Cairns Mayor Bob Manning required to make public apology after 23 allegations of misconduct upheld by watchdog

The mayor of Cairns Regional Council failed to declare a conflict of interest more than 20 times, including when council awarded contracts totalling $16.4m to a local construction business, the state watchdog has found. Read the report in full.

Cairns mayor Bob Manning’s conduct has been subject to severe scrutiny by the OIA. Picture: Brendan Radke

The mayor of Cairns Regional Council failed to declare a conflict of interest 23 times, including when council awarded contracts and tenders totalling $16.4m to a local construction business, the state watchdog has found.

A report from the Councillor Conduct Tribunal, which is publicly available, found Mayor Bob Manning failed to make the declarations over campaign donations while considering matters involving Cairns civil contractor FGF Developments and its related company FGF Bitumen.

The conflict was a result of the Unity Team, which he led, receiving “not insubstantial” campaign donations from the company and one of its directors, Murray Moule.

News Corp is not suggesting any wrongdoing by Mr Moule or other directors of FGF Developments and its related companies.

News Corp is also not suggesting any wrongdoing by the companies themselves, being FGF Developments or FGF Bitumen, or any related entities.

The tribunal said Cr Manning’s conduct was inconsistent with the local government principles of “transparent and effective processes, and decision making in the public interest” and “ethical and legal behaviour of councillors and local government employees” because he “failed to declare a real or perceived conflict of interest as required by the (Local Government Act) at that time”.

In meetings between 2013 and 2016, Cr Manning failed to declare a conflict of interest after receiving electoral donations, a report by the Councillor Conduct Tribunal has stated. Picture: Brendan Radke

“As elected representatives in responsible positions with significant powers, councillors have great discretion and are entrusted to use their powers appropriately in the public interest,” the tribunal said in its decision.

“Any breach of this trust can have a corrosive effect on the community and its confidence in local government.

“The tribunal held the councillor’s failure to comply with the local government principles amounted to a breach of trust placed in the councillor and determined allegations … have been sustained.”

Cr Manning said he was disputing the findings.

The sustained misconduct allegations included multiple failures to disclose conflicts of interest when considering the awarding of council contracts and adopting preferred and pre-qualified suppliers during successive council meetings.

The tribunal’s report states the Unity Team received two electoral donations to the value of $1400 in March 2012 from FGF Developments Pty Ltd, as well as another donation of $1000 from Mr Moule in January 2016.

On 12 occasions between April 2013 and April 2016, Cr Manning was found to be part of council meetings that considered awarding and later council meetings which did award contracts to FGF Developments Pty Ltd with a collective value of $16,463,870.

Bob Manning has received disciplinary orders from the Council Conduct Tribunal after it sustained 23 allegations of misconduct. Picture: Brendan Radke

On another 10 occasions between June 2014 and June 2016, Cr Manning was found to be part of council meetings that considered adoption of FGF Developments or FGF Bitumen as preferred or pre-qualified suppliers to the council.

Cr Manning was also found to have failed to declare a personal interest when noting a progress report on an FGF Developments contract worth $7.4m at a council meeting in September 2012 – the contract had been awarded prior to Cr Manning’s election as mayor.

“As leader of the Unity Team, the councillor benefited from donations made by the collective entity,” the tribunal’s report said.

“While the donation value was relatively low, it was not insubstantial.

“The tribunal was satisfied on the balance of probabilities that the councillor had at least a perceived conflict of interest involving council decisions to award contracts to D & M Moule Holdings Pty Ltd, D & M Moule Investments Pty Ltd, FGF Developments and FGF Bitumen.”

Cr Manning will now have to admit he engaged in misconduct during an open council meeting within the next 60 days.

He will also be fined $250.

In considering appropriate disciplinary action, the tribunal concluded “a finding of misconduct alone can be a significant sanction and lead to reputational damage”.

“Notwithstanding, the councillor’s conduct was deemed serious by the tribunal,” the report said.

“A failure to effectively manage interests which touch upon council decisions has the potential to cast a pall of impropriety and bias over those same decisions.

“The tribunal considered that allegations … formed part of what might otherwise be called a ‘consistent course of conduct’ over numerous years.”

The tribunal said it considered Cr Manning’s public admission of his conduct important to the integrity of the local government system, and his “situation should be instructive to other councillors who might be placed in a similar position in the future”.

Cr Manning said he had received the tribunal’s decision, had sought advice and could not comment further.

He said he was not considering resigning.

“This doesn’t change anything. It has to be resolved first,” Cr Manning said.

He said he had not made plans to issue a public apology in accordance with the Tribunal’s orders.

“This is still being disputed,” he said.

A further allegation of misconduct relating to the consideration of another $1m contract was not sustained due to an “accidental omission of a conflict declaration due to the councillor not being aware that FGF Developments was mentioned in any of the documents”.

Originally published as Cairns Mayor Bob Manning required to make public apology after 23 allegations of misconduct upheld by watchdog