Victoria’s Independent Broad-based Anti-corruption Commission (IBAC) has released the findings of Operation Leo, a 17-month probe set up to investigate allegations of bribery by councillors at Moonee Valley City Council.
The anti-corruption watchdog found that former Mayor, Cameron Nation – who served in the Council’s top job for 12 months in 2020/2021 – received cocaine in exchange for favourably handling the business interests of a local construction manager.
The 32-page report tabled in the Victorian parliament on Wednesday details “systemic corruption vulnerabilities relating to councillor integrity obligations”, including claims that on multiple occasions Mr Nation bypassed normal council processes to fast-track property applications linked to the construction manager in exchange for drugs.
The report states that in March 2021, Mr Nation’s partner collected cocaine from the construction manager’s house after an offer to help alter parking signage outside a business owned by relatives of the man.
“[My partner] wants a little bit of cheek [cocaine],” a text message from Nation to the construction manager read. “I’ll sort out [street address of the business] for it.”
The council told IBAC the signage was changed, but claimed due process had been followed.
In another text, Mr Nation falsely claimed credit for getting a graffiti removal notice for the premises overturned.
“Can’t believe I’m that efficient. Gold medal standard, that and the graffiti. God status” Mr Nation texted.
When examined by IBAC, Mr Nation acknowledged that this message referred to actions he had taken to assist the construction manager as a friend and in exchange for cocaine.
The Commission said Mr Nation also received cocaine for his role in influencing a council decision for a townhouse development application in June 2021.
“Can u check where it is at please…7 [grams] of the best,” a text to Mr Nation from the construction manager reads.
IBAC said the matters showed Mr Nation’s “clear awareness of his conduct and willingness to misuse his position to bypass proper council processes”.
Then, in December 2021, the then-Mayor was offered 14 grams of cocaine in return for his help with a planning application. The application was subsequently refused by the Council.
While Mr Nation initially denied the allegations against him, he later conceded the text message evidence showed “a clear offer of assistance in exchange for cocaine”, the report states.
The watchdog also investigated claims the construction manager had discussed potential bribes to councillors in a bid to get access to Essendon’s Cross Keys Reserve on behalf of Essendon Royal Soccer Club.
While IBAC wasn’t able to substantiate if bribes were paid, it did find that Mr Nation and two other councillors received “other inducements” from the soccer club, including paid dinners and free memberships.
The report stated that, with then-Mayor Nation, 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”.
“These councillors consciously engaged in voting on MVCC matters related to the ERSC, despite receiving undeclared hospitality from the ERSC,” the report states.
“They actively sought to secure votes to grant the ERSC exclusive access to Cross Keys Reserve and Pavilion, outside formal MVCC meetings.”
IBAC found that some Councillors had used their positions to inappropriately influence Council decisions in favour of third parties and at the expense of other local sporting groups and the wider municipality.
“There are significant risks associated with councillors misusing their positions for personal advantage and at the expense of the public interest. When councillors misuse their positions as elected officials, they undermine a council’s effectiveness and erode the community’s trust in their local government,” said 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.
“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.”
As a result of Operation Leo, IBAC has made a further recommendation to the Minister for Local Government to ensure that Local Government Victoria includes in the Model Code of Conduct for Councillors a clear expectation that Councillors report suspected corrupt conduct. The Model Code should include guidance on how councillors should report such conduct, including how to ensure compliance with the Public Interest Disclosures Act 2012, IBAC stated.
“IBAC is encouraged by the recent amendments to the Local Government Act 2020, that address many of the governance and integrity recommendations for Local Government following Operation Sandon and we look forward to the progress of the remaining recommendations from that report,” Commissioner Elliott said.
IBAC is choosing to publicly report on Operation Leo to highlight that public trust can be significantly eroded when elected officials misuse their positions, and to demonstrate how the identified corruption risks remain an ongoing concern for local government in Victoria, she said.
Mr Nation’s more than a decade as a Councillor ended in March this year, when he abruptly resigned during an online Council meeting, saying: “Ciao, I’m out”.
In a statement, the Council said it welcomed the release of the IBAC report.
“Council’s Administration has been working closely with the Municipal Monitors (Ms Prue Digby and Mr Phillip Carruthers) since their appointment in late January 2024 to improve transparency of decision-making, and have already taken several important steps to drive improved governance under their guidance. The steps include better clarification and transparency in conflict of interest disclosure,” the Council stated.
“Under the guidance of the Municipal Monitors, the Administration has also been focusing on a high-quality Induction/Transition Plan for the new Council that fosters a culture of transparency, honesty, integrity and trust. This will also ensure that all newly elected Councillors are well-equipped to govern the City of Moonee Valley during the new Council term.
“Council does not make, and will not be making, any comment on behalf of current or former Councillors who have been named in the IBAC Report.”
In January, municipal monitors were appointed to the Council for six months.
Read the IBAC report here.