City of Melbourne CEO Justin Hanney crowd funds $35k for Sydney to Hobart Yacht Race

The City of Melbourne chief executive has vowed to return $35k raised for a yacht race after he failed to disclose the anonymous donations.

Melbourne City council CEO Justin Hanney has received more than $35,000 in largely anonymous donations to help participate in a yacht race

City of Melbourne chief executive Justin Hanney will return more than $35,000 he raised for a yacht race after admitting he should have disclosed the donations.

The Herald Sun this week revealed Mr Hanney, who is now paid $534,000 a year, had crowdfunded money to participate in a Sydney to Hobart yacht race.

Questions emerged over whether the money, which included large sums of anonymous donations, should be disclosed given his senior role as a council executive.

The funds were raised through the Australian Sports Foundation.

In a statement on Friday, Mr Hanney said he should have declared the funds and would give them back to the foundation.

“For complete transparency, the funds raised for the Sydney to Hobart race should have been declared on my personal interests return, and I intend to update the information as soon as I return from leave,” he said.

Mr Hanney shared posts of a recent sailing trip in Europe. Picture: Instagram

“I did not declare the Australian Sports Foundation donation as I believed that my interest in sailing and the race team were unrelated to my role as City of Melbourne CEO.

“Throughout my 30-year career, in the numerous executive roles I have held, I have always declared gifts or donations received relating to these positions.

“I will return the funds raised to the Australian Sport Foundation to remove any doubt about the seriousness with which I treat issues of probity and accountability.”

It came after the Local Government Minister Melissa Horne wrote to the council seeking clarification on the issue.

“We have sought assurances from the City of Melbourne that this matter has not created a risk to good governance including through any breaches of the Local Government Act,” a government spokesman said.

Acting Lord Mayor Nicholas Reece welcomed Mr Hanney’s decision.

“When the CEO returns from leave we will clarify any remaining issues relating to registration of gifts and personal interest disclosures,” he said.

“We will also examine if there is a need to improve any existing Council policies.”

It comes after the largely anonymous donations to Mr Hanney prompted concerns about disclosure loopholes.

The Australian Sports Foundation allows for tax-deductible donations to help people participate in sport and is regularly used to support disabled, disadvantaged and professional athletes in achieving their dreams.

Contributions to Mr Hanney’s campaign include anonymous donations of $9090 and $4545, which are listed but provide no detail on their origin.

By comparison, the Victorian Electoral Commission puts a $4320 cap on political donations, and anything above $1080 must be disclosed publicly with the donor’s names.

The Herald Sun is not accusing Mr Hanney or the foundation of impropriety, but the funding scheme has raised questions about how disclosure rules should apply to crowd-funding.

The foundation allows for tax-deductible donations to help people participate in sport.

City of Melbourne councillors are required to decline gifts above $500 where the name and address of the donor are unknown.

The council’s employee code of conduct also states staff should decline gifts where possible and receive authorisation for anything above $500.

“Accepting gifts from another organisation, contractor or supplier can give the impression that this could influence your decisions or actions,” the document reads.

“Even though this might not be your intention, or the intention of the donor, impressions and perceptions are important.

“In most cases, it’s best to politely decline any offer of gifts or hospitality.”

The Centre for Public Integrity’s executive director, Han Aulby said transparency was key when it comes to money in politics.

“Anonymous online donations need to be part of the proper disclosure processes,” they said

“Any money raised needs to be registered in the local government register

“Crowd-funding, particularly anonymously, is a new area of fundraising that particularly around elections the electoral commission would have trouble enforcing the rules.

“The important thing about strong integrity commissions is that they have investigative powers to chase that flow (of money), that is why IBAC needs stronger teeth.”

Last week, Mr Hanney received a significant payrise after the council signed off on a four-year deal.

His annual package is now $534,000, which is $70,000 higher than Premier Daniel Andrews and close to Prime Minister Anthony Albanese at $564,000.

The City of Melbourne did not comment in time for publication.