ICAC finds three former Hurstville, Georges River councillors conduct corrupt

Three former Hurstville and Georges River councillors have been found by ICAC to have engaged in “seriously corrupt conduct”, after they received monetary kickbacks from two developers.

The NSW Independent Commission Against Corruption (ICAC) has found that three former Hurstville City and/or Georges River councillors Vincenzo Badalati (left), Constantine Hindi (left) and Philip Sansom (middle) engaged in serious corrupt conduct by receiving or giving benefits in relation to two large development proposals.

Three former Hurstville and Georges River councillors have been found by the NSW corruption watchdog to have engaged in serious corrupt conduct.

In a report released on Wednesday, the NSW Independent Commission Against Corruption investigation found two of the councillors received $170,000 and accepted payment for Chinese trips in exchange for their support of two large development proposals in Sydney’s south.

The men also supported the projects without declaring any conflicts of interest.

Former Hurstville City, and/or Georges River councillors Vincenzo Badalati, Constantine Hindi and Philip Sansom were found to have engaged in serious corrupt conduct between 2014 and 2021 following a 25-day public inquiry in June, July and August last year.

The conduct included Mr Badalati and Mr Hindi accepting about $170,000 each from developer Ching Wah (Philip) Uy as an inducement to use, or a reward for having used, their positions as councillors to favour the interests of Mr Uy and the proponents of two proposed Hurstville developments called the Treacy Street and Landmark Square developments.

The proposed Landmark Square development.

These payments took place in 2018 when Mr Badalati and Mr Hindi each accepted $100,000 in relation to the Landmark Square Development and in 2015 when they each accepted $70,000 in relation to the Treacy Street development.

The three councillors also engaged in serious corrupt conduct by attending council and voting in favour of applications relating to the development proposals, having failed to declare non-pecuniary interests that had arisen from their relationships with Mr Uy and another developer, Wensheng Lui.

The Treacy Street development.

Mr Lui, through his company GR Capital Group, was the proponent of a development proposal to build an 11-storey block of apartments located at 1–5 Treacy St, Hurstville.

Wensheng Lui was also the sole director and secretary of One Capital, the proponent of the Landmark Square planning proposal which was situated at 53–75 Forest Rd, 108–126 Durham St and 9 Roberts Lane, Hurstville, spanning more than 14,000sq m, known as the Landmark Square development.

Mr Uy was involved in both developments through his building company, Gencorp, and through his own financial investment.

“Mr Badalati and Mr Hindi engaged in serious corrupt conduct by travelling to Tangshan, China, in April 2016 when they knew that their status as public officials with Hurstville City Council would be misused to endorse and promote the Treacy Street and Landmark Square developments in the interests of One Capital, Wensheng Lui, Yuqing Liu and Mr Uy,” ICAC found.

“Mr Hindi and Mr Badalati accepted benefits in association with this trip including payment by Mr Uy and/or Yuqing Liu (or his company, Xinfeng) for flights and accommodation and travel in luxury cars; including for Mr Hindi’s wife.”

The watchdog found Mr Uy engaged in serious corrupt conduct by providing the above benefits to the councillors as an inducement or reward for them to use their positions as Hurstville councillors to favour Mr Uy and the proponents of both developments.

ICAC released the finding on Wednesday.

Mr Sansom engaged in “serious corrupt conduct by accepting payment for his and his partner’s return flights for a trip to China in March and April 2014” when he knew the payment was intended to influence him in carrying out his official functions, including in relation to the two projects.

Mr Uy was also found to have engaged in serious corrupt conduct for making the payment under these circumstances.

Councillors Badalati, Hindi and Sansom attended meetings and voted in favour of the Treacy Street planning proposal in April 2016.

Councillors Badalati and Hindi continued to make decisions in relation to the development from 2017 to 2019, by which stage they had been elected to the amalgamated Georges River Council.

At no stage did the councillors disclose any of their pecuniary or non-pecuniary interests in these matters, the investigation found.

Mr Hindi also failed to disclose his pecuniary interest in the Landmark Square planning proposal through his wife Mireille Hindi’s interest in that development; in which a Buyer’s Agency Agreement between One Capital and Mrs Hindi’s real estate agency under which Mrs Hindi stood to gain $500,000.

ICAC has made 11 corruption prevention recommendations to the Department of Planning and Environment including that the DPE amends the Model Code of Conduct to prohibit council officials, including councillors, from accepting gifts and benefits, including hospitality and contributions to travel, from property developers.

The Commission also recommended that the department seek amendments to the Local Government Act 1993 to require a council’s governing body to provide reasons for approving or rejecting development applications, planning proposals and planning agreements where decisions depart from the recommendations of staff.

The Commission has sought advice of the Director of Public Prosecutions on whether any prosecution should be commenced.

“The Commission is of the opinion that consideration should be given to obtaining the advice of the DPP about the prosecution of Mr Badalati, Mr Hindi, Mr Uy, Mrs Hindi and Mr Sampson for various offences,” the findings said.

Commissioner Stephen Rushton SC presided at the public inquiry at which 19 witnesses gave evidence.