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An explosive report by Victoria's anti-corruption watchdog has found a former mayor at a Melbourne council was given cocaine in exchange for escalating the business interests of a local construction manager.
The Independent Broad-based Anti-corruption Commission (IBAC) today released the findings of Operation Leo, which was set up in May last year to investigate allegations of bribery by councillors at Moonee Valley City Council (MVCC) in Melbourne's inner north-west.
The 32-page report laid bare "systemic corruption vulnerabilities relating to councillor integrity obligations", including claims that on multiple occasions between 2020 and 2022, former mayor Cameron Nation bypassed council processes to fast-track property applications in exchange for cocaine from a construction manager connected to the applications.
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The commission also claimed councillors may have been bribed by a local soccer club to leverage exclusive access to a sporting ground in the municipality.
IBAC heard the unnamed construction manager "regularly" supplied Nation and his partner with cocaine and Xanax, and sometimes provided him with the drug in exchange for influencing council permit application decisions in his favour.
The report says that in early March 2021, Nation's partner picked up cocaine from the construction manager's house after the then-mayor offered to help change parking signage outside a business owned by relatives of the construction manager.
"[My partner] wants a little bit of cheek [cocaine]," a text message from Nation to the construction manager read.
"I'll sort out [street address of the business] for it."
The council told IBAC the signage was changed, but claimed other council officers acted independently and followed due process.
The commission said Nation also received cocaine from the building boss for influencing a council decision on a planning application for a townhouse development in his name.
"Can u check where it is at please…7 [grams] of the best," a June 2021 text from the construction manager to Nation read.
In December 2021 Nation was offered "14 of the best", referencing 14 grams of cocaine, in return for his help with a planning application which was being prevented by the council due to floodplain guidelines.
In response, Nation asked for the address of the property, but the IBAC could not determine whether the deal went ahead.
When examined by the IBAC, Nation said his fellow councillors had no knowledge of his relationship with the construction manager.
He initially denied the allegations against him, but later conceded the text message evidence showed "a clear offer of assistance in exchange for cocaine", the report said.
The IBAC also asserted the construction manager joined forces with the Essendon Royal Soccer Club (ERSC), to discuss potential bribes to councillors in an attempt to leverage access to Cross Keys Reserve in Essendon.
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In an intercepted phone call between the construction manager and the ERSC president in April last year, the builder claimed Nation and a second councillor requested payment to get a third councillor "on board" to secure a vote in favour of the ERSC at an upcoming meeting.
Bribes of $15,000 each per year over a four-year period or a one-off payment of $40,000 to $50,000 to be split between the councillors were allegedly discussed.
The watchdog could not substantiate whether any bribes were paid and Nation denies requesting any money from the construction manager.
Despite this, the commission said Nation and two other councillors received "other inducements" from the ERSC, including paid dinners, free memberships and an invitation to an event.
The report said alongside Nation, Deputy Mayor Narelle Sharpe and Councillor Jacob Bettio "used their positions to influence MVCC decisions in favour of the ERSC and at the expense of other local sporting groups and the wider municipality".
"These councillors consciously engaged in voting on MVCC matters related to the ERSC, despite receiving undeclared hospitality from the ERSC," the IBAC report said.
"They actively sought to secure votes to grant the ERSC exclusive access to Cross Keys Reserve and Pavilion, outside formal MVCC meetings."
IBAC Commissioner Victoria Elliott said the councillors' behaviour "erode the community's trust in their local government".
"As elected officials, councillors are responsible for engaging with a wide variety of community stakeholders, council staff, and their fellow councillors, in a lawful and constructive manner," she said.
"IBAC identified that some councillors contravened these obligations by failing to follow proper processes, not declaring conflicts of interest, not declaring gifts and hospitality and not reporting suspected corrupt conduct."
Nation served as mayor of Moonee Valley council from October 2020 to October 2021.
