The NSW Independent Commission Against Corruption (ICAC) hasfound that four individuals, including two public officials, engaged in corruptconduct through a dishonest scheme involving the purported false sale and/ordevelopment of properties owned by the Awabakal Local Aboriginal Land Council(ALALC) that resulted in three of them deriving more than $1 million inbenefits.
The Commission’s report, Investigation into dealingsinvolving Awabakal Local Aboriginal Land Council land (Operation Skyline),released today, examines the conduct of Nicholas Petroulis, solicitor DespinaBakis, former ALALC chairperson Debbie Dates and former deputy chairpersonRichard Green, between 2014 and 2016, and their involvement in the scheme.
The scheme comprised Mr Petroulias falsely representing thata company he controlled, Gows Heat Pty Ltd (Gows), had an option to purchaseALALC properties that it could on-sell to another party. To provide credibilityfor this representation, Ms Bakis prepared false contractual documents betweenGows and the ALALC; she also had an undeclared conflict of interest in that shewas engaged as the solicitor for the ALALC, through her legal business,Knightsbridge North Lawyers, while also representing Gows. Mr Petroulias’conduct included improperly altering ALALC board meeting minutes andparticipation in preparing the sham agreements.
Gows’ purported option was “sold” to a third party, theSunshine Property Investment Group Pty Ltd (Sunshine), for more than $1million. While Sunshine had been informed that the bulk of the money would goto the ALALC, all of the funds went to Mr Petroulias, Mr Green, and Ms Bakis.Mr Petroulias ultimately received over $600,000, and Mr Green and Ms Bakisreceived financial benefits totalling $244,000 and $179,000 respectively.
This “sale” breached multiple requirements of the AboriginalLand Rights Act 1983 (the ALR Act). For example, the dealing did not havethe approval of the NSW Aboriginal Land Council as required by section 42G ofthe ALR Act. In addition, Mr Green and Ms Dates signed the contractualagreements with Sunshine on behalf of the ALALC despite lacking the authorityto do so, and other ALALC board members, staff and members were not aware ofthis transaction.
The Commission found that pre-existing entrenched poorgovernance, failures to follow the ALR Act, and a breakdown of communicationmade the ALALC vulnerable to the corrupt conduct exposed in this investigation.The Commission has made 15 corruption prevention recommendations, some specificto the ALALC, but also recommends that the NSW Aboriginal Land Council and theALR Act registrar consider if they all should be applied to LALCs in general.
The Commission seeks the advice of the Director of PublicProsecutions (DPP) on whether any prosecution should be commenced. The DPPdetermines whether any criminal charges can be laid, and conducts allprosecutions. The Commission is of the opinion that consideration should begiven to obtaining the advice of the DPP about the prosecution of Mr Green, MrPetroulias and Ms Bakis for various offences.
The Commission held a public inquiry in this investigation,with 53 hearing days in 2018, 2019 and 2020. Former Chief Commissioner the HonPeter Hall QC presided at the public inquiry and 38 witnesses gave evidence. On5 March 2021, the Chief Commissioner ruled that the public inquiry wasconcluded. Further information about the progress and delay in completion ofthe public inquiry is available in chapter 2 of the report. The report isavailable on the ICAC website at www.icac.nsw.gov.au.
