THE level of corruption at Wollongong Council was "without precedent" a sensational public inquiry found yesterday.
Developers, council staff and councillors were caught in a web of sexual and corrupt business relationships for which 11 people would face prosecution for a total of 139 criminal offences.
The commissioner of the Independent Commission Against Corruption, Jerrold Cripps, said it was not uncommon to find cases where multiple layers of management in an organisation had failed to detect corrupt conduct. "But to establish actual corrupt conduct within five levels of a NSW public sector organisation, as has occurred with Wollongong City Council, is without precedent," Mr Cripps said in a statement.
The final report from ICAC, which examined how a culture of corruption inside the council created opportunities for developers to influence planning decisions and make windfall profits, will have ramifications for the way other councils assess developments and could force the State Government to take a bigger role in planning decisions.
But Opposition parties said the Government had escaped any real criticism, despite its role in nurturing close relationships with developers.
Many of the recommendations for prosecution were against ALP councillors and officials or developers who were generous donors to NSW Labor.
ICAC found that early signs of corruption at the council could have been detected if the Department of Planning had made councils record when they overrode their own planning rules to approve developments.
The commission also made 27 corruption prevention recommendations, many of which will have broader relevance to other councils.
Despite that, the Premier, Nathan Rees, said the report proved NSW was a "corruption-resistant state".
"As regrettable
as that whole incident was, today's release of that report demonstrates that we are a corruption-resistant state," Mr Rees said. "And, where it does exist, it does get routed out."
ICAC recommended that the former council town planner at the centre of the inquiry, Beth Morgan, be prosecuted for various offences, including corruptly receiving benefits from, having sex with, and leaking confidential council documents to developers while assessing their applications.#
It said she "abused her position at the council to provide favours to developers with whom she was intimately involved".
The commission also recommended charges against developers Frank Vellar, Glen Tabak and Lou Tasich; senior council staffer and ALP official Joe Scimone; former ALP councillors Val Zanotto, Kiril Jonovski, Zeki Esen and Frank Gigliotti.
Convicted criminals and ICAC impersonators Ray Younan and Gerald Carroll should be prosecuted for their role in a bribery sting that netted at least $500,000 from some of the people under investigation.
Corrupt conduct findings were also made against Beth Morgan's council supervisors, former general manager Rod Oxley and John Gilbert.
In the wake of ICAC's public inquiry, the Government sacked Wollongong Council and placed three administrators in charge.
Elections are not expected for four years.
Brad Hazzard, the Opposition planning spokesman, said "the "sex, lies, deals and DAs" at the council flourished only because of the corrupt framework supported by the Government.