Huang-linked councillor Simon Zhou’s future in the balance

Extraordinary meeting called following exposure of a deputy mayor’s financial links to the property developer.

Ryde City council’s deputy mayor Simon Zhou. Picture: Adam Yip

The future of a deputy mayor from Sydney’s north west with links to wealthy Chinese property developer Huang Xiangmo hangs in the balance with an extraordinary general meeting called to consider his position.

Ryde City councillors will vote on an urgent resolution on Tuesday that could force Simon Zhou to step aside pending an investigation, and possibly force mayor Jerome Laxale to do the same, following revelations the deputy mayor failed to disclose a $4 million stake in a Huang-related company.

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Mr Zhou has said he transferred his shareholding to his mother, who then passed it to one of his business associates, shortly before he was elected as an independent to the council in September 2017.

Simon Zhou with Huang Xiangmo. Picture: Supplied

But other councillors say they are disturbed at Mr Zhou’s failure to mention his stake in a Huang-owned company in the lead-up to their decision to approve redevelopment of a shopping complex at Eastwood, in the heart of the council area, that is owned by the Chinese billionaire’s company Yuhu Group.

Real estate agency Knight Frank is selling the Eastwood complex on behalf of Yuhu Group with council approval for 409 apartments and 15,000sq m retail and commercial space. Yuhu Group hopes to score profit exceeding $100 million.

With numbers finely balanced, any move against Mr Zhou could cost Labor control of Ryde Council under Mr Laxale’s leadership.

Mr Laxale was re-elected mayor in September 2017 — but only with the help of Mr Zhou, who had recently quit the NSW ALP to run as a Ryde independent.

Mr Zhou’s decision to back Mr Laxale gave Labor a one-seat majority out of 12 councillor positions. Mr Laxale then made Mr Zhou deputy mayor.

Sources close to Mr Zhou told The Australian he had returned from an extended trip overseas and would resist pressure on Tuesday to force him to step aside pending the outcome of council members referring his financial disclosure issue to the NSW Independent Commission Against Corruption for investigation.

The resolution to be put on Tuesday by Liberal councillors Trenton Brown and Jordan Lane, which also includes requests that Ryde Council seek to have approval of the Eastwood shopping redevelopment overturned and that Yuhu Group assets be frozen during any inquiry, could depend on the key vote of independent councillor Ray Maggio.

Mr Maggio was reported in The Australian Financial Review last month saying he would have voted against the Eastwood redevelopment if Mr Zhou had disclosed his financial links with Mr Huang.

But there was speculation Mr Maggio might not attend Tuesday’s special council meeting, putting the result in the hands of Greens councillor Christopher Gordon or a possible split in Labor’s ranks.

Mr Zhou has been overseas for the past three weeks since his $4m stake in the $82m Pymble Corporate Centre — also on Sydney’s northside but outside the Ryde council area — was reported.

Mr Laxale, expected to vigorously resist moves to force him to step aside as well, said a week ago that he had “nothing to hide” and welcomed any investigation.

Mr Huang, who now lives in Hong Kong after his Australian residency was rescinded in December by the federal government on ASIO advice, tweeted last week that he wanted an investigation into property dealings and indicated he had done no wrong.