CCC Chair Alan MacSporran and Integrity Commissioner Nikola Stepanov speak in Redlands about integrity and corruption

Risks of corruption in local councils were discussed recently in Redland City by Crime and Corruption (CCC) Chairman Alan MacSporran and Integrity Commissioner Nikola Stepanov.

Key points raised by Mr MacSporran and Dr Stepanov included:

  • public officials must put the public interest above their private interest
  • conflicts of interest will occcur but need to be declared and dealt with
  • friendships are the basis for a conflict of interest and can result in people’s behaviour being compromised
  • misbehaviour happens regularly
  • the culture of an organisation is fundamentally important and is significantly influenced ‘at the top’
  • decision making and processes have to be “completely transparent”
  • use of subsidiary companies avoids transparency
  • “right to information” needs to be applied more (much more) in accordance with the intent of the legislation

Some of these points are discussed in more detail in a CCC report tabled in State parliament today, titled:

Culture and corruption risks in local government: Lessons from an investigation into Ipswich City Council (Operation Windage)

Room for improvement at Redland City Council

Points raised at the recent forum point clearly to corruption risks at Redland City Council.

Redlands2030 has regularly discussed many of these matters and will continue to do so until the Council addresses these risks with significantly improved governance.

Redland City Council’s regular practice of having non-public meetings of the mayor and councillors to discuss agenda items prior to formal meetings lacks transparency.

Another way that Redland City Council regularly avoids transparency is delegating to the CEO decisions to award contracts.

The Council’s decision in 2014 to establish a property development company (Redland Investment Corporation) was commercially unnecessary. Councils can buy and sell property in their own right and have been doing so for decades.

But as explained by CCC Chair Mr Alan MacSporran, transparency is reduced through use of such entities which he said seemed designed to avoid transparency.

Any councillors concerned for good governance in the Redlands should advocate for improved transparency by:

  • Ending the practice of secret meetings
  • Ensuring that all decisions about major contracts are made at formal (minuted) council meetings with any conflicts of interest appropriately declared
  • Winding up the Redland Investment Corporation immediately
  • Reviewing Council procedures and processes thoroughly and regularly to improve accountability and transparency

Councillors concerned about good governance should also be ensuring that the staff working for Redland City Council are not harassed or intimidated for doing or saying what they believe to be right. And staff should be regularly empowered and trained to identify and report suspicious and inappropriate conduct, including under the Public Interest Disclosure Act.

An important aspect of Mr MacSporran’s presentation was his explanation about the responsibility of councillors (collectively and individually) to report misconduct.

It is not enough to assert: “I did nothing wrong”.  Councillors must act proactively act on their suspicions or observations of poor practices.  Further Councillors are required to ensure the Council itself has processes in place to ensure transparency and accountability.

Actions for the State Government

Fixing Queensland’s obstructive Right to Information laws is a matter which should be dealt with by the State Government.

In responding to a question at the Redlands Integrity and Accountability forum, CCC Chair Alan MacSporran agreed that the way Right to Information laws currently operate in Queensland reduces transparency and increases risk of corruption in councils and government agencies.

Redlands2030 has been put to considerable costs in contesting Redlands City Council’s decisions to obstruct the release of information. Sometimes the Council’s initial decisions have been overturned on appeal but a satisfactory outcome can take many many months to achieve.

The State Government should also act to stop councils from avoiding transparency through use of subsidiary companies (such as the Redland Investment Corporation) which are not subject to Right to Information laws and which can’t be investigated by the CCC.

The CCC has expressed its views on councils’ use of subsidiary companies in an investigative report released today, discussed below.

CCC report: local government culture and corruption risks

A CCC report Culture and corruption risks in local government based on investigations into Ipswich City Council was tabled in State parliament today.

The CCC says its investigations into Ipswich City Council has shown “how an unhealthy culture and unsound practices, once established and never corrected, can derail the efficient operation of a council.”

The CCC urges all councillors, council employees and ratepayers to read its latest report, saying:

Local governments have an enormous impact on the daily lives of all Queenslanders. Because of that, every council must ensure that they understand their obligations to ensure transparent processes, sustainable management of assets and infrastructure, and decision making in the public interest. Beyond that, councillors and employees must also be prepared to challenge and report any attitudes or behaviours that threaten to undermine those obligations. The example of Ipswich has shown the consequences of failing to do so.

