ICAC: City of Canada Bay Mayor Angelo Tsirekas ‘accepted rewards’ for development approval
Directors of a liquidated Chinese development firm worked to convince investors that they had a Sydney mayor “on side” in a series of private meetings, ICAC has heard. Rolling coverage here.
iProsperity Group director, Xialou (Belinda) Li and Canada Bay Mayor Angelo Tsirekas in China. Picture: ICAC
Chinese property developers actively plotted to ‘lobby’ and reward a Sydney mayor for support in a multimillion-dollar development application for a series of high-rise residential towers, a NSW Corruption inquiry has heard.
The first two days of ICAC’s hearings into allegations of corrupt conduct by City of Canada Bay Mayor Angelo Tsirekas saw former iProsperity Group director, Xialou (Belinda) Li forced to give evidence before ICAC chief commissioner Peter Hall and Operation Tosola.
Canada Bay Mayor and councillor Angelo Tsirekas
The ICAC’s four-week hearing is probing allegations that long serving City of Canada Bay Mayor Angelo Tsirekas “partially exercised his official functions” to favour the interests of Billbergia Pty Ltd, Prolet Pty Ltd and contractor Joseph Chidiac, in relation to planning matters, and “deliberately failed to declare or properly manage any conflict of interest arising from his relationships”.
Joseph Chidiac and city of Canada Bay Mayor Angelo Tsirekas in China. Picture: ICAC
Ms Li, who resigned from iProsperity following its plunge into liquidation, is now the director of a new development company Forte Group.
ICAC will also investigate allegations that, since 2015, cr Tsirekas has partially exercised his official functions to favour the interests of Frank Bruzzano in relation to the development application for 168-172 Victoria Road, Drummoyne, and deliberately failed to declare or properly manage any conflict of interest arising from his relationship with Mr Bruzzano.
Meanwhile, it is also alleged that, since 2015, Councillor Tsirekas sought, and/or accepted benefits, as an inducement or reward for partially and dishonestly exercising his official functions to favour the interests of I-Prosperity Group and Mr Chidiac, in relation to planning matters affecting 1-9 Marquet Street and 4 Mary Street, Rhodes.
This month, ICAC also announced a further allegation that, between May 2015 and January 2018, former City of Canada Bay general manager, Gary Sawyer, partially and dishonestly exercised his official functions and failed to disclose the nature of his relationship with Mr Colacicco, in relation to the sale of Council property at 231 Victoria Road, Drummoyne, and the associated development application.
SEE OUR ROLLING COVERAGE FROM ICAC HERE
Updates
Town planner had 'no idea' mayor's friend was paid by developer
Former iProsperity town planner David Furlong has claimed he had "no idea" that Joseph Chidiac was contracted by iProsperity, despite providing him information regarding major development plans for Marquet St, Rhodes.
Mr Furlong has told ICAC he was not aware Mr Chidiac was employed by the development firm until he received access to documents by the corruption commission "six weeks ago".
When questioned about his lack of knowledge regarding Mr Chidiac's involvement in the company, Mr Furlong claimed he understood Mr Chidiac had a "general interest" in the development and he had not discussed providing development information to a member of the public with iProsperity directors.
Mr Furlong said the information provided to Mr Chidiac was all "public".
However, the town planning expert later told chief commissioner Peter Hall and assisting counsel Jamie Darams that he had attended a private party with iProsperity directors, Mr Chidiac and Mayor Angelo Tserikas in a "private room above Golden Century" in the Sydney CBD.
"I did ring Mr Chidiac on one occasion, late in 2018 in relation to getting Ms Li to finalise and sign a Voluntary Planning Proposal," he said.
When asked why he would contact someone who he was not aware was involved in the development for assistance, Mr Furlong said he "became aware" of a close relationship between Mr Chidiac and Ms Li following the Golden Century dinner.
Mr Furlong said he was not aware that Cr Tserikas had a social relationship with directors of iProsperity before the planning proposal was greenlit by council.
Mr Furlong said that he had been invited to travel with the mayor to China for a "sister city" event as Mr Fulong was a "former director of planning" for the council.
"Unfortunately, or fortunately, I said no (to attending)," he said.
Mr Furlong said Cr Tserikas had told him he was travelling to China with then council general manager Gary Sawyer and "some local well-known people".
Former Canada Bay Council staff member and planning expert David Furlong has told ICAC he received a "cold call" from iProsperity project architect, Steven Bowers, inviting him to work as a town planner on the multimillion-dollar Rhodes high-rise development.
ICAC earlier revealed text messages from iProsperity's Belinda Li that Mayor Angelo Tsirekas had recommended Mr Furlong for the role of town planner for the Rhodes project.
David Furlong. Picture: ICAC
The town planner, who has also known the mayor since 1997, said he had "a couple of beers" with the councillor during his time working with him, as well as family "interactions".
"We had been at the football a couple of times with other people," Mr Furlong said. "He is a West Tigers support, I am a Roosters supporter."
Mr Furlong said he had "assisted" Cr Tsirekas' partner, Heather Crichton, on the extension of her semi-detatched home and did not charge her for his town planning services.
"I didn't think that the application was being dealt with fairly. In fact, I thought Ms Crighton as the applicant was being treated unfairly because of her relationship with the mayor and it should never have come to this," he said.
