The Mayor of a Sydney council helped property developers fast-track applications in exchange for overseas flights and accommodation, a corruption inquiry has heard.
NSW's Independent Commission Against Corruption (ICAC) is probing allegations City of Canada Bay Council's independent Mayor Angelo Tsirekas abused his position and failed to disclose conflicts of interest.
On the first day of hearings on Tuesday, counsel assisting Jamie Darams said Mr Tsirekas created a network of developers and professionals to help a series of projects clear his own council's planning hurdles.
The network allegedly involved developers I-Prosperity, Billbergia and Prolet, advisor Joseph Chidiac, real estate agent Francesco Colacicco, accountant Frank Bruzzano, former town planner David Furlong and City of Canada Bay Council's general manager Gary Sawyer.
"The nature and extent of those relationships and the effect they had on the exercise of Mr Tsirekas's and Mr Sawyer's official functions is at the heart of the Commission's investigation," Mr Darams said.
The ICAC heard the Mayor, who was elected in 2017, accepted free trips to Lebanon and Shanghai in exchange for his support for high-rise planning proposals.
It was also alleged he received tens of thousands of dollars in kickbacks.
A spokesman for Canada Bay Council said the Mayor had been granted a leave of absence "for personal reasons" for the duration of the hearing.
On Tuesday, the ICAC heard evidence involving Mr Tsirekas and Chinese developer I-Prosperity, which proposed building a 400-unit apartment block on Marquet Street in Rhodes in 2016.
The plans involved a tower 127m tall, well in excess of the City of Canada Bay's height restriction of 23m.
The ICAC heard I-Prosperity Group hired Mr Chidiac and Mr Furlong — who were Mr Tsirekas's friends — in a bid to usher the development through the planning process.
"In the period December 2015 to October 2018, [I-Prosperity Group] paid Mr Chidiac in excess of $1.4 million," Mr Darams said.
The payments, he told he hearing, were mostly in return for Mr Chidiac's role in liaising between the developer and Mr Tsirekas.
After a private meeting with I-Prosperity's director, it is alleged Mr Tsirekas travelled to China six times from late 2015 , with the flights, accommodation and entertainment partially paid for by I-Prosperity Group or Mr Chidiac.
Mr Darams told the ICAC that on May 31, 2016, Mr Tsirekas sent a draft council resolution to his friend and I-Prosperity Group agent, Mr Furlong, who made amendments to it which would benefit the developer.
The resolution to speed up the planning process was later passed with the amendments at a council meeting.
The planning application for the 127m tower was ultimately never approved.
Another allegation concerned Mr Tsirekas, Mr Sawyer, real estate agent Francesco Colacicco and a council-owned property at 231 Victoria Road, Drummoyne.
The ICAC heard Mr Colacicco, who was entrusted to sell the property, ended up buying a third of it under a business interest at a price below market value.
It's alleged that neither Mr Tsirekas nor Mr Sawyer disclosed their relationships with Mr Colacicco.
Mr Darams alleged a complex web of companies was also used to allow Mr Tsirekas to receive part of a downpayment on a $994,000 apartment.
It was alleged the money came from a company owned by Mr Colacicco.
Ultimately, Mr Tsirekas did not go through with the purchase, but Mr Darams said he received most of the $94,000 deposit.
He told the inquiry Mr Tsirekas also received a $21,000 loan from Mr Colacicco and that the hearings would investigate if the Mayor made the appropriate disclosures to council.
The hearing into allegations surrounding Mr Tsirekas is expected to continue for four weeks.
