A multi-million dollar deal between Brisbane City Council and developer Mirvac is to be investigated by the Queensland misconduct watchdog.
Brisbane Lord Mayor Graham Quirk on Wednesday referred the Tennyson riverside park deal to the Crime and Misconduct Commission (CMC).
It comes after a Seven Network investigation found the council agreed to spend $15 million on the new park before the land was independently valued.
The council and Mirvac established a memorandum of understanding to purchase the block of land – which was flooded in January 2011- in May before receiving a valuation in June, documents submitted in evidence to the Floods Commission of Inquiry showed.
Under the memorandum, the council agreed to pay Mirvac $15 million.
This included $6 million for the land and $9 million for the construction of the park, but a June 19 valuation report found the land alone had a pre-flood valuation of $9 million.
Documents showed the terms of the final deal were then changed so council would pay $9 million for the land and $6 million for the park.
“As a result of the claims made by Channel Seven regarding council’s purchase of the Tennyson Reach parkland, I was obliged to refer the issue today to the CMC,” Mr Quirk said in a statement on Wednesday.
“While I have found no evidence of wrongdoing, I think it is important that an independent investigation is conducted and the air is cleared.”
Lord Mayoral candidate Ray Smith says Mr Quirk should stand down council’s planning chairperson while the CMC investigates the deal.
He said the matter raised serious questions about the integrity of Brisbane City Council’s administration.
“Residents deserve answers about exactly what type of dodgy deals with developers this council has been striking using their money,” Mr Smith said in a statement.
“Until we get some answers, the Lord Mayor should immediately stand down his Planning Chairperson, Councillor Amanda Cooper.
“Until this investigation is concluded, Brisbane residents will not have any confidence in the integrity of council’s planning and development decisions.”
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