Cash for access: Councillors ask corruption watchdog to investigate scheme

Six Port Phillip councillors have asked Victoria’s anti-corruption watchdog to investigate a “gold and platinum” scheme that sells access to a community group that donates money to two other sitting councillors.

The group – called Residents of Port Phillip (RoPP) – offers tiered memberships for up to $2000, which has sparked fears from other councillors that the fundraising compromised the “impartiality and transparency of council”.

Port Phillip councillors are split over a donations scheme.Credit: Penny Stephens

In one article published on the group’s website to encourage fundraising, potential donors are asked to “select your level of support, and we will assist you with advice on council issues, help you with community advocacy, and become part of the RoPP support team”.

The tiered supporter products also provide discounts on gift cards from stores including Rebel Sport, JB Hi-Fi and Amazon.

RoPP is an incorporated association that is registered with Consumer Affairs Victoria and has endorsed two Port Phillip councillors – Rhonda Clark and Christina Sirakoff. The group raises money and provides financial support to help the councillors run their election campaigns.

Port Phillip councillor Christina Sirakoff’s husband is the group’s president.

In public disclosures to the council, Sirakoff is listed as an RoPP committee member. Her husband, Campbell Spence, is listed as a committee member and the group’s president.

Integrity expert Geoffrey Watson, SC, a director of the Centre for Public Integrity, said the situation was unusual and a letter written to authorities by the six councillors had identified a genuine issue that needed examination.

“[Donors are] only getting access to RoPP but because one of the key members of RoPP is a councillor, it can’t be right,” Watson said.

Clark did not respond to questions from The Age and Sirakoff referred questions to her husband. Spence said his wife, Sirakoff, attended RoPP committee meetings but did not hold any roles such as treasurer or secretary.

Six of Port Phillip’s nine councillors have written to the Independent Broad-based Anti-corruption Commission, Local Government Minister Melissa Horne and Chief Municipal Inspector Michael Stefanovic asking them to investigate the scheme.

In their letter, obtained by The Age, the group – which includes a Liberal Party member and endorsed representatives from Labor and the Greens – wrote they feared the situation would “compromise the [council’s] decision-making process”.

“We are concerned that the offering of these products to the community by RoPP … could create a conflict of interest for the RoPP councillors, which should be disclosed to council as required by the Local Government Act,” wrote the six councillors, including the mayor and deputy mayor.

“We are further concerned that the failure of, or the non-requirement to have to disclose these donations by RoPP councillors, could compromise the impartiality and transparency expected of local government elected officials.”

Port Phillip councillor Rhonda Clark.

The RoPP group offers residents the opportunity to purchase one of four packages as part of its fundraising efforts.

The $500 gold product promises an invitation to “one executive committee meeting to present an issue” and to a subcommittee meeting, including one focused on “advocacy – achieving solutions to local issues”.

The platinum supporter product – priced at $2000 – provides access to any RoPP executive meeting to present on any topic.

RoPP insists the councillors the group endorses are independent and that the organisation is a grassroots community group rather than a political party.

The six councillors, however, wrote that while they make no allegation that any law has been breached, “this form of a paid access to community groups with such close direct association to current councillors, and their immediate family, is not in keeping with the transparency in decision-making requirements expected of councillors under the Local Government Act”.

Spence, the RoPP president, told The Age his group objected to any allegation the fundraising initiative was selling access to the councillors.

Integrity expert Geoffrey Watson, SC, says the fundraising group needs investigating.Credit: Alex Ellinghausen

He said no RoPP-endorsed candidates were members of the “executive committee” and residents had access to both Clark and Sirakoff for free at any time through community meetings and other opportunities.

“Cr Clark and Cr Sirakoff have always declared any potential conflicts of interest and will continue to do so,” he said.

Councillor Tim Baxter says he can’t see why councillors should seek public donations.Credit: Julian Meehan

“Residents of Port Phillip launched their fundraising program in May and since then, Cr Clark and Cr Sirakoff have not had any conflicts in relation to gold and platinum supporters and donors. If any conflicts were to arise subsequently, the two councillors will declare them and have done so.”

In the 2020 local government election, the RoPP group contributed $8251 in campaign donations to Sirakoff, $14,251 to Clark and $15,751 to another candidate who was not elected.

Under Victorian law, councillors are subject to disclosure requirements for any direct donation of $500 or more to an individual councillor under the Local Government Act.

However, the funding from RoPP supporters is made directly to the organisation.

“Residents of Port Phillip are not politically aligned and we believe that councils are better served by independent councillors who put residents first and are not beholden to political parties,” Spence said.

“We believe that the complaint to the Local Government Inspectorate is motivated by vexatious politics because independent councillors are a threat to party politics, confirmed by the very nature of this group complaint.”

Spence said the two councillors had “nothing to hide”.

The six councillors have called on IBAC and the municipal inspector to act by either investigating the fundraising scheme or consider outlawing similar schemes through legislative change.

One of the signatories, Councillor Andrew Bond, told The Age it was “imperative that the community trusts the actions and decisions of their elected officials”.

“Any potential conflicts of interest must be transparently disclosed and managed to ensure the public’s confidence in local government. This RoPP fundraising scheme sets a dangerous precedent,” Bond said.

Greens councillor Tim Baxter urged authorities to investigate.

“I am a staunch advocate for transparency and accountability in governance. I have never sought funds from our community for access to me to address their local issues, and I can’t see why any councillor should be doing something like that,” he said.

City of Port Phillip chief executive Chris Carroll said the six councillors had informed him of their letter to authorities.

He said council organisations did not have a role reviewing these issues and would not comment further.

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