ICAC warning from bureaucrats over Catholic cemetery deal

Senior bureaucrats have warned handing the Catholic Church control of cemetery assets could land the government in hot water with the state’s corruption watchdog.

Senior bureaucrats believe blindly handing control of ­lucrative cemetery assets to the Catholic Church could land the government in hot water with the state’s ­corruption watchdog.

The warning, sent from Investment NSW to the Department of Planning, Industry and Environment, threatens to torpedo a deal to hand control of Sydney’s most profitable cemetery assets to the church.

A June 7 letter has outlined the problem in letting one group run cemeteries without an open tender process.

“There is no evidence that the Catholic Metropolitan Cemeteries Trust/Catholic Cemetery Board are the only counter-party able to meet the well-defined needs set out in the statutory review report, and in fact they may be unable to meet the needs of other faith groups,” the letter said.

The letter was considering a church proposal to allow the Catholic Cemeteries Board to run public cemetery assets for 100 years.

An aerial view of part of Rookwood Cemetery. Picture: Sam Ruttyn

The city’s most valuable cemeteries at Campbelltown and Wallacia would be run separately from a second government-controlled administrator, according to details of a lease agreement.

The letter said: “Investment NSW considers that adoption of this model may constitute direct dealing with the CMCT.”

ICAC guidelines say the government can only enter into direct dealings with a non-government entity if their proposal is unique and their project/function is unable to be performed by any other organisation.

A separate document, from DPIE, said the “government has clearly articulated in writing that it does not believe the Catholic Archdiocese of Sydney has met the appropriate thresholds”.

“Such probity requirements exist to protect the interests of all parties, including the people of NSW,” the document said.

Last month Property Minister Melinda Pavey announced that all five cemetery trusts, including the Catholics, would be amalgamated. A church legal threat and concerns over a public backlash forced the government to delay a final decision.

Originally published as ICAC warning from bureaucrats over Catholic cemetery deal