at www.icac.nsw.gov.au.
Media contact: ICAC A/Manager Communications & Media,
Sue Bolton, 0417 467 801, [email protected]
Investigation report Fact sheet