The origins of more than $46,000 in donations to a Queensland mayor’s campaign have not been disclosed
The origins of more than $46,000 in donations from developers and builders to a Queensland mayor’s election campaign were never disclosed to the Electoral Commission of Queensland.
Moreton
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THE origins of more than $46,000 in donations from developers and builders to Moreton Bay Mayor Allan Sutherland’s 2012 election campaign have never been disclosed to the Electoral Commission of Queensland (ECQ).
Prior to the 2012 local government election, two fundraising events were organised by Moreton Futures Committee and Queensland Raceways at Lakeside Park, Kurwongbah.
At least one of the Lakeside fundraisers was initially discussed at a branch meeting of the Urban Development Institute of Australia (UDIA) Moreton Bay committee earlier that same year.
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Profits raised were to support “good governance in the Moreton Region and re-election of Mayor Allan Sutherland”, according to an invitation to one of the events.
The first of these events was around September, 2011 and the second was on March 16, 2012.
It is understood between 100-150 people, including developers and builders, attended each event paying a minimum of $250 each.
Yet just two donations were disclosed to the Electoral Commission of Queensland — one from each event under the name “Queensland Raceway”.
In total, $46,695 (payments of $22,195 and $24,500) was donated to third party fund Moreton Futures Trust from the two events.
Election laws in 2012 required any donation over $200 made directly to a candidate to be disclosed to the ECQ.
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Though a legal loophole meant donations up to $1000 could be made to candidates through a third party such as a trust, without being disclosed.
Queensland Raceways (QRO) owner John Tetley confirmed with Pine Rivers Press that the money was not his.
The revelation comes at a time when the Queensland local government sector is undergoing major reform as a result of the Crime and Corruption Commission’s Operation Belcarra investigation in 2017.
Belcarra examined the conduct of candidates during the Moreton Bay, Gold Coast, Ipswich and Logan council elections.
It found “widespread noncompliance with legislative obligations relating to local government elections and political donations. This noncompliance is largely caused by a deficient legislative and regulatory framework.”
Pine Rivers Press is not suggesting Cr Sutherland or the donors failed to make sufficient disclosure of the donations as the law required at the time.
Donations by property developers and their close associates were also permitted at that time, though were banned last year as a result of the Belcarra investigation.
Cr Sutherland mentioned the Lakeside fundraisers when he appeared as a witness at a Belcarra hearing on April 21, 2017.
“When I went to Lakeside and I drove in to that one in 2012, I was stunned by the number of cars that were there,” he told the hearing.
“It’s very hard to keep an eye on how many people are in that room and who attended and who paid what.”
He added: “It’s hard to have a conflict (of interest) when you don’t know who the donor is.”
The identities of the people and business representatives attending the two fundraisers, and whose money was ultimately donated to the trust, were not required to be disclosed to the Electoral Commission of Queensland (ECQ) if the donations were under $1000.
An ECQ spokeswoman said fundraising contributions are classed as donations under legislation.
“In 2012, Queensland law required local government candidates to disclose the details of all donors who contributed $200 or more, including fundraising contributions,” she said.
“Donors also had to disclose the transaction, and advise the ECQ if another person/entity contributed more than $1000 to that donation.”
However, if a donation under $1000 was made to a candidate through a third party such as Moreton Futures Trust, then it did not have to be disclosed.
“Donors can still disclose donations that were made in 2012,” the ECQ spokeswoman said.
Jim McKnoulty, then chair of RPS Australia, sent an email from his work account on February 18, 2012, to a number of builders, developers and planning consultants inviting them to attend the 2012 fundraiser.
“Gents, Queensland Raceways and Moreton Futures Committee are organising another Driver Training day and luncheon at Lakeside International Raceway on the 16th March 2012,” the email stated.
“All profits from the event will be donated to the Moreton Futures Committee, which is a not for profit organisation supporting good governance in the Moreton Region and re-election of Mayor Allan Sutherland.
“We have a limited number of sponsorship opportunities which would provide your business with excellent exposure in the Moreton Region.”
The email offered a number of packages of between $1000 and $2500 for four seats at a table along with hot-laps around the Lakeside track with a professional driver, depending on the package purchased.
The minimum cost per person attending the fundraiser ($250) was above the $200 disclosure limit had the money gone directly to a candidate.
However, because the money went to Moreton Futures Trust and not directly to the candidate, only donations above $1000 had to be disclosed.
