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Moore's donor vote broke council code

THE Lord Mayor of Sydney, Clover Moore, has denied she acted inappropriately after apparently breaching the council's code of conduct by participating in a decision to buy a property from her largest individual political donor reports Malcolm Knox in the Sydney Morning herald of 1 December 2008.

On November 3, the City of Sydney council decided to buy a building at 107 Redfern Street, Redfern, from the businessman Peter Holmes a Court for approximately $3 million.

Mr Holmes a Court had donated $6940 to Ms Moore's campaign for the seat of Sydney in last year's state election, and the MP, doubling in her role as mayor, declared her conflict of interest. However, she chaired the meeting at which debate on the matter took place and the vote on the ultimate decision to buy the property was carried unanimously by voices alone.

The code of conduct applying to councils says a councillor "must absent self from debate and vote".

The purchase was the last item on the agenda of the council's meeting on November 3 and the debate over it was carried out in camera, out of public view.

In a one-line written response to the Herald's inquiries, Ms Moore said: "I sought advice at the time and acted in accordance with that advice. I believe my action to be appropriate."

However, on October 17, the council asked solicitors David Baird and Monica Kelly, from the legal firm Maddocks, for advice on the matter, and their response was that a councillor in Ms Moore's position should absent herself from the meeting.

In their formal advice, a copy of which has been obtained by the Herald, Mr Baird and Ms Kelly wrote to the council on October 22: "[If] a single donor contributes more than $1000 over four years to an individual councillor or their 'official agent', then the conflict of interest is a 'significant non-pecuniary conflict of interest', which must be declared and the councillor must absent self from debate and vote."

Their advice was based on the June 2008 model code of conduct applying to local councils. This code was introduced after revelations of widespread links between councillors and their business donors following the Independent Commission Against Corruption inquiry into Wollongong City Council. Section 440 of the Local Government Act states that the model code is binding on councils until they introduce their own codes.

The relevant part of the model code states that if councillors "have received, in the previous four years, a political donation exceeding $1000 that has directly benefited their campaign, from a donor who has a matter before council, they must disclose this fact and have no involvement in the matter … This applies to all councillors, regardless of whether they are independent councillors or a member of a political group or party."

Ms Moore has a long record of statements opposing donations from developers. In February she declared in her email bulletin to constituents: "I refuse developer donations and donations that could create a conflict of interest."

Her relationship with Mr Holmes a Court has been questioned in the light of the council's development of Redfern Oval while he is an owner of South Sydney Rugby League Club.

When the council planned an agreement with Souths last year over the use of Redfern Oval, Ms Moore declared a conflict of interest as she had been Souths' guest at an NRL game, but had reimbursed the club.

She told the Herald in March that she did not regard Mr Holmes a Court as a property developer, saying: "Mr Holmes a Court is a businessman not directly engaged in the development industry."

Source: www.smh.com.au/news/national/moores-donor-vote-broke-council-code/2008/11/30/1227979844980.html