Prosecutors will consider laying criminal charges after a corruption inquiry exposed dodgy political donations of more than $1 million to influence local councillors and Victorian MPs.
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The Victorian government has also flagged it will move to strip councils of planning approval powers following the release of a report into the City of Casey and property developers in Melbourne's southeast on Thursday.
The Independent Broad-based Anti-corruption Commission investigation centred on four planning proposals involving John Woodman and his clients, including one to rezone land in Cranbourne West as residential to increase its value.
Casey councillors Sameh Aziz and Geoff Ablett accepted almost $1.2m in payments and in-kind support for promoting Mr Woodman's interests.
The pair repeatedly failed to declare conflicts of interest and continued trying to influence other councillors even when they did, the Operation Sandon report said.
Beyond the council, Mr Woodman donated more than $470,000 to the Labor and Liberal parties between 2010 and 2019 to access state decision-makers and to the election campaigns of three Labor MPs.
Acting commissioner Stephen Farrow said the evidence collected during IBAC's investigation would be sent to prosecutors for criminal consideration.
"Where we have evidence that may constitute a criminal offence, we provide that to the Office of Public Prosecutions," he told reporters.
Mr Farrow said the inquiry exposed significant weaknesses in the planning system, with conflicted councillors easily able to manipulate the process, while developers and consultants could buy access to political decision-makers.
Mr Woodman has fought the report's release through the courts since March 2022, including a failed appeal on Monday.
In his official response, he declared there was no evidence his work as a consultant was to improperly influence and claimed he did not rely on the support of Mr Aziz and Mr Ablett.
The Labor and Liberal parties agreed to accept membership payments in instalments from different accounts or entities to allow Mr Woodman not to federally declare the contributions.
Between $10,000 and $27,000 was donated to each of the election campaigns for Labor's former Cranbourne MP Jude Perera, his successor Pauline Richards and Narre Warren MP Judith Graley.
The watchdog ruled Mr Woodman successfully lobbied two MPs he donated to, but Ms Richards was singled out with an adverse comment.
There was no evidence Ms Richards approached then-planning minister Richard Wynne or his office before he rejected the Cranbourne West land rezoning proposal in 2020.
Ms Richards admitted she could have been more circumspect in accepting Mr Woodman's "generous offer", but denied furthering his interests, which IBAC accepted.
No adverse findings were made against Mr Wynne, Treasurer Tim Pallas or Premier Daniel Andrews, among other ministers and MPs.
But the report detailed several representations made to Mr Andrews, including a 2017 lunch with Mr Woodman and others after a winning bid of more than $10,000 at a political fundraiser.
The 308-page report did not name former City of Casey mayor Amanda Stapledon, who did not provide a response before dying by suicide in 2020.
Thirty-four recommendations were made by the watchdog, including stripping councils of statutory planning responsibilities and a possible political donations ban on high-risk groups such as property developers.
Mr Andrews said the Victorian government would consider each of the recommendations but its stance was the role of councils in significant planning decisions should be reduced.
"What went on at the City of Casey was completely unacceptable and the government sacked the Council in 2020," he said.
"However, it is clear from the report that more work must be done."
Victorian Opposition Leader John Pesutto said planning powers should not be taken from councils and handed to the government.
"You've got to be kidding - that is not the responsible way forward," he said.
"Planning reform cannot involve giving more power to a premier whose evidence was rejected by IBAC when it came down to key matters."
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