Corruption Matters - May 2019 | Issue 53
Corruption in town planning – why it’s a recurring issue and how to address it
When it comes to the management and balancing of environmental, social and economic resources for the development of land, personal interests can motivate some to make improper decisions. Instances of corruption in town planning have appeared frequently in the ICAC’s 30-year history. Senior Corruption Prevention Officer Antony Pedroza explains why.
Why is town planning a corruption risk area?
Town planning can influence the value of land both directly (through development approvals) and indirectly (through planning controls set by NSW planning legislation and various state or local planning instruments).
Significant windfall profits (and losses) are possible by someone who owns, develops or has some other interest in land. The risk of corruption in town planning can emerge in circumstances where the same person decides to secure a profit or avoid a loss by inappropriately influencing one or more public officials involved in an approval (or refusal) or in the creation of planning controls.
It is worth pointing out that the corruption risk in planning is not always financial. It is quite possible for planning to involve “profits” or “losses” that are valuable but are not financial. A good example is protecting rare, native fauna or places to which some feel closely connected.
How have the issues been brought to the attention of the ICAC?
Examples of corruption in planning can be divided into two types – namely, ones that are obvious and others that are less so. The most obvious example of corruption in town planning is one where a town planner is involved in making corrupt planning decisions to benefit themselves or others. The ICAC has investigated this type of corruption throughout its 30–years of operation, including investigations of the former South Sydney Council (1992), Randwick Council (1997), and Wollongong City Council (2008).
There are, however, other examples of corruption in town planning. These involve people who, while not town planners, are otherwise working or making decisions with the planning laws of NSW or their council or both. Again, the ICAC has several examples of these.
One involved an investigation into a building surveyor at Willoughby Council (2011), who used his official powers to make planning decisions and approve construction in the Chatswood CBD. He corruptly received gifts, money, and hospitality – including expensive meals at top Sydney restaurants – from business owners who had lodged development applications. Similarly, there was a building surveyor at Parramatta Council (2005), who used power delegated to him to prematurely close investigations into brothels in exchange for free sexual services.
A common mistake seems to be that, if you are not the person making the final decision, then this somehow indemnifies someone from potentially engaging in corrupt conduct.
Past ICAC investigations have shown that it is entirely possible for a person to engage in corrupt conduct even if the agency they work for does not give them a formal or delegated power to make a decision. The ICAC has evidence from its various inquiries that people with no formal power can inappropriately influence those who do in order to secure a corrupt benefit for themselves or others.
Obviously, money is one form of inappropriate influence, but there can be many other different ways. Indeed, with planning relying heavily on argument, it is not beyond the realms of possibility that someone could provide corrupt advice in a report that might appear, on its face, to look reasonable.
What are some messages you would like to get across to professionals in this field?
First, there appears to be a view among planning professionals that “corruption in town planning rarely happens” or “corruption happens less now than it used to”. Why some planning professionals have this view is not clear but the reality is that corruption continues to occur in this area.
This view really represents a misunderstanding of what corruption in planning looks like. Planners giving approvals in exchange for cash-filled envelopes represents only one form of corruption. There are many others, however, such as editing reports to inappropriately skew the outcome in favour of private interests or cronyism in the awarding of contracts or permanent employment for planning positions.
Secondly, the complex nature of planning can hide corruption. Planning is a highly technical area of the law. For those working in this area, there is a need to understand how multiple, interrelated legal instruments and court cases apply to development and land parcels.
The ICAC has found that highly complex operating environments – especially when combined with flexibility in decision-making – can allow for a broad range of views on a single planning issue. The ICAC has expressed concern in the past that a system that provides flexibility for a wide range of views on the same point could be an issue.
Finally, fixing gaps and weaknesses in the planning system would reduce corruption opportunities. Not all the gaps and weaknesses in the planning system are obvious, however, and often they only become apparent following a thorough review.
Planners really should have the tools to identify and address gaps and weaknesses in the planning system before they can be exploited. This means planners should test the current arrangements and propose changes to identify possible solutions to safeguard the planning system from corruption.
The ICAC workshop, “Corruption Prevention for Planning Professionals”, identifies a set of tools that might assist planners in alerting them to gaps and weaknesses. How can people get more information?
Yes, in terms of specifically preventing and addressing corruption risks, this is a key part of the workshop and we spend a large part of it looking at how to identify the corruption risks.
I have run the course for some time now and we have had a range of public officials from different backgrounds attend, beyond just town planners. This has included building surveyors, economic development officers and internal auditors. I have also had council support staff attend the sessions too. The short answer is that all types of officials, regardless of seniority, should attend.
Can people call the ICAC with questions?
Yes, I am one of the officers on-call to provide corruption prevention advice on town planning. Call 02 8281 5999 or 1800 463 909 or email icac@icac.nsw.gov.au.
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Information on “Corruption Prevention for Planning Professionals” and other workshops is available on the ICAC website. |
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