Specific recommendations in the report are:

Recommendation 1

That all councillors across Queensland ensure that they are sufficiently informed of their council’s policies and procedures, particularly in relation to financial controls and its compliance with these policies and procedures.

That the Department of Local Government Racing and Multicultural Affairs provide information and/or training to inform councillors of their rights and responsibilities as councillors, including in areas such as governance and financial literacy.

Recommendation 2

a) That a minimum set of standards for policies and procedures and monitoring compliance be established for areas identified as high risk for councils.

b) That the Department of Local Government Racing and Multicultural Affairs, the CCC, the Queensland Audit Office and any other relevant stakeholders form a working group to identify areas of high risk and develop a set of model policies and procedures for these risk areas.

Recommendation 3

a) That the Department of Local Government Racing and Multicultural Affairs:
i. Examine the need for councils to continue to utilise controlled entities; and
ii. Review the beneficial enterprise provisions in the Local Government Act 2009 and City of Brisbane Act 2010 including whether further controls and regulation should be introduced to ensure that controlled entities do not expose the council to greater risks of corruption.

b) That councils’ controlled entities should be deemed to be units of public administration, bringing these entities within the oversight of the CCC and also subjecting them to the Right to Information Act 2009.

Recommendation 4

a) That the Local Government Advisory Group include a prohibition on the use of private email accounts when conducting official business in the councillors’ code of conduct.

b) That individual councils should also introduce a local law supported by appropriate policy and procedure which applies to councillors and employees to prohibit the use of private email accounts for the purpose of conducting official business.

Whilst the Parliament considers legislation to remove Ipswich City Council and appoint an administrator, and whilst allegations of criminality are before the court, it is not appropriate for the CCC to comment further.

Redlands forum on integrity and accountability

Integrity and Accountability forum in Redlands

Measures to promote public sector integrity and reduce corruption were discussed at a forum in Redlands on 9th August 2018.

Guest speakers were Queensland Integrity Commissioner Dr Nikola Stepanov and Chair of the Queensland Crime and Corruption Commission Mr Alan MacSporran QC

Presentations by Dr Stepanov and Mr MacSporran were filmed by Cr Paul Bishop and are available for viewing here.

Queensland Integrity Commissioner

The Queensland Integrity Commissioner is responsible for advising elected representatives and senior public sector officials about any ethics or integrity issue, including a conflict of interest issue.

The Commissioner also maintains the Queensland Register of Lobbyists.

Mayors and other local councillors have been able to access the Commissioner for advice since February 2018. This reform was implemented by Local Government Minister Stirling Hinchliffe in response to a recommendation by the Crime and Corruption Commission.

Crime and Corruption Commission

The Crime and Corruption Commission (CCC) investigates both crime and corruption in Queensland.

Anyone can report suspected corrupt conduct to the CCC.

You do not need proof, you just need sufficient reason to believe that the conduct has occurred.

Complaints can be reported through the CCC website.

Redlands2030 – 14 August 2018

9 Comments

Alby Sutton, Aug 20, 2018

The tenor of these recommendations, remind me significantly of several of the strong suggestionsI made in my address to Council on 25 January, 2017, following the near disastrous Russell Island bush-fires. I quote hereunder:

“Governing body support staff and elected representatives must better recognize that they are in the employ of we, their electors, and must act with more considered integrity in making decisions that affect our welfare and lifestyles……….

We are not puppets to be manipulated, ignored by exclusion from participation in decision-making debate, and then used as vehicles for the self benefit of our elected representatives……….

Against this background I would like to ask each of you here in Council to reflect on your own capacities to make appropriate judgments on future decisions you make; and when making such judgments, ensure that you have a complete understanding of all considerations and effects of such judgments, before putting them in to practice………..

The practices of this Redland City Council, in adhering to a culture of secrecy, the lack of adequate scrutiny enabled by comprehensive community and stakeholder consultation,………”

Sadly, little heed has been taken of these suggestions, but it is to be hoped that, given the public airing of C.C.C recommendations, the Council will now adopt a policy of totally transparent governance, and take appropriate action to ensure that such a policy is instituted as a matter of urgency.
Failure to do so will see the integrity-net tightening its strands around the RCC administrative block.
Be warned. The C.C.C. is closing in on the R.C.C.