"Through my practice, I've often assisted people , people have often been referred to me in circumstances like this – I don't think it's fair to charge them."
Up next in the witness box will be town planner and former Canada Bay Council staff member David Furlong. Neither Angelo Tsirekas or Joseph Chidiac are scheduled to appear in ICAC this week to give evidence in the inquiry.
Former Canada Bay Director of Planning and Environment Narelle Butler is scheduled to give evidence on Friday.
Developer hired contractor to 'get access to mayor': ICAC
Former iProsperity director Belinda Li has confirmed a proposal by ICAC assisting counsel, Jamie Darams that iProsperity used contractor Joseph Chidiac to gain access to City of Canada Bay Mayor Angelo Tsirekas.
Ms Li agreed with a statement by Mr Darams that there was evidence of a "large number of interactions with Mr Chidiac where you seek to use Mr Chidiac to arrange meetings with Mr Tsirekas".
"This is because you understood one of the things Mr Chidiac could provide to iProsperity, through his services which you were paying him a lot of money, was to get access to Mr Tsirekas," he said.
Ms Li said she agreed with Mr Darams' statement.
'We have to rush the proposal through before amalgamation': ICAC texts
Text messages with Ms Li's associates revealed she had a "breakfast meeting" with Cr Tsirekas, where the mayor urged the development firm to propose a tower of 35 storeys.
The texts, shown in ICAC, suggest Mr Tsirekas warned the developer that the owner of 1 Marquet St would seek additional funds for the cost of the land, if a tower taller than 35 storeys was proposed. "Council pushed us to purchase the lot because they didn't want us to isolate (1 Marquet St)," Ms Li told ICAC. Messages also show Ms Li said iProsperity had to rush the development through before council amalgamations. Chief commissioner Peter Hall asked if iProsperity had to rush the multimillion-dollar Rhodes proposal through for fear of a change in council staff or councillors, to which Ms Li agreed.
Additional texts from March 2016 show Ms Li requested the Canada Bay Mayor and Mr Chidiac speak with NSW Planning delegates about proposed building heights for the iProsperity Rhodes development.
Meanwhile, Ms Li confirmed to ICAC that she repeatedly called for Mr Chidiac to "involve" Cr Tserikas in planning for the Rhodes development and Voluntary Planning Agreements in May 2016.
Developers hired town planner 'because he worked for council'
Development firm iProsperity sought to hire a former town planner from City of Canada Bay Council, ICAC has heard.
Former director, Belinda Li, told ICAC she considered hiring town planner David Furlong, on the recommendation of contractor Joseph Chidiac, because he had "previously been employed by Canada Bay Council".
Ms Li denied having a conversation with Canada Bay Mayor Angelo Tsirekas regarding the employment of Mr Furlong, however, texts by Ms Li said Cr Tsirekas suggested David Furlong become town planner on the Marquest St, Rhodes development.
Chief commissioner Peter Hall asked why the suggestion of David Furlong was made.
"I can't remember if he gave a reason or not," Ms Li said. "I went with him because he was quite experienced."
She said it was "possible" the mayor gave the developer David Furlong's contact details.
'Make sure there is no iProsperity markings on the car': contractor
Text exchanges shown in ICAC from contractor Joseph Chidiac show he asked iProsperity director Belinda Li to ensure that there was no company "marking" for the devleoper on the car that was arranged to pick up him and Cr Angelo Tsirekas in March 2018.
Text messages also show that Ms Li told the contractor she would organise yet another day trip for Mr Chidiac and Cr Tsirekas in March 2018.
When asked if she organised the trip, Ms Li told assisting counsel Jamie Darams "I can't remember".
Text messages show former iProsperity director, Belinda Li, told contractor Joseph Chidiac that a driver, nightclub and the "biggest room" had been organised for he and Cr Tsirekas during their November 2016 trip to China.
Assisting counsel Jamie Darams questioned Ms Li as to whether she arranged trips or travel for the mayor and his associate during the Shanghai trip.
Texts show she arranged a day trip for 11 people.
"Joseph said they had one or two days where they wanted to go travel and visit surrounding areas, so I helped him book a tour guide, english speaker," she told ICAC.
Further text messages between iProsperity's Belina Li and Joseph Chidiac allegedly show Ms Li trying to organise for Mr Chidiac and Cr Tsirekas to meet with Chinese property developer Michael Gu at the Linx Club in Shanghai. To which Mr Chidiac refused as they "had to stay with the group".
Developer booked Mayor's hotel in China, texts show
Text messages between contractor Joseph Chidiac and Belinda Li, provided to Ms Li during day three of proceedings, allegedly show Mr Chidiac and Cr Angelo Tsirekas planning to meet with the property developer in Shanghai during a trip in November, 2017.
"What we have is Mr Chidiac coming to you, informing you that he is travelling to Shanghai," assisting counsel Jamie Darams said. "He then asks you how he can book a hotel for he and Mr Tsirekas.
"Then you ask Mr Xiao to make the relevant bookings."
WeChat conversations confirm Ms Li had iProsperity representatives organised the accommodation for Mr Chidiac and Cr Angelo Tsirekas in Shangai at the Langham Hotel. Ms Li forwarded Langham Hotel confirmation documents to Mr Chidiac on on October 26, 2017.
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