AN INQUIRY into Mount Barker's 1300-hectare rural rezoning confirms a conflict of interest as far back as 2008.
South Australian Ombudsman Richard Bingham's Investigation into the Growth Investigation Areas Report Procurement finds that Planning SA, now the Department of Planning, Transport & Infrastructure, did not identify a clear conflict of interest by awarding a consultancy role to Connor Holmes for its Growth Investigation Areas project.
At the time, Connor Holmes was also representing land developers "advocating expansion in the Mount Barker area".
"Both before and during the procurement, as well as at the time of being awarded the consultancy, Connor Holmes were making concerted representations to the Minister (MLC Paul Holloway) on behalf of five developers, the Mount Barker Consortium, to expand and rezone Mount Barker," Mr Bingham said.
"In my view, Connor Holmes were clearly conflicted between this role and their GIA consultancy role.
"Planning SA knew of these representations, but failed to identify Connor Holmes' conflict of interest during the procurement.
"This failure tainted the probity of the procurement process."
Mr Bingham said no consideration was given to conflict of interest disclosure made by seven of eight consultants who provided capability statements during the procurement process, including Connor Holmes.
This failure was the subject of debate in the Legislative Council and media, and left the Mount Barker community feeling "understandably suspicious" of the process.
Connor Holmes was subsequently requested to "fast track" an analysis of Mount Barker as a growth investigation area by December, 2008, so that a Ministerial Development Plan Amendment could be initiated before the end of 2008.
"Government agencies must be vigilant about the probity of potential consultants during their procurement processes, in particular in relation to conflict of interest," Mr Bingham said.
"I commend the New South Wales Independent Commission Against Corruption publication Developing a Statement of Business Ethics as a guide."
District Council of Mount Barker mayor Ann Ferguson said the findings were "cold comfort" for the local community and would have come as no surprise.
It was now important that the government committed to providing infrastructure and services to support the development.
"The flawed Mount Barker process should provide a great case-study for the Expert Panel on Planning Reform recently established by the Government," Ms Ferguson said.
The government rezoned the area in 2010.
It is expected to result in about 10,000 new residential allotments that will provide for 26,000 people.
Some land transactions have already occurred and development applications have been approved by the government. The most significant of these is an application from the Walker Corporation for more than 500 new allotments.
Mr Rau did not answer questions about the Ombudsman report but instead said he would be making a statement "regarding these matters in the near future".
*Full report in Stock Journal, March 14 issue, 2013.