Dr Dennis Tafe, Aug 20, 2018

A couple of concerned residents have mentioned that the walls are closing in on some of the conflicts of interest within the Redland City Council (RCC) and this must be making councillors nervous as other Councils are brought before the CCC. The Toondah saga has now been going on for at least 5 years, some of it behind closed doors with “commercial in confidence” agreements so that even councillors were not sure exactly what they were voting on. I am not a legal person so some of the legal jargon goes over my head but I am a qualified biologist and my PhD was carried out in Moreton Bay. So when a developer tries to use biology terms and jargon to impress councillors and state government representatives I can immediately see through it. I have just been handed a public “Project Overview” put out to the public by members of the Walker Corporation. It actually states that the project “will facilitate investment in exciting new nature and culture based eco-tourism experiences for the Quandamooka Coast.” Full marks for imagination but the project intends to destroy a protected migratory shore-bird zone, not improve or increase nature experiences. It goes on to state that it will have “bird-hides and low impact walking trails.” Bird-hides are built so that people can observe bird life in their natural habitat without disturbing them. A bird-hide is never built near a 10-storey block of units or in an area that is being dredged because that degree of human activity is not conducive to bird activity. This level of interference is high impact on the wildlife to the extent that the wildlife has to move somewhere else. Yet the statement mentions “low impact walking trails.” I have to ask “where?” having seen the plan. Nearby there is Santajuliana Way, which is a walking trail of at least 2 kms and at Point Lookout there is the well known Gorge Walk. Unless you think a board walk is a low impact walking trail this is again misleading, as is the accompanying artist’s impression of the project, the same one that appeared almost two years ago in the Redland Times.

Randy Perrett, Aug 19, 2018

So much to say, I firmly believe that the only people within the Redlands who think that JJ Richards being awarded the contract and Kazza getting a $10 000 donation from them doesn’t reak of dishonesty, lies, corruption, zero integrity would have to be those in the council.
If they’re not doing sly deals and being bought by developers or those tendering for contracts then why hide what they’re doing with close door meetings and not keeping minutes? None of them would know how to lie straight in bed.
Time to email my concerns to the CCC cause they have to be stopped before they sell the whole place off.

Amy, Aug 17, 2018

Luke, wouldn’t we all like to know the bodies that make up the RCC’s ‘in-house’ Investment Corporation!. Advised they purchased what had been a childcare centre end Oaklands St (oppos Alex Hills shops) now at end of Woolies parking lot next to petrol station. Locals on street would have preferred an aged care home as one said to me ‘they don’t throw wild parties’ as to their shock, I think its 13 of those square ‘cookie-cutter’ type town houses are being built there. To soften the blow to locals, Cr Elliott provided them with a ride on lawn mower for their community gardens other end of street as I was informed, there is a lot of grass to mow. Cr says jobs jobs jobs…short term…so where will they set their sights next to build on…?

Luke Daglish, Aug 16, 2018

Subsidiary Companies are set up by governments and councils for one reason and one reason only, and that is to keep the public at large from accessing information as to what goes on behind closed doors. I for one was hindered by the Redland City council while trying to get information on the setting up of the Redland Investment Corporation. Let us all hope that the government keeps the CCC recommendation that this practice is stopped and the ratepayers are allowed to peruse the books of these private un-transparent companies.

