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Council Planner 'had Sex, Accepted Money'

The Age

Tuesday February 19, 2008

Wendy Frew

A FORMER NSW town planner had sex with three local developers and accepted thousands of dollars in cash, housing renovations and holidays from them in return for approval of controversial developments.

Beth Morgan, who was sacked by Wollongong Council last year for "serious misconduct", took centre-stage yesterday at the opening of a corruption inquiry into planning decisions at the council.

The hearings will also examine an alleged sting by two convicted criminals who impersonated anti-corruption officers and netted at least $500,000 worth of bribes from a number of people named in the investigation.

Noel Hemmings, QC, assisting the Independent Commission Against Corruption, told the hearing in Sydney that the purpose of the inquiry was to determine whether anyone had engaged in corrupt conduct.

The hearing, which is examining the conduct of 14 people, was told Ms Morgan slept with developers while assessing their projects, while the council's former general manager, Rod Oxley, allegedly regularly interfered with planning staff's decisions.

Mr Hemmings said Ms Morgan was building a client base for a planning consultancy she intended to establish when she left Wollongong Council. She became a member of a group of town planners, developers and businessmen that met regularly at a local cafe.

Ms Morgan claims to have been sexually involved with developers Frank Vellar, Glen Tabak and Michael Kollaras. Mr Kollaras denies it.

The main relationship was with Mr Vellar, a major land developer in Wollongong who, with Ms Morgan's help, got approval for a $100 million commercial and residential building even though its height and scale were well out of proportion with council building regulations.

Ms Morgan told the hearing Mr Vellar ended their affair last Thursday because he was upset about the effect publicity was having on his children.

During their relationship, Mr Vellar gave her cash in bundles of $1000 or $2000 on about 10 occasions, the last payment, of $1000, on Friday, she said. "He gave me money to support me and look after me when I was in financial difficulties, not as a bribe or an inducement."

It will be alleged Ms Morgan, Mr Vellar and others were fooled into believing Ray Younan and Gerald Carroll were anti-corruption officers who, in return for cash, "could close the commission's investigation into them, destroy potentially incriminating evidence relating to them and/or ensure that they were cleared". Ms Morgan paid the two impostors $50,000 and Mr Vellar paid at least $100,000.

The hearing continues.

© 2008 The Age

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