Secret phone taps captured expletive-laden conversations between a crooked mayor, political powerbrokers and councillors during the controversial ousting of a whistleblowing bureaucrat, court documents allege.
"Bitch with the glasses" and "Well f***en get on the team, bitch" were among comments picked up by corruption investigators probing Logan City Council, south of Brisbane, according to the court documents.
Powerbrokers were also allegedly recorded on phone intercepts discussing numbers or strategies in sacking then-Logan chief executive Sharon Kelsey.
Her firing would become a flashpoint in the Crime and Corruption Commission (CCC) investigation into the south-east Queensland council.
Logan mayor Luke Smith was ultimately convicted of receiving secret commissions from a developer, but unrelated charges against other councillors over Ms Kelsey's sacking backfired.
The alleged recordings have never been reported before.
They are revealed in a Supreme Court lawsuit against the State of Queenslandfrom former councillors, who allege they were wrongly and maliciously charged with fraud for voting to fire Ms Kelsey in 2018.
They maintain they sacked Ms Kelsey over genuine performance concerns and not, as the charges alleged, dishonestly for her whistleblowing complaint against the then-mayor.
Those charges were sensationally dropped by prosecutors during committal proceedings because of insufficient evidence.
The fizzled charges were pivotal in muzzling the once high-profile CCC, sparking a 2021 parliamentary inquirywhich criticised the watchdog’s actions, including in bringing the case.
An employment case brought by Ms Kelsey was dismissed in 2021; the Queensland Industrial Relations Commission (QIRC) rejected her claim her probation had not been extended because of her complaint.
Now the state's defence to the councillors' lawsuit argues the phone-tap evidence partly helps explain why councillors were charged in the CCC case.
There is no suggestion those councillors or powerbrokers knew then-mayor Smith had engaged in any wrongdoing.
But in 2023, Smith pleaded guilty to charges including corruptly receiving a speedboat from a developer and interfering in a woman's appointment to a council job.
Ms Kelsey's whistleblowing complaint had included concerns about that appointment.
The CEO
Ms Kelsey became Logan’s chief executive in June 2017 with a six-month probationary period.
By September, she introduced herself toCCC chairman Alan MacSporran. She also took separate legal advice that month about her concerns about the mayor, according to parliamentary submissions.
According to the councillors’ claim, concerns about her performance were raised at an October probation review with the mayoral cabinet.
The state's defence alleges Smith knew at the time Ms Kelsey had met with the CCC.
Two days later Ms Kelsey lodged a whistleblowing complaint with the CCC alleging misconduct by the mayor and suggesting the probationary meeting was in retaliation.
In the ensuing turbulent months, Ms Kelsey unsuccessfully went to the QIRC about her crumbling position at council.
The events of the next few months lie at the centre of the court spat. The councillors say the evidence shows they acted due to genuine concerns about Ms Kelsey’s performance.
The state argues the evidence available to investigators, including WhatsApp messages and intercepted calls, gave them reasonable and probable cause to bring the charges.
According to the court documents, some councillors, including Smith, were in a WhatsApp group where they called themselves "Team Awesome" or "Fab 7".
The state alleges a phone tap taken one evening in January 2018 captured then-deputy mayor Cherie Dalley talking to Smith about an upcoming vote about firing Ms Kelsey.
"Mate, the numbers are on the floor," Ms Dalley allegedly said.
'Let's get rid' of her, recording claims
According to the state's defence, one evening at the end of January 2018, Smith was talking to mentor Jim Soorley, Brisbane's former lord mayor turned ALP powerbroker.
"Mr Soorley said words to the effect … of 'Let's get rid of' Ms Kelsey, including with profanities about Ms Kelsey," the state's defence alleged.
Smith allegedly spoke with nine people within just three hours. Court documents do not set out the full content of the discussions but at one stage Smith allegedly told a councillor: "Blame that bitch with the glasses, not me."
Smith also allegedly spoke to councillor Russell Lutton, who recalled an earlier conversation about teamwork with Ms Kelsey.
"Well f***en get on the team, bitch. Or the selectors might drop ya'," Mr Lutton is allegedly heard telling Smith.
Mr Lutton and other councillors either declined ABC interview requests or could not be reached.
But their lawsuit said comments such as Mr Lutton's "must be seen in the context of the significant pressure being brought to bear" on the councillors at the time.
The comments were not attempting to influence voting but were made when people's views had "earlier been expressed", their lawsuit said.
It said no statement from Mr Lutton could "reasonably be inferred" as him having acted for any reasons besides "the interests of Logan City".
The QIRC had on February 1, 2018 restrained Smith from partaking in an upcoming council resolution about Ms Kelsey's sacking, court documents said.
