MAYOR Andrew Lee has been cleared by the South Australian Ombudsman of any wrongdoing following an investigation into his business dealings as part owner of Rymill Coonawarra.
Allegations surfaced last January that Mr Lee had used a taxpayer-funded business trip to China to conduct his own business negotiations.
It was alleged Mr Lee met with Gang Ye, a Chinese businessman who later became his partner in the purchase of Rymill Coonawarra, during a State Government funded Shandong Business Mission in April 2016.
While conceding Mr Lee had “walked a very fine ethical line”, the ombudsman found “no evidence” he had committed misconduct by using his mayoral position for personal benefit.
“Given the language and cultural differences involved, and perhaps an incomplete understanding of the history of the deal on the part of some observers, it is not difficult to see why some in Australia have finished that Mayor Lee’s business dealings in the winery sale were suspicious,” the ombudsman said in a report released yesterday.
“I advise the mayor that in the future he should examine and clarify any actions that may give rise to a perception that he is using his elected office for personal gain.”
The report stated Mr Lee had admitted to giving Mr Ye Gang his business card in Shandong and realised later “it was not right to do that” in the context of their other business dealings.
“It is clear from the evidence the signing of a Memorandum of Understanding (MoU) between Rymill Coonawarra and Mr Ye Gang in Shandong in April 2016 has aroused suspicions that Mayor Lee was using his mayoral position to conduct personal business,” the ombudsman said.
“The (MoU) document may be accurately characterised as an aspirational agreement which seeks to build stronger economic ties between Shandong and the Coonawarra wine region through Rymill Coonawarra winery.
“I consider, on the information available to me, there is no evidence to finish the signing of the MoU constitutes misconduct on the part of Mayor Lee.
“I understand Mayor Lee made two earlier trips to China, in November and December 2015, at his own expense to meet with Mr Ye Cheng to talk specifically about acquiring the Rymill winery.”
Mr Lee was also cleared of allegedly using his mayoral position to gain personal benefit by acquiring shares in the winery.
The ombudsman finished Mr Lee’s ability to speak Mandarin likely led to him becoming an intermediary for Mr Ye in acquiring the winery, rather than his position as a public officer.
“Mayor Lee maintains that his 5pc share in the winery is not a gift, but payment for the valuable consideration he provided in brokering the deal,” the ombudsman said.
“Mayor Lee has stated that he entered into a ‘gentleman’s agreement’ about his remuneration for brokering the (yet to be finished) winery sale deal with Mr Ye Cheng at a meeting in Melbourne in November 2015.
“He says Mr Ye offered him either a fixed commission or a shareholder interest in the wine business and he chose the latter.”
Mr Lee declined to comment yesterday.