Among those invited to the 2012 Lakeside fundraiser were representatives from Stockland, QM Properties, Village Building Co, embattled builder Laing O’Rourke and Investa Property Group.
On the Queensland Raceways disclosure return to the ECQ made by Mr Tetley, just the second payment of $24,500 from the 2012 fundraiser was listed.
Mr Tetley told Pine Rivers Press that back in 2012, Lakeside hosted many events at the track for a range of organisations.
“I did not know how many events were actually delivered for Moreton Futures — it was just another event to us,” he said.
“As QRO and I would have seen it, Moreton Futures was running a business event to make a profit.
“Did we donate to Moreton Futures (Trust)? I don’t think so because it was a business deal.
“QRO did not donate the facility or the catering for the Moreton Futures events. I can say this because they were billed for what we delivered and the cost of QRO providing the day was to be deducted from the total receipts.
“Did QRO donate anything? Not in cash but it is likely we did supply a guest speaker and use of a race car for rides.
“The payment to Moreton Futures would have come from our accounts department by cheque or direct deposit. I was not part of that process but we were still issuing cheques in those days so I may have signed one for them.”
There was $132,695 donated to Moreton Futures Trust in total for the 2012 election and mayor Sutherland disclosed receiving $110,500 from that amount.
The Moreton Futures Trust ECQ disclosure return, however, only lists one outgoing payment — $60,000 to mayor Sutherland.
Cr Mike Charlton also disclosed receiving a $5000 loan from the trust which he said he repaid in full.
Cr Charlton, who appeared as a witness at the Belcarra hearings on April 19, 2017, told the hearing that he was aware of the two fundraising events at Lakeside.
The names of two trustees were added to the Moreton Futures Trust disclosure return on January 20, 2016 — Kirby James Leeke and John Alexander Ryan.
In an email to a reporter dated January 21, 2016, Mr Leeke confirmed he and Mr Ryan did not give all the funds in the trust to Cr Sutherland.
The Lakeside racetrack is owned by Moreton Bay Regional Council and was leased to Queensland Raceways in November, 2007.
Developer David Trask, who has contributed directly to Cr Sutherland’s 2012 and 2016 campaigns to the tune of $130,000, alluded to one of the Lakeside fundraisers in his witness statement to the Belcarra hearings.
He said the fundraiser, which Cr Sutherland attended, was discussed during a meeting of the UDIA Moreton Bay committee, of which he was a member at the time.
“I was instrumental in the setting up of the day and, you know, organising the basics of a fundraising event,” he said in his witness statement about his role in the Lakeside fundraiser.
“I’m a member of the UDIA which is a peak industry body. And it was something that as a committee at that particular time was discussed at a committee meeting … to conduct a fundraiser.
“And I’m not entirely sure how it spawned into a day at Lakeside but I thought it was a good idea because I am a car enthusiast.”
Mr Trask’s company Trask Development Corporation was tasked with receiving emails from people “interested in sponsorship and supporting” the Lakeside fundraiser and then getting that person in touch with an event organiser.
Then UDIA Moreton Bay committee president Paul Engeman, who also worked for developer Peet, was also invited to the 2012 Lakeside event, as was town planner Tim Connolly, who was the “settlor” of Moreton Futures Trust.
UDIA Queensland CEO Kirsty Chessher-Brown told Pine Rivers Press she was only aware of three UDIA Moreton branch committee events held between May 2011 and August 2012.
The fundraiser at Lakeside was not among them.
Ms Chessher-Brown said the UDIA was in the process of inviting councils across Queensland to establish a Memorandum of Understanding (MOU) with their local UDIA branches.
“The purpose is to commit both parties to the highest standards of integrity, accountability and transparency, which includes making meeting minutes publicly available,” she said.
The State Government on March 5 announced it would consult with mayors, councillors and stakeholders on a range of Local Government reform proposals, resulting from the Belcarra report.
“The Belcarra report emphasised the need for transparency and accountability as the cornerstone of local government,” Local Government Minister Stirling Hinchliffe said.
In the Local Government Reforms information paper released earlier this month, proposed changes include both candidates and third parties disclosing in real time all donations over $500.
Third parties are also required to disclose the original source of donations.
Though electoral donations under $2000 will not count towards a councillor having a conflict of interest.
The ECQ spokeswoman said the ECQ in 2014 introduced new powers to investigate local government electoral matters.
The ECQ can now conduct compliance reviews and investigate matters (including bank accounts), and work with the Crime and Corruption Commission and other agencies to ensure electoral laws are upheld.
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