When asked by Mr Tovey how this deal might be interpreted, Mr Woodman replied "as corruption, sir". The developer, however, denied the deal was corrupt and said he had paid Cr Aziz's tax bill "as goodwill" in return for support for Mr Woodman's charity. How do you recognise this conduct might be interpreted? Michael Tovey, QC As corruption, sir. John Woodman "I have not attempted or ever paid a person to make a decision that they otherwise wouldn't have made without that incentive," he said.

IBAC’s Operation Sandon is the most significant probe into alleged planning-related corruption in Victoria in decades with its examination of land deals in Melbourne’s rapidly growing south-east. At the centre of the inquiry is Mr Woodman and his links with local politicians and their roles in lucrative rezoning applications, worth potentially hundreds of millions of dollars. The close links were underscored by evidence of Mr Woodman describing, in private encrypted messages to his Liberal-linked lobbyist, that some Casey councillors were part of his "team" The financial returns on Mr Woodman's arrangement with Cr Aziz, which was described by the developer as a loan, approached 40 per cent. Mr Woodman said his experience in “unsecured mezzanine” financing had been that interest rates could reach 44 per cent. “So I thought at the time 30 per cent was not out of order”. The inquiry heard there were also negotiations for Mr Woodman to buy Cr Aziz’s house and for the councillor to live rent free in it.

Cr Aziz has insisted he has done nothing wrong and said there was no attempt to hide anything. Sam Aziz former mayor of the City of Casey Credit:James Taylor “I have never ever in my entire career of 35 years of public service received a bribe for anything, I would never expect it,” Cr Aziz told radio station 3AW. “I have acted in the best interests of my community. My record in terms of what has been delivered to the people in the City of Casey speaks for itself.” He also maintained there was “nothing unusual” about his decision to fly to the Middle East while the corruption watchdog investigates the scandal, saying he had a return ticket.

Mr Tovey, for IBAC, said on Wednesday the watchdog's investigators had also caught a secretary at Mr Woodman’s firm Watsons trying to smuggle out incriminating documents that detailed the arrangements between Cr Aziz and the firm. Mr Woodman denied a role in the attempt to smuggle out the documents. In another development on Wednesday it had emerged that Mr Woodman had agreed to buy 75 per cent of Cr Ablett’s rural property for $350,000. Mr Woodman said that he agreed to buy the interest in the farm after they started “pro bono” work on a boundary realignment. Costs for that work blew out, he said. Mr Woodman said he had already paid a deposit of $150,000 to Cr Ablett. Mr Woodman said he did not know what the property was valued at but that Cr Ablett had paid $250,000 for the entire property which includes a house. Mr Woodman only bought part of the land, not the house.

Earlier on Wednesday Mr Woodman admitted making $15,000 in disguised payments to pay off a credit card debt of Cr Ablett when he was a candidate for state parliament in 2014. Mr Woodman withdrew the money in two lots and then deposited it using an unsigned slip into Cr Ablett's credit card account, counsel assisting IBAC Michael Tovey, QC, said. Mr Tovey repeatedly asked Mr Woodman why he had structured the payment to disguise its origins and if the transaction was “corrupt”. Loading “He was about to be a candidate for the seat of Cranbourne and part of the candidacy was the financial stability of a candidate,” Mr Woodman said.

Mr Woodman said the payment was not corrupt and was a donation and a “correction to his credit card account”. Mr Povey drew links to the large amounts of money being funnelled to Cr Ablett and Cr Aziz by Mr Woodman’s companies and the progress of rezoning applications. The rezoning of Brompton Lodge, which began when former Liberal leader Matthew Guy was planning minister, resulted in huge profits for its owners. Also central to the inquiry has been the bid to rezone a large property owned by Leighton in Cranbourne West from industrial to residential which, if it had been successful, could have generated a $100 million windfall. Geoff Ablett had his credit card debts paid by John Woodman Credit:Gary Sissons

The council had opposed the rezoning in 2014 but backflipped and supported it the following year. The rezoning proposal is now with Planning Minister Richard Wynne. The inquiry on Wednesday focussed on the role of developers and business interests in funding and setting up of a “residents' group” to support the rezoning by Leighton, now known as CIMIC. Planning consultant Megan Schutz and Mr Woodman played key roles in creating the group and also worked together to pay tens of thousands of dollars to the head of the residents' group, Ray Walker, for a side arrangement to collect real estate data. It was an area where Mr Walker had no expertise. Mr Woodman said there was no public announcement that the residents' group was funded by developers or any disclosure to the planning minister, who was being lobbied by locals.

He said his experience was that a “majority” of residents groups are funded by landowners or developers. Mr Woodman also had to defend on Wednesday allegations that he used a fake name to deposit $5000 cash in Cr Ablett's bank account. Under questioning on Tuesday, Mr Woodman admitted the fake signature of G. Williams was in his handwriting. "Yes sir, I believe so." On Wednesday, Mr Woodman conceded the method of payment was wrong. "Obviously it was an error of judgment sir … I should not have done that." Mr Woodman has told the inquiry that he made donations to major parties and paid money to Labor and Liberal-linked lobbyists to gain favourable access for his own interests and his clients.

Loading Mr Woodman's close relationships with Casey councillors and the conflicts of interest were first revealed exclusively in The Sunday Age in October and November last year, including the proposed rezoning of land in Cranbourne West owned by Leighton, and council decisions favourable to Woodman-linked company Wolfdene, including at the Pavilion housing development and the construction of an intersection at Hall's Road in Cranbourne.