Scams which involve the conversion of public land nearly always exploit loopholes
in the law which allow the discretionary grant of land by a minister.
This is because the allocation of land by a single minister can tend to
be a form of patronage in which ministers grant land to local "helpers" who
tend to assist them in either campaign fundraising or electorate matters.
THE LEASEHOLD SCAM
1. A Government leasehold parcel is found and identified. These leaseholds on Crown land
can also be boathouses, jetties and even communications towers.
2. The parcel is gazetted and applied for in a company name. The company directors may
include individuals with a conflict of interest eg friend's of the minister.
3. The land deal is approved by the Lands Minister's direct discretionary approval instead
of through a Land Board or Forestry Authority.
4. The shelf company which holds the land awaits the title meanwhile a bank loan
is taken out to fund development.
5. Loans are drawn down, sometimes followed by the filing of bankruptcy by the paper
company.
6.The bank forecloses on land lease and tries to recuperate its losses. Sometimes the
land has already been cleared of any valuable timber.
7.The bank is left holding the land for many years sometimes a 50 or 99 year lease. The public has
now lost control of the land for this period of time.
