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Council-ordered investigation clears mayor of corruption, Obeid links
By Ben Cubby and Jordan Baker
An investigation ordered by Canterbury-Bankstown council has cleared its own embattled mayor of wrongdoing after claims were raised in parliament of questionable development dealings involving corrupt ex-minister Eddie Obeid.
The report, released on Tuesday after a three-month investigation, found mayor Khal Asfour had no relevant relationship with Obeid or his son Paul, and found no evidence Asfour had failed to declare or manage any relevant conflicts of interest.
Canterbury-Bankstown Mayor Khal Asfour.Credit: James Brickwood
The claims made in parliament centre on a block of land at the heart of a multibillion-dollar redevelopment of Bankstown’s CBD.
The site, owned by a company formerly run by Obeid and members of his extended family, is mainly occupied by the dilapidated Bellevue function centre.
But under a new master plan developed by the council during Asfour’s tenure as mayor, the site is slated for an especially large apartment and office tower that could potentially net millions in profit for the site’s current owner, Obeid associate Wally Wehbe.
The council commissioned consultants SINC Solutions to investigate claims made in parliament by Bankstown MP Tania Mihailuk that Asfour had “engaged in unprincipled actions in furthering the interests of developers and identities, in particular Eddie Obeid”.
Wally Wehbe outside his home in southern Sydney.Credit: Sam Mooy
“There is no evidence that the mayor is a close associate and or friend of Mr Eddie Obeid,” the report found.
The assertion that the proposal in the masterplan to allow for redevelopment of the Bellevue site and an adjacent council-owned car park would benefit Obeid was not substantiated, the report found.
The report said, “there is no evidence that Mr Eddie Obeid has any ownership associated or interest with the Bellevue Venue site.”
The site was acquired in 1987 by a company at which Obeid and Wehbe were joint directors. Obeid’s half of the site was sold to his son Paul in 1993 for $1, then to the family’s financial controller Hassam Achie in 2017, again for $1. Wehbe became sole owner in 2018 by paying Achie $1.
Prominent barrister Arthur Moses SC was retained by the council to conduct an independent review of the findings, and both the report and his review were released on Tuesday.
Mihailuk and Liberal MP Wendy Lindsay, who has also raised concerns about Canterbury-Bankstown development practices, did not take part in the investigation and were not interviewed.
Asfour does not dispute that Obeid attended his wedding, which took place at the Bellevue function centre in 2010, but told investigators he was not responsible for the guest list.
The Bellevue site has been singled out for a particularly tall tower.Credit: Wolter Peeters
“Wedding arrangements and booking the venue were done by my parents and in-laws-to-be direct only with the venue operator/manager,” he is quoted as saying in the report. “I understand there was never any contact with any owners of the land.”
He said he received from Obeid a “wedding gift was similar to most guests at the wedding. From memory, it was approximately $200-$300.”
Asfour told investigators he had not declared any conflict of interest in relation to Mr Eddie Obeid or Mr Paul Obeid as he did not have any personal or business relationships with either of them.
Asfour has previously told the Herald he has a professional relationship with Wally Wehbe and is on friendly terms with his brother Rehme. His relationship to the Wehbe family does not feature in the SINC Solutions report.
Khal Asfour, Tania Mihailuk and Eddie Obeid.Credit: SMH
“In relation to the allegations made by Ms Mihailuk MP and Ms Lindsay MP, there is no evidence of any corrupt or unlawful act,” Canterbury-Bankstown council said in a statement on Tuesday.
“Council had in place at all relevant times appropriate corporate governance with respect to corruption prevention measures.”
Asfour has been nominated on the upper house ticket for Labor ahead of the March state election.
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