Councillor Mallard’s donation discretion

Councillor Shayne Mallard has voted for a multi-million dollar planning proposal on a site owned by a campaign donor.

John Newell Pty Ltd, who owns a car dealership in the middle of the proposed Green Square Town Centre, donated $1000 to the “Liberal Party – Sydney Campaign” less than three months before Cr Mallard’s 2008 election as Sydney Council’s only Liberal.

Cr Mallard declared the applicant was a donor to the Liberal Party before voting at this month’s Council meeting, but said the interest was “less than significant” because no donations benefit him personally.

However, in 2008, Cr Mallard declared the campaign donation to the Election Funding Authority.

He lodged an amendment in 2009 saying he had received no donations, explaining the initial disclosure as a mistake.

He said all donations had been made to the Party’s NSW branch.

A confidential report by the Department of Local Government states that in early 2009, the NSW Liberal Party emailed its local office holders and candidates, decreeing that donations to local campaigns must go into its Local Government Conference bank account.

The Party told them to submit ‘nil returns’ to the Election Funding Authority – leaving all incoming and outgoing expenditure blank.

In March 2009 Mallard wrote to the Election Funding Authority: “we have of course completed a group return submitted to the Liberal party as a party entity that includes all donations etc as required and I am aware that this has been incorporated into the NSW Liberal return for the period.”

Council’s Model Code of Conduct decrees that Councillors mustn’t vote on matters where a donation exceeding $1000 has been received in direct benefit to their campaign in the previous four years.

It states contributions below $1000 may still cause a conflict of interest and councillors should determine any significance and take the appropriate action.

A full disclosure must be made in writing either way.

When City News asked Cr Mallard about the donation he said he had no control over what the Liberal Party used the money for.

He didn’t clarify whether the Party honoured donations in support of specific local campaigns.

In September 2009, NSW Greens Senator Lee Rhiannon accused Cr Mallard of non-disclosure after he ‘un-declared’ donations totalling $11,000, and voted for developments of two of the donor’s hotels.

The Department of Local Government investigated and cleared him of wrongdoing.

Cr Mallard’s 2008 campaign included a ‘Friends of Shayne Mallard’ fundraiser, 120,000 brochures, 200 plastic signs, 70 A-frame placards, and advertisements in local newspapers.

By Lawrence Bull