Western Sydney missing $80m in parks and amenities due to former councils’ bungling

WESTERN Sydney has missed out on $80 million of parks and other amenities because two councils — including the former Auburn authority — bungled their levies.

Salim Mehajer was deputy mayor at Auburn council, which failed to charge developers appropriately, an audit has found. Picture: AAP

WESTERN Sydney has missed out on $80 million of parks and other amenities because two councils bungled their levies.

These levies, known as Section 94 contributions, are meant to offset the effects of new developments with civic improvements.

A damning audit by the newly merged Cumberland Council has found the former Holroyd Council is short $55 million in Section 94 contributions and Auburn is down $25 million.

Holroyd’s shortfall is a result of overspending on land acquisitions and “significant internal borrowing”, while Auburn’s shortfall is due to not charging ­developers enough.

Ronney Oueik, a property developer, was mayor at Auburn council. Picture: Jonathan Ng

The new council administrator has described this short-changing of citizens as “a disgrace”.

The Auburn shortfall was during the reign of former Deputy Mayor Salim Mehajer and Mayor Ronney Oueik. Both are property developers.

Comparable councils were charging developers $15,000 per dwelling built but Auburn Council was collecting $6000.

“Council estimates the potential foregone income for public ­infrastructure to be in the order of $25 million over the past seven years,” Cumberland Council ­interim general manager Malcolm Ryan told The Sunday Telegraph.

“This shortfall is the result of not revising the S94 Development Contributions Plan in the years following the introduction of the new local environment plan for development in 2010.”

Council documents show the former Holroyd council is short $55 million in Section 94 contributions.

It also found Section 94 money that should have been spent in Toongabbie, Wentworthville and South Wentworthville was instead funnelled into Merrylands.

IN OTHER NEWS: G20 LEADERS GET TO WORK

At Wednesday night’s council meeting, Cumberland Council administrator Viv May said the shortfall was “a disgrace”.

“In relation to the former Holroyd Council you have to ask yourself: ‘How did this happen? Why did they continue with such low section 94 contributions?” he said.

“I think it is easier to answer the Auburn question than it is to answer the Holroyd question.”

Labor’s Local Government spokesman Peter Primrose said the community was short-changed. “Many have suggested that Auburn Council kept their developer contributions so low because the council was stacked with property developers wanting to keep their costs down,” he said.

“The conflicts of interest are just too great.”

The report was compiled by GLN Planning for Cumberland Council, which is drafting a new section 94 contribution policy.

The council has been advised to vastly increase Section 94 levies to get back some lost cash.

Neither Mr Oueik or Mr ­Mehajer replied to our requests for comment.