That same day, Smith allegedly told Mr Soorley a majority seven councillors would vote to sack her, and he had organised security to escort her out.
The sacking
According to the defence, on February 5, 2018, the CCC wrote to councillors that reprisals against people for making a whistleblower complaint were illegal.
That triggered Ms Dalley to seek reassurance in an email to Greg Hallam, then the Local Government Association of Queensland's (LGAQ) powerful chief executive.
The documents say Mr Hallam replied that evening that councillors could stick with lawyers' advice and vote "for the right reasons without legal recrimination". His organisation would "back you all the way to the gates of hell".
He also blasted the CCC's letter to councillors as "intimidation".
About 10 minutes after sending the email, Mr Hallam was allegedly recorded on the phone to Smith talking about Ms Kelsey's sacking.
"I just hope your guys don't go to water," Mr Hallam allegedly told Smith.
Smith allegedly said seven votes would be against Ms Kelsey and five in favour.
Mr Hallam allegedly said: "You reckon they'll hold, you're sure?"
Smith allegedly replied: "Seven, five, yep."
The next day, Ms Dalley allegedly wrote to the WhatsApp group to say she still believed they were “acting in the best interests of our great city”.
Ms Kelsey was axed one day later. Seven councillors voted to oust her, as Smith had allegedly said earlier.
The arrest
In 2019, the councillors were charged with fraud over the vote. They were fingerprinted, had DNA swabs taken, and lost their jobs.
They maintained their innocence.
Their lawsuit argues the evidence was insufficient to lead "prudent investigators" to conclude they were probably guilty, and that there were exonerating factors.
Two years later, the industrial commission dismissed Ms Kelsey's claims her whistleblowing complaint was behind her sacking and criticised her evidence.
The councillors had alleged they held other concerns about Ms Kelsey's performance, including micromanaging, and that she had not acted apolitically by joining rival councillors for a fun run.
Weeks later, during a committal hearing, prosecutors dropped the criminal charges.
Parliamentary battle
The LGAQ demanded an inquiry, saying the CCC had wrongly intervened in an employment dispute.
"There's been an extraordinary travesty of justice," Mr Hallam said at the time.
A parliamentary inquiry found the CCC had exceeded its powers, and the criminal charges were "affected by a desire to assist Ms Kelsey".
But the CCC's Mr MacSporran in that inquiry also said he had broader concerns about influence on local government.
He cited telephone intercepts, the contents of which were not yet public, and WhatsApp messages indicating "a concerted campaign or network, if you like, supported by Mr Hallam and Mr Soorley to effect that outcome not only in Logan but had tentacles right across the local government sector".
Neither Mr Soorley nor Mr Hallam have been accused of any wrongdoing.
Mr MacSporran resigned after the inquiry's criticisms, including that he had failed to ensure the watchdog acted impartially.
Mr Hallam left LGAQ in 2021 and was appointed last December to deputy chairman of state-backed WorkCover, which oversees workers' compensation insurance.
"Congratulations on your appointment," Deputy Premier Jarrod Bleijie wrote in a letter obtained under right to information laws.
Mr Bleijie's office did not answer questions about the CCC criticisms but instead highlighted Mr Hallam's decorations and long public service.
"Mr Hallam's experience and leadership is a great asset," Mr Bleijie's office said.
Mr Hallam told the ABC the CCC's actions had been an abuse of process and backed his conversations with Smith.
Mr Hallam added the LGAQ's role was to represent the thinking of councils, reflected by the majority of councillors, and he acted on legal advice.
"I'll never apologise for fighting hard where I was legally required to," he said.
He also rejected that the LGAQ's actions were wrong given Ms Kelsey's whistleblowing disclosure included a complaint about Smith, which ultimately was proven correct.
"We're not God. We can only [act] with the information before us," he said.
Mr Hallam also said he had no idea about Mr MacSporran's claims about his alleged involvement in a "concerted campaign" with local government. Mr Soorley did not respond to queries.
'Disgusting language'
Ms Kelsey told the ABC she was disgusted by the language used to describe her in alleged conversations involving Smith.
Smith got no time behind bars despite pleading guilty to corruption and job interference offences, instead receiving a suspended 18-month jail sentence.
The former councillors, Ms Dalley, Jennifer Breene, Mr Lutton, Phil Pidgeon, Trevina Schwarz, Laurie Smith and Stephen Swenson, are suing for more than$23 million in damages. The claim includes lost income and mental injuries.
The state's defence maintained reasonable grounds existed in evidence for an "inference of dishonesty" against the former councillors and their evidence in the industrial commission about Ms Kelsey was "untrue".
The CCC declined to comment.
The recordings have been kept under wraps previously; Mr MacSporran was gagged during the parliamentary inquiry when reading aloud some taps, while the ABC's right to information requests for them were rejected.
