ATET nightclub owner Jake Hughes refers City of Melbourne to state’s anti-corruption watchdog

The bitter dispute between ATET floating nightclub boss Jake Hughes and the City of Melbourne rages on, with the council’s top brass now accused of potential collusion and misconduct.

The owner of floating Docklands nightclub ATET has referred Lord Mayor Nick Reece to the state’s anti-corruption watchdog over the controversial move to close down the venue due to excessive noise levels.

The Herald Sun can reveal owner Jake Hughes named Cr Reece and City of Melbourne chief executive Alison Leighton in the IBAC complaint, citing “serious allegations of misconduct in public office” and concerns over “misuse of work information or material, and potential collusion” with internal and external parties.

“Council demonstrated a blatant abuse of power, disadvantaging our business to the point of deliberate collapse and exhibiting consistent unethical conduct in decision-making,” Mr Hughes said in the referral.

ATET owner Jake Hughes has lodged an IBAC complaint. Picture: Jake Nowakowski

ATET nightclub Docklands was shut down by Melbourne City Council in June 2023. Picture: supplied

“Council’s actions were unjust, unreasonable, and dismissive of all attempts to resolve the issue fairly — actions we have documented proof of”.

ATET – previously the target of an alleged arson attack – was shut down by the council in June 2023, after the council claimed noise levels coming from the floating bar were unreasonable, despite Town Hall previously supporting the business, even spruiking it as a location for the city’s 2022 New Year’s Eve celebrations.

Multiple noise complaints had also been lodged from residents in nearby apartments.

The referral states that the “decision appears to be driven by the highest levels of Council” including Mr Reece, who was deputy mayor at the time, and Ms Leighton.

Current Lord Mayor Nick Reece was deputy mayor at the time of the closure. Picture: Jason Edwards

City of Melbourne Chief Executive Officer Alison Leighton has been named in the IBAC referral. Picture: Supplied

The closure is also the subject of a Supreme Court legal action between Mr Hughes and the council, with court-ordered mediation expected to begin in coming weeks.

Mr Hughes, in his referral, said the council dismissed his genuine attempts to resolve the noise issues and did not act in good faith.

“We consistently followed Council’s instructions, took every measure to ensure compliance with the EPA noise limits, and proposed multiple long-term solutions to fully resolve all noise issues, going well beyond compliance,” he said.

Business owner Jake Hughes’ referral states that Melbourne City Council engaged in “misconduct”. Picture: David Caird

“We were denied a fair hearing, and our evidence was dismissed without consideration. We have substantial documentation proving that Council’s actions constitute an extreme overreach and a blatant abuse of power.

“Their conduct is unjustifiable and devoid of any rational basis, and suggests an ulterior motive behind their determination to shut ATET down.”

A City of Melbourne spokesman told the Herald Sun: “We have not received any correspondence from IBAC regarding ATET.”

A referral to IBAC does not imply guilt or that the corruption watchdog is investigating the matter but that it can take action if it decides to.

An IBAC spokesman said the watchdog does not comment on specific matters.