Brisbane council cleared over land deal

Queensland's corruption watchdog will take no action after investigating allegations of an improper land sale by the Brisbane City Council to a Liberal National Party (LNP) donor.

In April last year, East Coast Car Rental owner and LNP donor Boon Tan approached the council about buying the land, which was next to his car yard in Nundah.

Crime and Corruption Commission (CCC) investigators found Mr Tan's first offer was rejected by the council CEO but a revised offer, in July 2015, was accepted subject to Civic Cabinet approval.

At a meeting in August, a recommendation for cabinet to approve the offer was made and the transaction was approved, but it still required state government exemption from the usual requirement for the land to be offered for sale by public tender or auction.

"There was no discussion at the Civic Cabinet meeting that Mr Tan was a donor to the LNP nor did any of the members of the Civic Cabinet inform the meeting they had a conflict of interest in the matter to be discussed," the CCC said in a statement.

A 2011 amendment to the City of Brisbane Act removed the criminal offence of failing to declare a conflict of interest.

The CCC found there were valid reasons, other than Mr Tan being an LNP donor, to support the recommendations to the state government.

For that reason, the CCC believed any prospect of proving a criminal offence was too remote to pursue.

The watchdog will take no action, but it said the matter did highlight how "certain practices in local government may give rise to perceptions or allegations of corruption".

It issued a reminder to public and elected officials about the importance of transparency and accountability.

"It is the CCC's view that allegations such as these may have been avoided by open and transparent declarations of all known interests in or related to a matter for decision."

The CCC investigation came in the lead-up to local government elections on Saturday.

The state government, which only rejected the exemption request in the last month, has faced allegations it deliberately delayed the decision so as to interfere with the LNP's election campaign.

Local government minister Jackie Trad denied any involvement in having the matter referred to the watchdog.