OZschwitz: Corrupt Auburn Council pouring millions into developer's pocket

A PROPERTY developer who is a big donor to the Labor Party ended up with a windfall of up to $7.6 million at the expense of Auburn Council ratepayers, according to a confidential draft government report.

Sarkis Nassif, the developer of the controversial shopping and residential complex Auburn Central, bought council land at a bargain price, was allowed interest-free instalment payments and gained a substantial increase in the floor-space ratio after the development application had been processed.

Despite obtaining two valuations ranging from $7 million to $9.4 million for its Queen Street land, Auburn Council sold it to Mr Nassif for $1.8 million in 2002.

"This resulted in a loss of public funds from this sale" of at least $5.19 million, an investigation into the Auburn Central development has found.

The findings are contained in a confidential draft report by Paul Terrett, a senior investigations officer with the Department of Local Government. The report has not been made public.

Three years after completion, Auburn Central has numerous structural defects, including chunks of concrete falling from buildings and cracks in the walls. Water is leaking from some apartments into the shops below. The outdoor lights are not working. Some occupants have illegally transformed one-bedroom units into eight bedrooms.

The NSW Fire Brigades has expressed grave concerns for the safety of residents. Chief Superintendent Chris Jurgeit is quoted in the confidential report as saying Auburn Central was "the worst building he had seen in his 20 years with the NSWFB".

Mr Terrett's report says Auburn Council "failed to responsibly manage public assets" and may give rise to councillors being sued for negligence or misconduct.

Mr Terrett found that half the crucial documents relating to the development were missing from council files.

Council staff have said the development was "political", the report says, and there was pressure to push it through.

Mr Terrett agreed with earlier findings by Robert Edwards, who prepared a probity report on Auburn Central in 2005. "There is no doubt whatsoever that council provided the developer - both directly and indirectly - with significant financial and other assistance to achieve council's aim of having the development proceed to fruition," said Mr Edwards, a local government auditor.

"Taken as a totality, the monetary value of the apparent 'concessions' to the developer - in addition to other possible concessions not addressed by this review - stretch credulity."

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