‘No legitimate claim or criticism’: CCC boss hits back at Logan saga calls

The head of Queensland’s corruption watchdog has defended his organisation after fraud charges against eight former Logan councillors, which led to the sacking of the council in 2019, were dropped due to a lack of evidence.

Crime and Corruption Commission chairman Alan MacSporran, QC, said the watchdog accepted the Queensland Director of Public Prosecutions’ decision to drop proceedings against a group of former councillors. Former mayor Luke Smith is set to face trial for two separate charges relating to misconduct in public office.

Crime and Corruption Commission chairman Alan MacSporran.Credit: Lucy Stone

The discontinued charges related to allegations the group worked to sack former chief executive Sharon Kelsey after she raised concerns about the council in October 2017, months after her June appointment, thus defrauding her of her contracted salary set to expire in June this year.

After calls from Local Government Association of Queensland chief executive Greg Hallam for him to step aside while an inquiry could look into the actions of the commission, Mr MacSporran said the CCC had acted within the law at all times.

“There can be no legitimate claim or criticism that the CCC had no jurisdiction to investigate, or that it was misconceived or somehow inappropriate, to charge these individuals,” Mr MacSporran said in a statement released late on Wednesday.

“The Queensland community expects a strong, independent agency to investigate allegations of corruption ... [the dropping of charges] will not deter this agency from investigating serious allegations of corrupt conduct, and where warranted, placing people before the courts.”

Mr MacSporran said a public interest disclosure from Ms Kelsey, who had a legal obligation to report corruption allegations, was serious in nature and was “without doubt” firmly in the watchdog’s jurisdiction.

CCC lawyers, along with a seconded police officer and Mr MacSporran himself, reviewed the evidence and took the view there were reasonable prospects of conviction and the charges were in the public interest, he said.

However, during the committal hearing stage, material came to light that led to the decision to end the prosecutions.

“In light of the above, it is difficult to see how it could be reasonably suggested there should be an inquiry into the CCC’s conduct,” Mr MacSporran said.

There were cheers in the Brisbane Magistrate Court when prosecutors announced they would drop the fraud charges against Russell Lutton, Cherie Dalley, Phil Pidgeon, Steve Swenson, Laurie Smith, Trevina Schwarz and Jennie Breene, along with Mr Smith.

Magistrate Stephen Courtney told the court he believed the move was the “proper decision” because of evidence he heard during the committal hearings last year.

Outside court, many of the former councillors spoke of the heavy toll the past two years had played on their personal and professional lives. Some described being turned down for jobs because of the charges hanging over them, and others the breakdown of relationships.

Mr Pidgeon, who had been a councillor for 22 years, said there needed to be some form of “making it right”, pointing to the laws that automatically swept them from office.

Mr Hallam said the decision was vindication after the “massive injustice” faced by the councillors at one of the 10 largest local governments in the country.

The affected councillors should be compensated and a public apology be issued, he said.

Ms Kelsey has separately sued the councillors for unfair dismissal, seeking to regain her role.

New Logan mayor Darren Power, who was one of four councillors not charged over the matter and assisted the administrator, said the council could now move ahead with certainty.

“This process has not been good for anyone,” he said.