Allegations the CCC is probing
MAYOR TOM TATE
The following six complaints involving Mayor Tom Tate are being investigated by the CCC. The complaint and allegation are detailed.
(1) CCC is investigating: That at a meeting of council on November 4, 2013, to consider an application for a development known as Waterglow, on the Surfers Paradise Bowls Club site, Cr Tate did not fully disclose his material personal interest.
The allegation: Cr Tate, who did declare an unspecified material personal interest, did not explain that he owns 50 per cent of Crestden Pty Ltd, the development company, and a one-third interest in two of the land lots at the bowls club through his 100 per cent shareholding of Silk Mercantile Pty Ltd. He is a director of both of those companies.
At a special budget committee meeting on May 2, 2017, and at full council meetings on May 17 and July 25, 2017, Cr Tate participated in debate and voted on resolutions concerning an updated funding model for the New Cultural Precinct Stage One. The model proposes that funds will be raised from the sale of the Surfers Paradise Transit Centre (SPTC) and Bruce Bishop car park (BBCP), as well the sale of other parcels of land, including 72 Remembrance Drive.
The allegation: The Mayor had a material personal interest which requires him to leave the chamber and not debate or vote on the matter. Through his interest in Waterglow, a proposed 56-level apartment tower, Cr Tate and partners were negotiating to buy the council-owned land at Remembrance Drive.
That the Mayor at council meetings on May 2, May 17 and July 25, 2017, made statements he knew to be false and misleading in support of the proposed funding model for the Cultural Precinct Stage One, amounting to a misuse of his authority for the purposes of deriving a benefit for himself.
The allegation: These comments include denying over 1000 car parking spaces were lost along the light rail route and claiming over 25,000 tram trips were made each day when GoldLinQ’s published figure was under 21,000.
The Mayor also claimed a boutique hotel was being developed nearby at 3 Beach Road and that the owner would not need the BBCP as a submission made by the land owner said guests would arrive mainly by public transport. The site had been granted a “relaxation” of 45 spaces. Other hotels were using the BBCP for overflows and valet parking.
However, both the planning department and CEO subsequently confirmed no such submission at 3 Beach Rd had been received by council.
Cr Tate’s assurances regarding Beach Road may have the effect of stifling concern raised at the meeting.
Whether the Mayor engaged in a pattern of conduct concerning council decisions relating to matters in which he has a material personal interest and that he did so with the express purpose of providing a benefit to himself and business associates.
The allegation: The approvals and concessions by council regarding the Waterglow development would most likely increase the value of that property. It is likely the bowls club land will significantly increase in value if the SPTC and BBCP are redeveloped.
That the Mayor misused his authority in nominating himself, during a closed council meeting, to negotiate a new employment contract with CEO Dale Dickson, aware that Mr Dickson had been delegated by council to oversee sale of council land to a business in which the Mayor held a material personal interest.
The allegation: The move to reconsider the CEO’s contract renewal was initiated in Cr Tate’s office and “effectively delegated to himself”. This followed one-on-one negotiations last time around in 2013. After another closed session, a confidential staff matter resolution moved by Cr Tate and seconded by Deputy Mayor Donna Gates gained a unanimous vote. The Mayor had authority to execute a new contract of employment to the CEO for three years and nine months.
(6) The CCC is investigating:
That the Mayor failed to update his Register of Interests within the statutory time frame to properly disclose receipt of hospitality benefits from the representative of a Chinese developer, his lawyer Tony Hickey.
The allegation: The Mayor on October 5 last year further updated his Register of Interests, adding disclosure of a gift of “return flight and accommodation to China” from Hickey Management without further details. It is alleged Cr Tate’s register was non-compliant due to being made out of the statutory 30-day time period. Media reported Cr Tate took the trip on August 16 at the invitation of Mr Hickey’s client, Beijing-diversified financial group Forise Holdings, which was building the 88-level $1.3 billion Spirit development. On October 5, Cr Tate amended his Register under Section 12Gifts over $500, to include Hickey Management-return flight and accommodation to China. Under the Local Government Act, the register should have been updated by mid-September. Cr Tate had reportedly confirmed the trip as private travel, not official travel, but it should allegedly have been disclosed as a sponsored hospitality benefit. If proven, breaches of register of interests can carry penalties of more than $10,000 fines and can prevent a councillor from holding office for four years.
CEO DALE DICKSON
The following two complaints involving council CEO Dale Dickson are being investigated by the CCC. The complaint and allegation are detailed.
(1) The CCC is investigating:
That the CEO, aware his future contract was being negotiated directly by Mayor Tom Tate, failed to identify and act on an arising conflict of interest resulting from his negotiation to sell council land to a business in which the Mayor had an interest.
The allegation: These are “serious breaches of legal and ethical obligations” that bind a council CEO. The sale of the Bruce Bishop car park and Surfers Paradise Transit Centre involved one of the city’s largest assets. The Mayor held a substantial interest in neighbouring land at the bowls club. Companies of which he had shares and was a director were in negotiations with council to buy 72 Remembrance Drive. The sale was placed in the hands of the CEO when the Mayor had delegated to himself sole responsibility of negotiating the management performance criteria for the CEO’s new contract.
Mr Dickson had been negotiating with Mr Tate’s partners on the sale of council land at the bowls club since October 2016. Talks on the CEO’s contract renewal began in June 2017, behind closed doors. This is “an extraordinary set of circumstances”. Mr Dickson is bound by the Ethical Principle section 9 (2) (b) to “ensure that any conflict that may arise between the official’s personal interests and official duties is resolved in favour of the public interest”.
That the CEO failed to correct the record in relation to statements made by Mayor Tom Tate which he knew to be false and misleading, about the funding model for the Cultural Precinct Stage One.
The allegations: These statements include more than 1000 vehicle spaces being lost along the light rail route and claiming that over 25,000 tram trips were being made each day when GoldLinQ’s published figure was under 21,000. The Mayor claimed that a nearby approved boutique hotel site at 3 Beach Rd would not need BBCP as the land owner submission said guests would arrive mainly by public transport. The planning department and CEO subsequently confirmed no such submission had been received by council. The CEO failed to correct the record in relation to false and misleading statements made by Cr Tate to councillors and the public.