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Premier Andrews 'friendly' to developers at heart of anti-corruption hearing

By Ben Schneiders and Royce Millar

The allegedly corrupt developer at the centre of the Casey land scandal was charged $8500 for a fundraiser with Daniel Andrews ahead of the 2018 state election — a fundraiser which the Premier has not previously disclosed.

And Megan Schutz, the offsider of embattled property developer John Woodman, told an anti-corruption inquiry that some politicians, including Mr Andrews, Victorian Treasurer Tim Pallas and Deputy Premier James Merlino, were "more friendly than others".

Victorian Premier Daniel Andrews

Victorian Premier Daniel AndrewsCredit: AAP

“There were particular politicians that were more friendly than others, yes,” Ms Schutz told the Independent Broad-based Anti-corruption Commission inquiry. “Judith Graley, Jude Perera, Tim Pallas, the Premier, Merlino, Pauline Richards."

Ms Schutz said being able to engage with "friendly" politicians was important in gaining access: "I could approach them at these forums and they would be willing to have a discussion with me."

She would speak to politicians about projects and would then be referred to a ministerial adviser, whom she would approach at a later date.

"So it was getting access to the ministerial office in contrast to access via the department."

In contrast, developers saw Planning Minister Richard Wynne in a far less favourable light. In a phone tap played to the inquiry, Ms Schutz and Mr Woodman referred to Mr Wynne as “DH”, code for “dickhead”, and discussed him potentially moving from planning to become parliamentary Speaker.

Lawyer and planner Megan Schutz.

Lawyer and planner Megan Schutz.

Ms Schutz told the inquiry Mr Wynne had been regarded as unfriendly to the development industry and favouring community groups and the public interests. She said she felt “ashamed” about her language.

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The IBAC hearing on Friday was shown an invoice to developer John Woodman for $8500 for a dinner function with Premier Andrews at the Hellenic Museum in June 2018. Mr Andrews has not previously spoken about that dinner, though has acknowledged others, including two small gatherings at the upmarket Flower Drum restaurant.

Mr Andrews denied on Friday his ministers had been too “friendly” with Mr Woodman and said donations from the developer had been properly declared.

Invoice from Labor Party to property developer John Woodman for a fundraiser with Daniel Andrews.

Invoice from Labor Party to property developer John Woodman for a fundraiser with Daniel Andrews. Credit: IBAC

“It’s not a fundraiser that was anything other than appropriately declared,” Mr Andrews said. “He [Mr Woodman] has attended many events, he’s been clear about that and I’ve been clear about that. Not every event that he attends, though, would I necessarily meet with him or see him."

Mr Andrews said he did not discuss planning applications with developers at fundraisers.

In a separate intercepted conversation with Ms Schutz that was played to the IBAC hearing, Mr Woodman said he suspected Labor-linked figures were behind news stories that revealed the conduct of Casey Council. He said he was considering calling his Labor-linked lobbyist, Phil Staindl, and saying: "Mate, if I was the Labor Party, I’d be very careful about playing this game.

"I’ve got enough dirt on them to sink them, if you know what I mean.”

Developer John Woodman leaving the anti-corruption hearings last week.

Developer John Woodman leaving the anti-corruption hearings last week.Credit: Justin McManus

IBAC's three weeks of public hearings have heard detailed evidence of widespread alleged corrupt conduct in Melbourne’s south-east that allegedly involves direct corrupt payments to councillors and big donations to state politicians, including the Labor Party.

IBAC Commissioner Robert Redlich said on Friday the investigation would continue into next year and went beyond Casey Council.

It would look at current donation laws and whether the role of lobbyists and planning consultants had resulted in “undue influence” over planning and property decision-making in Victoria.

Mr Woodman, a prominent Mornington-based developer and planner, is the key figure of interest to the inquiry. Central to IBAC’s Operation Sandon is Mr Woodman’s bid to rezone Leighton’s industrial land in Cranbourne West to residential. That rezoning bid was potentially worth more than $100 million to Leighton, now known as CIMIC, and millions to Mr Woodman.

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The rezoning was at first rejected then supported by Casey Council in 2014-2015 as Mr Woodman showered councillors with campaign donations, other gifts and, in at least two cases, more than $1 million in alleged bribes.

Ms Schutz on Friday confirmed key departments were opposed to the rezoning. “The state government departments were strongly against the amendment,” she said. "It was clear the bureaucrats were against it."

The rezoning also required the approval of Planning Minister Wynne who deferred a decision after The Age revealed concerns about Mr Woodman’s activities in October 2018.

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At the time, Mr Woodman was also pouring money into Labor’s election campaign. Evidence to IBAC has revealed he gave nearly $160,000 to Labor for the 2018 campaign.

The inquiry has raised serious questions about the possibility of political interference in planning and the influence of political money under the Andrews government.

The IBAC inquiry has heard of elaborate schemes to influence and buy off key figures at Casey Council and extended even to secretly paying tens of thousands of dollars to the head of a local residents' group that backed the Cranbourne West rezoning.

Mr Woodman made $1.2 million in undisclosed cash payments to Casey councillors Sam Aziz and Geoff Ablett.  Former Liberal MP and lobbyist Lorraine Wreford personally delivered tens of thousands of dollars of cash in envelopes to Cr Aziz, the former mayor, on behalf of Mr Woodman.

Mr Woodman funnelled money to the councillors through a range of means, including using a fake name to pay off Cr Ablett’s credit card and also through buying 75 per cent of his rural property.

He paid Cr Aziz $25,000 a month as a “consultant” on a “smart cities” project and separately directed money to him through a horse-racing business. Cr Aziz gave Mr Woodman $600,000 cash in a suitcase in 2017 and over the next year, Cr Aziz received back $822,000.

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IBAC has heard other taped conversations including between Mr Woodman and Tom Kenessey, an executive with Leighton, in which Mr Woodman said his “connection” with Treasurer Pallas was the only way the rezoning would succeed.

Mr Woodman was also recorded telling Mr Kenessey that he feared jail over their Cranbourne West rezoning bid: “I don’t know how you and I ... are not going to finish up in jail or somewhere, uh, in a very un-nice place.”

The IBAC public hearings will resume in late February next year.

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Original URL: https://www.theage.com.au/national/victoria/premier-andrews-friendly-to-developers-at-heart-of-anti-corruption-hearing-20191206-p53hgv.html