An explosive investigation by the anti-corruption agency in Victoria has uncovered evidence that a local construction manager’s commercial interests were escalated in return for cocaine delivered to a former mayor of a Melbourne council.
Today, the results of Operation Leo were announced by the Independent Broad-based Anti-corruption Commission.
The operation was launched in May of last
year to examine claims of bribery made against politicians at Moonee Valley City Council in the inner north-west of Melbourne.
“Systemic corruption vulnerabilities relating to councillor integrity obligations” were exposed in the 32-page report.
Among the allegations was that former mayor Cameron Nation, on several occasions between 2020 and 2022, used a loophole to expedite property applications in return for cocaine from a construction manager involved with the applications.
A local soccer club may have bribed council members to get exclusive use of a municipal sports field, according to the commission.
According to IBAC, the unidentified construction manager “regularly” gave cocaine and Xanax to Nation and his partner, and on occasion, the manager would provide Nation the substance in return for favoritism in the council’s decision-making process regarding his permission applications.
According to the investigation, in early March 2021, the then-mayor volunteered to help adjust the parking signage outside a business owned by the construction manager’s relatives. In response, Nation’s partner allegedly picked up cocaine from the manager’s house.
“My partner wants a little bit of cheek cocaine,” stated a text message from Nation to the construction manager. “I’ll sort out street address of the business for it.”
According to what the council told IBAC, other council officers took separate actions and according to proper procedure while changing the signage.
As part of his efforts to influence a council decision over a townhouse development application in his name, the commission stated that Nation received cocaine from the building boss.
“Could you kindly verify its whereabouts? It weighs seven grams of premium grade,” the construction manager texted Nation in June 2021.
When the council denied Nation’s planning proposal in December 2021 because it violated floodplain regulations, they gave him “14 of the best,” a reference to 14 grams of cocaine, in exchange for his assistance.
The IBAC was unable to ascertain whether or not the transaction proceeded after Nation requested the property’s address.
Nation claimed during the IBAC’s examination that none of his other council members were aware of his connection to the construction manager.
Despite his initial denials, he eventually admitted that evidence indicated “a clear offer of assistance in exchange for cocaine” in the text messages, according to the report.
Essendon Royal Soccer Club ERSC and the construction manager allegedly conspired to discuss bribing councillors in order to gain access to Cross Keys Reserve in Essendon, according to the IBAC.
The builder asserted in an intercepted April 2017 phone call between the ERSC president and the construction manager that a second councillor had asked for payment to bring a third councillor “on board” with the ERSC’s agenda in order to gain a vote in favor of the organization at a future meeting.
Allegedly, the councillors were offered bribes ranging from $40,000 to $50,000 to split amongst them, or $15,000 per annum over four years.
Nation insists he never asked the construction manager for money, and the watchdog failed to find evidence of bribes.
Notwithstanding this, the panel found that the ERSC had offered Nation and two other council members “other inducements” such as paid meals, free memberships, and an invitation to a party.
Deputy Mayor Narelle Sharpe and Councillor Jacob Bettio “used their positions to influence MVCC decisions in favour of the ERSC and at the expense of other local sporting groups and the wider municipality,” according to the investigation, which also states that Nation was there.
“These councillors consciously engaged in voting on MVCC matters related to the ERSC, despite receiving undeclared hospitality from the ERSC,” according to the investigation.
“They actively sought to secure votes to grant the ERSC exclusive access to Cross Keys Reserve and Pavilion, outside formal MVCC meetings.”
Community faith in local government is “eroded” by the actions of the council members, according to IBAC Commissioner Victoria Elliott.
“As elected officials, councillors are responsible for engaging with a wide variety of community stakeholders, council staff, and their fellow councillors, in a lawful and constructive manner,” according to her.
“IBAC identified that some councillors contravened these obligations by failing to follow proper processes, not declaring conflicts of interest, not declaring gifts and hospitality and not reporting suspected corrupt conduct.”
Beginning in October 2020 and continuing into October 2021, Nation presided over the Moonee Valley council.
