New land deal controversy erupts between Ipswich mayor Paul Pisasale and Lamborghini-driving developer George Cheihk

IPSWICH mayor Paul Pisasale sold his private property to a controversial political donor and developer. Now, new controversies have emerged.

Undated: George Cheihk and Paul Pisasale.

IPSWICH mayor Paul Pisasale sold his private property to a controversial political donor and developer for tens of thousands of dollars more than two market valuations.

The embattled mayor has insisted he “did nothing wrong” in selling his restaurant site to a company run by Lamborghini-driving developer George Cheihk — with both men denying knowing the other was involved during the sale.

That company later offloaded the site to council, with Cr Pisasale taking part in the vote giving the property purchase the go-ahead.

The deals mark the latest controversy for the mayor, who is subject of a Crime and Corruption Commission probe into donations.

It is understood $5000 in donated promotional goods from Mr Cheihk’s businesses in 2004 lie outside the CCC probe.

Mr Cheihk’s empire had land interests in Ipswich and other ties to Cr Pisasale, including partying together for the developer’s 35th birthday and hiring the mayor’s daughter.

In 2004, Mr Cheihk’s company paid $325,000 to Cr Pisasale’s family company for the old restaurant site.

That price surpassed market valuations of $150,000 in 2002 and $250,000 in 2005 for the property given by council-hired independent valuers, according to documents obtained via Right to Information laws. Council had wanted to resume the property.

Mr Cheihk insisted another valuation had supported his price. “Has to be a valuation mate otherwise we could not of got a loan,” he said.

The valuer whom Mr Cheihk named told The Courier-Mail it could find no record of having valued that property. Mr Cheihk maintained someone had done a valuation.

The mayor backed his actions. “I have done nothing wrong,” he said.

Cr Pisasale initially also insisted he had “handed the job of selling it to a real estate agent and remained at arm’s length at all times from the sale”.

Yet that agent contradicted Cr Pisasale’s repeated assertions that he sold the property.

“I had the property ‘for sale’ but was unsuccessful in finding a buyer,” agent Garth Llewellyn said.

The mayor now concedes Mr Llewellyn did not do the deal, saying his lawyer and Mr Cheihk’s appeared to have sealed the deal. He maintained the deal remained at arms-length.

Cr Pisasale said he settled on Mr Cheihk’s bid because another higher offer was “not offering quick settlement”.

He also initially tried selling council the land for only $250,000 as he “felt they might need this land” later. He said he was unaware of council’s valuations.

Council said it rejected the 2004 offer due to spending priorities. It bought the site in 2008 for a car park for $495,000, within valuations then.

Cr Pisasale voted to enter a land contract then on “prices negotiated by” council’s chief executive. “(Cr Pisasale) had no material personal interest or conflict of interest” in the vote, having sold the land, his spokesman said.