Corruption Matters - October 2022 | Issue 60
Investigation into dealings involving Awabakal Local Aboriginal Land Council land
A recent ICAC investigation report described how individuals took advantage of a dysfunctional local Aboriginal land council (LALC) to improperly obtain over $1 million in corrupt benefits.
In a report released this month, the ICAC found that the chairperson and deputy chairperson of the Awabakal Local Aboriginal Land Council (ALALC), Debbie Dates and Richard Green respectively, entered into a corrupt scheme with Despina Bakis and Nicholas Petroulias to purportedly sell and/or develop ALALC land.
Mr Petroulias falsely represented 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
- Mr Petroulias improperly altered ALALC board meeting minutes.
Gows’ purported option was “sold” to Sunshine Property Investment Group Pty Ltd (Sunshine) for over $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 instance, 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.
This scheme was facilitated by a climate of dysfunction in the ALALC that included:
- infrequent board meetings
- no members meetings being held during 2015
- a factionalised board with Ms Dates deliberately arranging board meetings at times members of the opposing faction could not attend
- Ms Dates and Mr Green making unsubstantiated allegations against the ALALC CEO and then using these allegations to suspend him
- Ms Dates appointing an acting CEO who lacked relevant skills and experience
- Ms Dates frequently intervening in the financial management of the ALALC, including making payments from the ALALC’s bank accounts that were not authorised by other board members.
The Commission’s investigations into LALC land dealings have shown that LALCs can be vulnerable to unscrupulous approaches from external parties such as developers, and/or dishonesty and exploitation by their own officers. This investigation demonstrates that these risks can be enhanced when there is turmoil within a LALC.
The Commission has made 15 corruption prevention recommendations to help minimise the risk of future corrupt conduct.
The investigation report can be accessed here.
|