Government property boss faces inquiry into alleged mobster links
The Andrews government has ordered an investigation into the deputy chief of its own property development organisation over revelations that he promoted an alleged Mafia figure to a prominent business body.
A government spokeswoman confirmed late on Thursday that it had asked Development Victoria for an "independent assessment’’ of The Age’s weekend revelations about Liberal stalwart and agency deputy chair, Tony De Domenico.
An external company is likely to be called in to conduct the inquiry.
News of the probe comes two days after the Mr De Domenico informed Development Victoria of his intention to resign as deputy chairman. Discussions were held with Mr De Domenico following an emergency meeting of the Development Victoria board on Monday night.
However, late on Wednesday night Mr De Domenico emailed journalists to announce he would not be resigning after all, and that he was seeking the legal advice "in relation to these unsubstantiated and abhorrent allegations’’.
The Saturday Age revealed how in October Mr De Domenico used his position as president of the Italian Chamber of Commerce and Industry to make alleged Calabrian Mafia boss Tony Madafferi a chamber member representing his green grocery chain, Market Europa.
The membership move prompted the intervention of the Italian embassy, after which Mr Madafferi's membership was withdrawn.
It also came just weeks after Opposition Leader Matthew Guy was enveloped in a public scandal over revelations he had met Mr Madafferi at a lobster restaurant in April 2017.
In his former role as planning minister in the Baillieu-Napthine government, Mr Guy appointed Mr De Domenico to a three-year stint as chair of the state's property development agency Places Victoria (now Development Victoria) in 2014.
The Andrews government re-appointed Mr De Domenico as deputy chairman in 2017.
In his statement to The Age, Mr De Domenico appears to acknowledge for the first time that the chamber of commerce had approved membership for one of Mr Madafferi’s companies.
However, he says the membership application was "considered in the same manner as other applications, according to usual procedures’’.
"I have no connection, either personal or professional, with Mr Madafferi or any of his companies,’’ says Mr De Domenic in his statement.
"The stories in the Age inferring my personal or professional support for Mr Madafferi, his companies, or his membership of the Italian Chamber of Commerce are unsourced, defamatory and incorrect.’’
However, documents reveal that Mr De Domenico personally nominated Market Europa for corporate membership of the Italian chamber.
Confidential chamber documents show a resolution in which the chamber accepted, as a group, 10 new members. The following resolution shows Mr De Domenico then "handed up a duly filled up application" seeking membership for "Europa Market [sic], run by T. Madafferi".
The documents show that the following month, the proposed membership was withdrawn.
Mr De Domenico is a former Liberal ACT deputy chief minister and more recently the head of the Victorian branch of the private sector development lobby, the Urban Development Institute of Australia.
He is, and has been, a member of a slew of semi-government boards and was formerly a deputy chancellor of La Trobe University. Last night his future in other state-endorsed roles was unclear.
Mr De Domenico is also the chair of the Australian Housing and Urban Research Institute (AHURI). He was appointed by Treasurer Scott Morrison is his former role as housing minister. On Monday, Mr Morrison backed Mr De Domenico as AHURI chair.
Mr De Domenico was, until last month, also the chairman of the Italian Chamber of Commerce and Industry, a committee part funded by the Italian government. After eight years as chamber chairman, he was voted off the board in March partly, The Age understands, because of concerns over his support for Mr Madafferi.
In an affidavit filed in court in June 2017 in support of Mr Madafferi's ban from Crown casino and race tracks, police Detective Superintendent Peter Brigham said the police held "substantial intelligence" indicating Mr Madafferi had "substantial and close involvement with serious criminal conduct including drug importation, murder and extortion".
Mr Madafferi has never been charged with any crime and denies any wrongdoing.
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