Liberal Leader Alistair Coe has disclosed his wife's family's friendship and business links to the principal of Colliers International in Canberra, in another twist to the inquiry into the Land Development Agency's deals at Glebe Park and the lakefront.
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As a parliamentary inquiry into the land deals began, committee member Mr Coe declared his family connections to the head of Colliers in Canberra and released advice he has received from the ACT parliament's ethics adviser about the links.
Colliers International is one of the key valuers named in Auditor-General Maxine Cooper's report into the 2015 land purchases.
The firm provided the advice used by the Land Development Agency to justify paying $3.8 million for Glebe Park land. It provided a value for Pat Seears' paddle-boat lease of $438,000, plus compensation of $500,000, figures that Dr Cooper said lacked evidence, methodology and justification. Mr Seears was paid $1 million.
The Colliers principal was also involved in an informal mentoring arrangement for the former deputy chief executive of the Land Development Agency, meeting him twice a month to mentor him on the property sector.
Dr Cooper also reported on "manipulated" valuation advice, after Mr Coe made a freedom of information request for the Glebe Park valuations in 2015. When the agency was looking for documents to satisfy Mr Coe's request, the principal of Colliers sent the agency a copy of Colliers' advice, offering, "If you want it changed to say valuation advice I can change its title." The title was duly changed.
Now, Mr Coe has detailed links between his wife's family and the Colliers principal.
The Colliers principal and his father-in-law bought a property in Queanbeyan some years ago, with Mr Coe's father-in-law operating a business from the building. The business is closed, but the pair still own the property and have had, and might still have, other property and investment dealings together, according to information Mr Coe provided to ethics advisor Stephen Skehill.
Mr Coe's parents-in-law are friends with the family of the Colliers principal, and as a result the principal attended his wedding in 2013. Mr Coe's brother-in-law works for Colliers International, and arranged for Colliers to buy hampers from Mr Coe's wife's business to use for new apartments last year.
Mr Coe sought the advice of Mr Skehill on how he should deal with those connections and whether he could remain involved with the inquiry, given the relationship between Colliers and the Land Development Agency will be one of the many issues investigated.
Mr Coe was the person who originally referred the land deals to the auditor in 2015, sparking the investigation, after he received information from informants.
Mr Coe also referred the alleged manipulation of the valuation document to police late in October 2016, and believes the police are still investigating.
In his advice, Mr Skehill told Mr Coe that it was not necessary to stand aside from the inquiry, but he should disclose the relationships to the inquiry upfront.
Mr Skehill said while he had no actual conflict of interest, an observer might suspect that his family relationships with the Colliers principal, and a desire to minimise personal difficulties between the Colliers principal and his wife's family, "might tend to influence you in your assessment of the report and lead you to take a view of Colliers International or the principal that is more favourable than that which you might otherwise reach".
The more direct commercial relationship through the purchase of hampers from his wife could lead to the same conclusion, Mr Skehill said.
But, if Mr Coe disclosed the relationships early, it would be unreasonable for him to have to step aside, Mr Skehill said.
"This is because the [audit] report is predominantly concerned with the propriety of action by officers of the LDA rather than by Colliers International or its principal, and because ... you will have no unilateral decision-making power in relation to the matters discussed."
Mr Coe has pursued the land deals relentlessly inside and outside the Assembly and pushed also for an inquiry to be set up.
He said he had sought advice to maintain openness and honesty.
"I wanted to take every possible step to ensure transparency and accountability," he said. "By seeking advice from the ethics and integrity advisor I am demonstrating an unprecedented level of transparency ...
"I am totally committed to pursuing these issues because I care deeply about the integrity of local government process."
