What was Costagate?

Frank Costa

‘Costagate’ refers to an episode in which a number of candidates in the November 2004 Geelong council elections received funding from six Geelong businessmen and developer Lascorp. Under Section 81 of the Victorian Local Government Act 1989 a Councillor ‘…must disclose … particulars of any gift of or above the amount or value of $500 received by him or her from a person other than a person related to him or her by blood or marriage…’ A number of candidates were thought to have breached the Local Government Act.

The name ‘Costagate’ refers to the involvement of Frank Costa (pictured right), head of the Costa Group and then President of the Geelong Football Club. The term is a piece of journalistic hyperbole whereby Costa’s surname was appended with the suffix ‘-gate’. The allusion to the Watergate affair conveys the idea that the parties involved engaged in gross misconduct.

The Geelong businessmen and their donations

The businessmen who contributed to the fund included:
Frank Costa, Costa Group, $10,000
Robert Harris, Development Manager, Lascorp Development Group, $21,269
Stewart Harrison, Eureka Sports Saloon, $10,000
Robert Riordan, United Retail Group, $5,000
Lino Bisinella, Bisinella Developments, $10,000
Glynn Harvey, Fruit and Vegetable Wholesaler, $10,000
Sean Blood, Blood Toyota, $5,000

The money was delivered to Cr David Saunderson, who managed the fund. The donors stipulated that the money be spent on electoral campaign support. During the campaign Councillor Saunderson requested that Mr Costa provide more funds, to which Costa responded that no more money would be forthcoming. Harrison, Bisinella, Harvey and Blood did not know who was to receive the money. Riordan knew who three of the recipients were [1].

Who received how much

Twelve Councillors were elected in November 2004, including Barbara Abley (Brownbill), Tony Ansett (Windermere), Lou Brazier (Corio), Shane Dowling (Deakin), Jan Farrell (Beangala), Bruce Harwood (Kardinia), Strechko Kontelj (Kildare), Rod Macdonald (Cheetham), Peter McMullin (Buckley), John Mitchell (Austin), Tom O’Connor (Austin), David Saunderson (Cowie). Funds were received by the following:

Newly-elected councillors

Lou Brazier, $6,257 (Oct. 2004)
Tom O’Connor, $5,302 (Nov. 2004)
Peter McMullin, $5,000 (funds ‘promptly’ reimbursed)

Re-elected councillors

Tony Ansett, $441 (below level requiring disclosure)
Bruce Harwood, $221 (below level requiring disclosure)
David Saunderson, $5,649 including $2,968 from Lascorp and $536 from each of four Geelong businessmen.

Whelan 2006, Report on Investigation into Greater Geelong City Council

Under the Local Government Act, newly elected councillors are not required to disclose campaign donations because they are not yet councillors.

Whelan’s recommendation

After prolonged coverage by The Geelong Advertiser, in 2006 the Inspector of Municipal Administration, Merv Whelan, conducted a report into possible breaches of the Local Government Act. Whelan recommended that his report

…be referred to Local Government Victoria to take appropriate action regarding Cr Saunderson’s failure to disclose in his ordinary return lodged on 21 July 2005 for the return period to 20 June 2005, gifts in the form of election campaign support received by him from Lascorp Developments $2,967.68, Frank Costa $536.33, Lino Bisinella $536.33, Stewart Harrison $536.34 and Glynn Harvey $536.34.