Hammondville Park Land Sale Under Scrutiny
The inquiry hearings resumed on Monday the 18th of August with featured testimony from Shayne Mallard, who returned to the witness stand to address questions about probity concerns focusing on a controversial land sale between Council and the Moorebank Sports Club transaction and heard that Mr Mallard became involved in the “tail end” of a transaction that had been developing for nearly a decade. The sale involved Council-owned land adjacent to the Moorebank Sports Club, which Mr Mallard described as “landlocked” by Council property.
According to evidence presented, Sporties had expressed interest in purchasing Council land as early as 2012. The transaction evolved through various iterations, initially involving three lots (101, 102, and 103) before being reduced to two lots (101 and 102) when Council determined lot 103 was not for sale.
A chronology presented to the inquiry revealed:
- In August 2022, Sporties submitted an offer of approximately $6.7 million for lots 101 and 102
- On 25 October 2023, Council authorised the CEO to explore disposal of the land
- On 13 December 2023, Council resolved to sell the proposed lots
- On 7 February 2024, a rescission motion failed, but Council resolved to defer the sale until extensive community consultation was completed
- Community consultation was subsequently conducted between February and April 2024
- On 26 June 2024, a report recommended approval of the sale
- In July 2024, Council resolved to defer for further due diligence
- In August 2024, a rescission motion failed and Council approved the sale
- On 28 August 2024, a further rescission motion failed
- On 26 October 2024, contracts were executed with settlement scheduled for 30 June 2025
Probity Concerns Emerge
The inquiry focused on probity issues that emerged late in the process. Mr Mallard testified that David Galpin, a legal counsel at Council, alerted him to concerns that the draft unsolicited proposal policy “hadn’t been strictly adhered to.” This prompted Mr Mallard to engage O’Connor Marsden to conduct an independent probity review, which was commissioned around May 2024 and completed by 18 June 2024.
“It came as a surprise to me, as I had inherited a process,” Mr Mallard told the inquiry, acknowledging that he wasn’t initially aware the policy applied to this transaction. “Once it was brought to my attention, the shortcomings, then I straightaway said let’s get the probity report done.”
The probity report identified several deficiencies in the process, including:
- Lack of documentation for initial discussions and negotiations
- No formal approval of the decision to enter into discussions at the time Council entered a memorandum of understanding
- Insufficient justification for proceeding with a non-competed direct negotiation sale
- Absence of detailed evaluation against identified criteria
- No confirmation that individuals involved were free from conflicts of interest
Community Benefits and Context
Mr Mallard provided context about the strategic importance of the transaction, explaining that the land in question had been used as free community car parks. He noted the sports club was “totally landlocked” by Council land and had indicated it might relocate to another area if unable to expand.
“They had a desire to expand their footprint… they didn’t have function rooms or anything—at capacity, and had landholdings in other Local Government areas, so they were quite clear they might pull out of there and go somewhere else,” Mr Mallard explained.
The community consultation conducted in early 2024 reportedly yielded positive feedback, with two key conditions: that parking be retained “free of charge, in perpetuity” and that sale revenue be “hypothecated” (specifically allocated) to the Hammondville Park Masterplan rather than absorbed into general Council funds.
The Masterplan, according to Mr Mallard, envisioned developing “a hub of sport, child care, library, that type of thing” for the precinct.
Broader Implications
The testimony highlighted potential governance issues within Council, particularly regarding adherence to policies designed to ensure transparency and probity in property transactions. Mr Mallard acknowledged the experience was “an education curve” and stated that subsequently, the unsolicited proposal policy was being applied “much more vigorously” to other proposals.
The hearings continue tomorrow Tuesday 19th of August at 10am, with United Services Union Organiser Sandie Morthen expected to provide testimony on Council operations and the sequence of events that lead to Police being called to the Liverpool Cit Council in April 2024..
