Newcastle Independent councillor John Church has defended himself against questions about campaign donations and called the questions "a fairly immature and futile attempt at a political smear just weeks out from an election".
The fiery standoff stemmed from deputy lord mayor Declan Clausen asking Cr Church about 2021 campaign donations at the June council meeting during an item relating to an audit of the special business rate expenditure policy.
Cr Clausen questioned Cr Church about $42,000 in political donations given to four Newcastle Independents candidates by the Newcastle Now Partnership Incorporated ahead of the 2021 local council election.
He asked whether the donations could be "unaccounted for ratepayer funds" from former Business Improvement Association (BIA) Newcastle Now.
Newcastle Now was one of four BIAs established in 2011 as not-for-profit organisations which were almost entirely reliant on five special rates levied on commercial property owners in the Newcastle city centre, Hamilton, Mayfield, Wallsend and New Lambton.
Funds from the special rates were reserved for the promotion, beautification and development of the precincts they were collected from.
The council restructured the BIA scheme and excluded Newcastle Now and Hamilton Chamber of Commerce from applying for funding after a report by consultants AECOM referred to "poor financial disclosure relating to BIAs".
Cr Church took the questions on notice and provided answers when the matter came back to council on July 23.
The Independent councillor said he received two $3000 donations from Newcastle Now Partnership, which he issued receipts for as reportable donations.
"The NSW Electoral Commission has reviewed these donations and confirmed that no penalty will be (or has been) imposed on me in relation to these donations," Cr Church said in his response.
"As a result, I deny any wrongdoing in relation to these donations and require council not to impugn my reputation any further in relation to these donations."
He said he had no association with Newcastle Now Partnership, and directed questions about where the donations came from to Newcastle Now.
Newcastle Now Partnership Incorporated chair Edward Duc told the Newcastle Herald after the June meeting the Newcastle Alliance had given Newcastle Now Partnership Incorporated the funds that were donated to Newcastle Independents candidates in 2021.
Cr Clausen said the Newcastle Alliance contributing the funds "raises even more questions about the lawfulness of these political donations in the lengths that were taken to hide their origins".
"Why did the Newcastle Alliance not donate directly to Cr Church and the Newcastle Independents candidates?" he asked.
Cr Clausen said the Independent Commission Against Corruption and Operation Spicer had identified previous sources of the Newcastle Alliance funding were associates of property developers.
He also questioned Cr Church's response saying he did not know Mr Duc was a member of the Newcastle Now Partnership until reading about it in the Newcastle Herald.
"That's extraordinary," Cr Clausen said. "Who did you provide your bank account details to or who did you receive the cheque from Cr Church?"
Cr Church called out Cr Clausen for "making allegations that are completely unsubstantiated by any facts or evidence".
"He is simply making stuff up," Cr Church said.
"I think what we're seeing here is a fairly immature and futile attempt at a political smear just weeks out from an election.
"I've answered truthfully and fully here tonight, and you've received my answers and I stand by them wholeheartedly.
"I deny any wrongdoing and I suggest to you that it's a little twee for you to be suddenly interested in 2024 about matters that happened in 2018.
"I think it's very, very sad that people see the quality of debate here in this place where one councillor would seek to just throw mud without any substantiation whatsoever in the hope of just diminishing a political rival.
"It's a real shame. I think the people of Newcastle expect us to do far more important work than this silly gotcha moment stuff."
Liberal councillor Jenny Barrie questioned why the matter was being tabled two months out from the election.
"It just seems reputational damage not only to the councillors who are barbing here but to the whole council," Cr Barrie said.
"I can't see why we can't just move on and leave this."
