Moonee Valley City councillors have used their positions to inappropriately influence council decisions, a corruption watchdog has found.

Tasked with investigating allegations of bribery and misconduct by councillors at Moonee Valley City Council in inner-north Melbourne, the Independent Broad-based Anti-corruption Commission has revealed three councillors – Cameron Nation, Narelle Sharpe and Jacob Bettio – used their positions to sway MVCC decisions in favour of the Essendon Royals Soccer Club at the expense of other sporting groups.

The investigation – Operation Leo – also examined whether the councillors sought to obtain financial benefits or other inducements in return for votes favourable to the ERSC.

“These councillors consciously engaged in voting on MVCC matters related to the ERSC, despite receiving undeclared hospitality from the ERSC,” says the IBAC report. The undeclared hospitality included free dinners, club memberships and an invitation to an event.

A former Moonee Valley mayor, Nation was also found to have received cocaine and Xanax for “his assistance on several property-related matters, including influencing the outcome of MVCC
applications”.

According to the 32-page document – tabled before the Victorian parliament on Wednesday – the councillors also actively sought to secure votes to grant the club preferential outcomes outside of formal council meetings.

“Some MVCC councillors used their positions to inappropriately influence council decisions, bypass decision-making processes and inappropriately disclose information,” says IBAC.

“These councillors were not acting in the interest of the community. Instead, they sought to influence MVCC decisions and sought preferential outcomes to benefit their personal relationships and interests.”

As well, IBAC heard evidence that the ERSC president discussed bribing councillors to secure favourable votes for the club.

“Based on financial analysis and the evidence of witnesses, IBAC could not substantiate that any payments were ultimately made,” says the report. However, evidence suggests “an intent” to bribe councillors in exchange for preferential outcomes for the ERSC.

IBAC commissioner Victoria Elliott said the investigation showed how easily local government decision-making can become corrupted.

“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.”

Elliott said, 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 its investigation into the MVCC, IBAC has made a recommendation to the minister for local government Melissa Horne to ensure that Local Government Victoria includes in its councillors’ code of conduct a clear expectation that suspected corrupt conduct is reported.