How Salim Mehajer's family lost $10 million in an hour
Suspended western Sydney deputy mayor, Salim Mehajer, and his family have potentially lost over $10 million within half an hour on Wednesday night after changes benefiting his family's property holdings were overturned.
Earlier this month, NSW Local Government Minister, Paul Toole suspended all councillors including Cr Mehajer over conflict of interests concerns and allegations some members were using their position for financial gain, the Sydney Morning Herald reports.
Former general manager of Mosman Council, Viv May, is now in charge of Auburn Council and has since reversed two controversial planning decisions that could have earned millions for Mr Mehajer and his family.
The council did this by turning their attention to the sale of public land to Cr Mehajer at Lidcombe's John Street.
Mr May first overturned a decision in December to sell a council-owned carpark to a Mehajer-owned company for millions below market value, which he was going to turn into a 96-unit complex, according to reports.
Cr Mehajer had council votes to sell the land for $8.5 million, despite receiving an appraisal that valued the land at least $5 million higher.
Each unit was estimated to be worth over $100,000, a project which would have earned the family a profit of more than $10 million.
Councillors claimed to have failed to spot the second appraisal that was hidden at the back of business papers provided to them before they voted to sell at a lower price, according to reports.
The second application Mr May overturned, was Cr Mehajer's decision to rezone a section on the eastern side of Auburn Rd between Beatrice and Helena Streets, to allow commercial and residential development of up to 12 storeys, ABC News reported.
This decision was known as the South Auburn Planning Proposal.
Cr Mehajer's sister, Khadijeh, owned a video store on that block which was recently fire-damaged.
The proposal was expected double the shop's value, which was bought for $800,000 in 2011.
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Suspended councillor, George Campbell, said it was a shame members of the council needed to be suspended to be able to have "good quality, honest and decent" decisions made.
"The administrator was correct to rescind two very dodgy decisions which gave gifts on behalf of the ratepayers to Salim Mehajer," Mr Campbell said.
He said Cr Mehajer only had himself to blame because he brought the council down and he was happy to see the mess is being cleaned up.
"I suspect that the office of local government is under-resourced and they should have been onto this a long time ago, years ago," Mr Campbell said.
'The administrator was correct to rescind two very dodgy decisions which gave gifts on behalf of the ratepayers to Salim Mehajer."
"I'm glad to see the place getting cleaned up, whether I'm on the inside or the outside."
It has not been a good few weeks for Australia’s most famous former local councillor who sky-rocketed to fame last year after his lavish wedding to partner, Aysha, caught widespread attention.
Just last month, Cr Mehajer was suspended from office for four months after he failed to disclose his financial interests less than a month ago.
The Civil and Administrative Tribunal made the decision after a report found the property developer had failed to disclose a pecuniary interest on three occasions.
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