Developer paid $1.2m into the accounts of local councillors: corruption probe

Companies linked to Ferrari-driving property developer John Woodman paid two councillors at Casey council more than $1.2 million in what a lawyer for the Victorian anti-corruption commission said was an attempt to win favourable planning decisions worth up to $100 million in one case.

The payments were revealed as public hearings got under way as part of the Independent Broad-based Anti-corruption Commission's Operation Sandon, the most significant probe into alleged planning-related corruption in Victoria in decades.

Developer John Woodman had relationships with a number of councillors.Credit: Gary Sissons

There were gasps in the hearing room when counsel assisting the hearing, Michael Tovey, QC, revealed the extent of the financial links between Mr Woodman and councillors, and the hundreds of thousand of dollars in political donations he had made to political candidates on both sides of state politics.

In his opening statement, Mr Tovey detailed how Mr Woodman and related companies used financial payments into councillors’ bank accounts, political donations and other gifts to “curry favour” with councillors in an attempt to win favourable planning decisions.

Mr Tovey said some payments were in cash and appeared to be "patently corrupt". In a bizarre twist to the Casey story, Mr Woodman told the hearing that one councillor, former mayor and Liberal activist Sam Aziz, had given him a suitcase filled with $600,000 in cash as a loan for investment in development. In return Mr Woodman made monthly cash payments of $15,000 to Cr Aziz.

Mr Woodman's donations were given particularly in electorates where he was active as a planner and developer, Mr Tovey said, as he outlined the focus of Operation Sandon, which was launched last year. He said Mr Woodman seemed to have an "unusual" level of influence at Casey.

Called to give evidence, Mr Woodman denied he used money to gain favour with councils and said his generous political donations were intended to encourage "good governance".

Key issues of interest were central to stories in The Sunday Age in October and November last year, including the proposed rezoning of land in Cranbourne West owned by construction giant Leighton, and council decisions favourable to Woodman-linked company Wolfdene, including at the Pavilion housing development and the construction of an intersection at Hall's Road in Cranbourne.

Mr Tovey said the attempted rezoning of the Cranbourne West precinct from industrial to residential would have increased its value by more than $100 million, generating a windfall for the landowners and Mr Woodman. First proposed in 2014 and supported by Casey council, the rezoning is now awaiting a final decision by planning minister, Richard Wynne.

Mr Tovey said Mr Woodman's company, Watsons Pty Ltd, had paid $900,000 into bank accounts linked to former Casey mayor and Liberal Party activist councillor Sam Aziz, who had repeatedly argued and voted for planning decisions favouring Watsons-linked projects.

Included were payments of $25,000 a month to Cr Aziz for supposed consultancy work on a grand scheme for a satellite city at Little River, west of Melbourne. Cr Aziz was to be paid $600,000 for the consultancy work. Under questioning, Mr Woodman confirmed that Cr Aziz had not delivered the work he been commissioned to do.

Sold his house and quit the country: Former Casey mayor Sam Aziz. Credit: James Taylor

Cr Aziz will not appear before the hearing. He left the country on extended leave weeks ago as Operation Sandon stepped up and homes and offices were raided. Mr Tovey told the hearing that shortly after IBAC raided his house, Cr Aziz sold his home and left Australia for Egypt. IBAC subsequently froze the proceeds of the sale.

On Sunday, Cr Aziz told The Age he was in Dubai and insisted he had done "nothing wrong". It's unclear when or if he plans to return to Melbourne. Mr Tovey also detailed the repeated failure by Cr Aziz to declare conflicts of interest at council meetings.

Former mayor and one-time aspiring Liberal MP Geoff Ablett also received payments into his bank account of $300,000, and tens of thousands of dollars from Watsons when he unsuccessfully contested the state election in 2014.

Mr Woodman and Cr Ablett also own racehorses together, with Mr Woodman confirming he paid Cr Ablett $5000 a month to look after the horseracing interests.  He stressed however that as part of their legal agreement Cr Ablett would declare a conflict of interest when Woodman-linked projects came before council.

Geoff Ablett in 2010.Credit: Luis Enrique Ascui

Watsons Pty Ltd has long prided itself on winning unlikely planning approvals, especially rezonings in farming and green-wedge areas. Donations and in-kind support to councillors and MPs is an important part of the Watsons strategy for planning success.

Mr Woodman's client list or business partners have included, or include, the Fox, Ansett and Baillieu-Myer clans, as well as Tony Madafferi, the man police have alleged to be Melbourne's mafia boss.

Among witnesses to appear through the three-week hearing will be former mayor and ex-Liberal MP for Mordialloc Lorraine Wreford, who has worked as a conduit between Mr Woodman and some councillors since 2015.

While the hearings will focus on Casey, IBAC’s public comments make it clear Operation Sandon is far wider in scope and will look at systemic problems in planning decisions statewide.

Casey, which takes in swelling suburbs such as Cranbourne, Berwick, Clyde and Hallam, is one of the fastest-growing municipalities in Australia.

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