A former Sydney councillor has told the anti-corruption watchdog he accepted bribes of $170,000 from a Chinese developer in exchange for his support of two major development proposals.
On Tuesday, the Independent Commission Against Corruption (ICAC) began its public hearings into the conduct of former Georges River councillors Constantine Hindi, Vincenzo Badalati and Philip Sansom as part of Operation Galley.
All three councillors served on Hurstville Council, before it merged with Kogarah Council to form Georges River Council in 2016.
They are alleged to have accepted benefits for helping Chinese developers get planning proposals approved for two major developments in Hurstville — the $29 million Treacy Street project (an 11-storey mixed-use apartment block) and the Landmark Square development (a complex of 19-storey residential buildings).
The projects were by developers Ching Wah (Philip) Uy, Wensheng Liu and Yuqing Liu and required councillors to make exceptions to the seven-storey building restriction in the area.
Former councillor Vincenzo Badalati told the inquiry on Tuesday Mr Uy gave him $70,000 for assisting with the Treacy Street project and another $100,000 for the Landmark Square development.
Mr Badalati detailed the day in 2015 when he met Mr Uy at a coffee shop in Kingsgrove and received $70,000 for the Treacy Street development, which he voted in favour of in 2014.
"He [Mr Uy] got a bag out and handed it to me and said 'thank you for your help on Treacy Street'," Mr Badalati told the inquiry.
"I saw the money when I got home. They were all bundled hundred-dollar notes. I put it in my safe. I told Constantine Hindi."
The other cash gift of $100,000 was handed over at a park in Rhodes in 2016 during a meeting between Mr Badalati, Mr Hindi and Mr Uy.
The money was intended to guarantee the councillors' favourable vote on the Landmark Square development.
"He [Mr Uy] opened his boot and gave us two bags each," Mr Badalati said.
"He said 'thank you for your assistance on Landmark'.
"Some went into the bank and some were spent."
Mr Badalati said he never mentioned the money to then fellow councillor Mr Sansom and doesn't know if he ever received similar payments.
Following this, Mr Badalati, Mr Hindi and Mr Sansom voted to pass the developer's voluntary planning agreement for the Landmark project during a controversial council meeting on April 20, 2016.
Their votes were against the recommendation of council staff.
Mr Badalati conceded to ICAC on Tuesday that he felt a sense of obligation because of the money Mr Uy had paid him.
The former councillor was also shown several pieces of evidence which showed how frequently he flew to Hong Kong and mainland China to attend meetings, dinners and on one occasion a karaoke night with the three developers.
The flight records also showed Mr Hindi had travelled to China regularly and both men sometimes brought their partners and families.
Mr Badalati confessed that "quite a few" of the meals and functions he and Mr Hindi enjoyed were paid for by the Chinese developers and sometimes their friends.
Ms Heger said the councillors flew to China on April 8, 2016, and attended a ceremony to sign documents with Wensheng Liu and Yuqing Liu during which Mr Badalati allegedly delivered a speech on stage.
Mr Badalati admitted he should have declared a conflict of interest prior to voting on applications by the developers and not doing so was a violation of the council's code of conduct.