Amy, Aug 15, 2018

Public interest above private interest in Redlands local government? Decision making transparent? Wouldn’t we love to see that in Redland City Council!
As an elderly citizen, use public transport & passing Kinross Rd Thornlands recently, driver commented that Andrew Laming, our Federal Member for Bowman, owns 13 acres of farmland on Kinross Rd, located across from where, as retired members of Capalaba Bowls Club, we often lunched, known as Kinross Gardens with duck pond, & green garden setting, a peaceful environment. Today expect one of mayor’s close friends, developer Ron Loney & Co (ex-Ray White real estate agent) of Ausbuild, has developed most of the area? Reminded of that old saying ‘birds of a feather, flock together’ except in RCC, change word ‘birds’ to ‘pollies’ who decide, behind closed doors, what is best for we, the people of Redland City.
Mistakenly asked Council for small bin in my neighbourhood park in which I have had a personal interest since taking on resurrecting it late 1986. Youngsters from nearby TAFE today often spend lunch time in playground leaving behind wrappings, empty drink cartons, etc. Evenings evil doers leave smashed alcohol btls here & there, with locals pointing it out to me so take waste home to place in my own bin. A local family playing ball in the park told of finding syringes in sand, who knows what else….as Cr for Alex Hills Murray Elliot said ‘no bin will ever be put into this park’ an added burden for JJ Richards Waste Co & that he wanted nothing to do with the park…after having sent, after 30 years, photos of possible new equipment in the park where only pair of swings and slide (I repainted) to CEO hand carried to Cr Elliott outside his listening post at shopping centre. His feelings were hurt because I ‘went over his head’ sending photos to CEO who wouldn’t most likely have seen them anyway having many assistants taking care of issues like this one. Not one of the pieces of equipment were placed in the playground..(saw one in Beth Boyd Park Thorneside where many families can use the wonderful facilities there same time) but their choice of new tunnel slide was defective injuring foot of a 3-yr old..two useless board games that belong in a kindergarten were there, + 2 other climbing structures for youngsters to maybe age 10, installed….but prior to this, power saws were used to destroy the aesthetic appearance of the ficus shade trees surrounding the playground, to where one section had entire canopy cut out…for mulch? It’s a crying shame…and yes, on viewing the once beautiful umbrella shape shade trees, did cry as I followed their planting in days of our first mayor Eddie, who allowed me, with local Cr at the time happy for me to take care of parks, deal directly with council parks workers.
Star Transport take us old folk to various medical appts etc. door to door service, also help with home repair jobs, garden, etc. through My Aged Care. Noted on back of July 2018 edition of STARnews, proud supporters, apart from Bendigo Bank, Rotary, Q’ld Govt, COTA, RCC, JJ Richards & Sons Waste collection company included. Their contract with RCC will be ongoing as, next mayoral campaign can be assured of a generous contribution…last one of $10,000, a good start. Aged care homes at least $5,000? ex-pollies, businesses, sitting mayors have the best chance of holding on to their positions due to generous contributions where people can be bought to make signage of unwanted candidates disappear overnight where some residents, as in Capalaba and Birkdale for example, had no idea who was running against Mayor Williams last local election that prompted CM writer Williams to comment “Redlands campaign was dirtiest and grubbiest he’s ever seen’….hopefully next one won’t be quite so grubby.
In closing, I am asking Cr for Alex Hills Murray Elliott, discontinues using CAPALABA as being part of his electorate, due to disinterest in wellbeing of families in the added community, that comes under Cr Paul Gleeson, bet Finucane/Elmhurst Sts to end Crotona Rd units, which, apart from Chantelle Court, has only one other family sized park end Sagamore St with pair slides & swings. Nothing else. Tens of thousands of dollars are being spent in Alex Hills Parks. Also there is no apparatus for foster carers, elderly in form of exercise equipment that many, including me, with neck and shoulder pain, would love to see in the park along with my elderly friends.
Understand the big bucks being spent in Alex Hills O’Gorman Park will only have equipment, from tiny tots to late teens? Nothing again, for carers or elderly as in Holland Park’s Mott Park, where elderly get together using the various exercise equipment and entire families enjoy the facilities I was delighted to have seen for myself. I also suggested using soft matting in playground instead of sand but informed no, too expensive..but neighbour said he’s seen matting used in Redlands…Black…that attracts blistering summer heat. I only saw the natural shade used in Mott Park…black is ok indoors….not in children’s playgrounds. My view.

Dave, Aug 14, 2018

The forum last week went even further in clarifying that Councillors cannot just claim they didn’t know about problems and so they are innocent of one of their colleagues goes off the rail. All Councillors have an obligation to call out wrong doing…and if they don’t know problems exist they have an obligation to put in place procedures that will stop wrong doing. ‘

In a nutshell Councillors are not able to use the plausible deniability defence…they are elected to manage Council with integrity and so they need to put in place procedures that seek out and eliminate corruption, misconduct, etc etc. It’s about time the Councillors took these issues forward….don’t wait for a problem do it now!!!

Toni, Aug 14, 2018

I was most impressed with both speakers last Thursday, the take home message for me was councils and councillors must be accountable, open and transparent, honest and ethical. Conflict of interest is a major issue in councils and today we hear that the CCC is now investigating Moreton Regional Council I would be very uncomfortable if I was a Councillor in Redlands and last week allowing Mayor Williams to stay in the room to vote on a Shoreline issue. How much longer can the community put up with the ongoing abuse of power of some. The development company of Redlands has to be investigated, it is nothing more that an opportunity to hide what is happening with Council owned land, who buys for what and whether it was an open sale

Alistair, Aug 14, 2018

The walls are closing in on the RCC

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