The sole director of the company that was controversially approved to build the Loves Bay town houses in Kiama Heights was recently embroiled in an Independent Commission Against Corruption (ICAC) inquiry that found that the Mayor of Canada Bay Council engaged in serious corrupt conduct.

In 2022, Kiama Council narrowly approved a DA submitted by Forte Kiama Heights Development to build a row of four terraces on Elanora Road near Loves Bay. 

The house on the property will be demolished for four terrace houses

The DA faced fierce objection from nearby residents, who lodged 45 objections against the DA, seriously concerned that the terrace houses were being marketed to investors as a hotel-style development despite the area being zoned for as residential. 

In response to conerns raised by Councillor Kathy Rice during the 15 November 2022 about the DA, Kiama Council CEO Jane Stroud said that “We have to take a DA on its merits. There is an assumption that the information given in the application is correct. Should the nature and use change, then compliance will kick in.”

Residents' concerns were realised when in December 2022, Forte Sydney Property Group began describing the property as an “oceanfront hotel” in its marketing material. The project’s architect, Tony Owen said in response that “I called it that [a hotel] but it had nothing to do with whether it was real or not,” and that The Bugle was “reading far too much into it.”

Picture of construction fence at Loves Bay

Kiama Council at the time stated it would investigate the situation and would explore and enact any legal opportunity available.

In light of recent developments, Kiama Council said there was no legal justification or reason to review or revisit the DA.

On 9 November 2023, ICAC released the findings of its investigation of the conduct of the City of Canada Bay Council Mayor (Operation Tolosa). 

The investigation found that Canada Bay Mayor Angelo Tsirekas engaged in serious corrupt conduct by seeking and/or accepting benefits from property developer I-Prosperity Group in return for using his office to favour the company’s interests. These rewards included overseas flights and accommodation, to the value of at least $18,800.

One of the central figures in the investigation was former I-Prosperity Group Director Belinda Li, who is now the sole director of Forte Kiama Heights Development, the company approved to build the controversial terrace houses at Loves Bay.

ICAC reported that Ms Li purposely obstructed the investigation into I-Prosperity and was “inconsistent, unreliable and chaotic in her evidence,” and the evidence she presented could only be accepted when corroborated by objective, independent evidence. This evidence included confirming corrupt dealings between Mayor Tsirekas and I-Prosperity agent, Joseph Chidiac.

When asked whether the DA for the Kiama Heights development would be reviewed, a Kiama Council spokesperson told The Bugle:

“Council is unaware of any recommendations from the ICAC findings that relate to Development Applications lodged in any other Local Government Area by, or associated with the individual who was the subject of the investigations centred around Canada Bay. Therefore, Kiama Council has no legal justification or reason to review or revisit the Development Assessment or Determination of the approved townhouses.”

ICAC is currently seeking advice from the Director of Public Prosecutions on whether any prosecution should be initiated against Mayor Tsirekas and Joseph Chidiac.