St. Paul's Under Threat: Bankstown Council's Legacy of Dodgy Deals

St Paul’s: Dodgy Deals Threaten a Sacred Space in Bankstown

This is our fourth article in this series. The battle to save St Paul’s Anglican Church in Bankstown is no ordinary heritage dispute. Beneath the surface of this fight over bricks and mortar lies a tangled web of political intrigue, financial mismanagement, and conflicts of interest — a story that echoes a decade-old scandal involving the Bankstown Community College and some of the very same players now connected to the church’s fate.

The Church at the Crossroads

St Paul’s Anglican Church, a spiritual and historical landmark consecrated in 1968 and deeply embedded in Bankstown’s multicultural community, faces imminent demolition. The Anglican Diocese of Sydney has lodged a demolition application to clear the way for a 23-storey mixed-use development promising “100% affordable and social housing.” But as the community rallies to preserve this sacred space, serious questions arise about the true motivations behind the redevelopment and the integrity of those driving it.

A Troubling History: The Bankstown Community College Sale

To understand the stakes, we must rewind to 2016, when the Bankstown Community College — a struggling local institution with just 14 students and mounting debts — was sold under circumstances that raised eyebrows and sparked calls for urgent government intervention.

The college’s board included two powerful local Labor mayors: Khal Asfour (Bankstown) and Brian Robson (Canterbury). The sale of the college’s Chapel Road property was handled by LJ Hooker Bankstown, where Gizele Asfour, the mayor’s sister, was one of the real estate agents overseeing the auction. This glaring conflict of interest was just the tip of the iceberg.

Documents obtained by Fairfax Media revealed that the college had purchased the Summerland Lebanese restaurant beneath its premises for $1.11 million — a staggering $270,000 above the property’s valuation. This purchase was funded by a high-interest loan from board member Sam Pambris, who also held a caveat on the property. The college’s auditor had warned against the purchase, citing the institution’s “grim” financial outlook and limited cash reserves.

Despite these warnings, the board pressed ahead, plunging the college deeper into debt. When Pambris called in the loan in 2015, the college was forced to sell its only remaining asset — the Chapel Road building — to property developers, effectively ending over 30 years of community service.

Political Fallout and Allegations of Corruption

Labor MP Tania Mihailuk, representing Bankstown, publicly raised concerns about the sale’s conflicts of interest and governance failures. Her allegations included claims that the auction process was manipulated, with bidders being told to stand down to allow a “bigger deal” to proceed. Mihailuk’s outspoken criticism eventually led to her removal from the Labor shadow ministry in 2022, after she accused Khal Asfour of being a “tainted” candidate linked to corrupt figures.

The Independent Commission Against Corruption (ICAC) was reportedly referred the matter by Canterbury-Bankstown Council, but no formal investigation was launched. Meanwhile, lavish spending by Canterbury council officials, including frequent expensive lunches involving Mayor Robson and council general manager Jim Montague, further fueled suspicions of a cozy relationship between local government and property developers.

The St Paul’s Redevelopment: Déjà Vu?

Fast forward to 2025, and the same patterns appear to be repeating themselves. The Anglican Diocese claims it cannot afford to maintain St Paul’s, yet it proposes a multi-million dollar redevelopment promising “affordable housing” — a term that, by legal definition, seems questionable given the high market prices in Bankstown.

The demolition application was lodged before any formal approval of the redevelopment or evidence of construction funding was provided, raising concerns about transparency and due process. Community advocates and heritage experts have repeatedly called for the church to be preserved, citing its architectural, spiritual, and military significance — including the ashes of two priests and a war veteran interred on site.

Yet, the Diocese’s approach contrasts sharply with its handling of St Andrew’s Church in Lane Cove, where redevelopment plans retain the church building at the heart of the project. Why is St Paul’s being targeted for complete demolition despite its greater heritage value?

Who Benefits?

The involvement of controversial figures with histories of alleged misconduct and close ties to property development raises uncomfortable questions. The Diocese’s housing partner, Traders in Purple, has been linked to former NSW planning minister Tony Kelly, who faced misconduct charges. The appointment of former Education Minister Rob Stokes — who publicly advocates for church redevelopment as a housing solution — to Anglicare Sydney’s housing executive role adds another layer of political complexity.

Is the promise of affordable housing a genuine community benefit, or a convenient cover for lucrative property deals benefiting a select few? The community deserves transparency and accountability. Parishioners and advocates must ask: What values guide the Diocese’s partnerships? How do these relationships align with the church’s spiritual mission and ethical responsibilities?

Until these questions are answered openly and honestly, suspicion and distrust will continue to grow — threatening not only the future of St Paul’s but the very integrity of the Diocese itself.

Matthew Stewart: The Man at the Helm — A Controversial Tenure

No discussion of governance failures in Canterbury-Bankstown is complete without mentioning Matthew Stewart, the Chief Executive Officer (General Manager) of the council since the 2016 amalgamation, and previously GM of Bankstown Council since 2010.

Stewart has presided over the council during the entire period of the Bankstown Community College scandal, the St Paul’s heritage battle, and multiple other controversies. His leadership has been marked by:

Allegations of poor governance and lack of transparency.

ICAC Investigation: In 2024, the NSW Independent Commission Against Corruption announced a public inquiry (Operation Mantis) into conduct involving former council employees and contractors, a matter reported to ICAC by Stewart himself. While Stewart is not a subject of the investigation, the inquiry underscores ongoing governance challenges under his watch. The ICAC made 19 recommendations to Canterbury-Bankstown Council to prevent such conduct from recurring. Despite the seriousness of these findings and the extensive recommendations, there is significant community concern that these recommendations were not promptly brought to the attention of the council body, nor has the CEO's plan of action, submitted to ICAC, been made public to the elected council members or the residents. This lack of transparency has fuelled further distrust in Stewart's leadership, with many arguing that any other CEO would have been compelled to resign under such circumstances.

Close Ties to Controversial Figures: Stewart’s long tenure has coincided with close relationships between council officials and property developers, raising questions about conflicts of interest and undue influence.

Community Distrust: Many community members and activists view Stewart’s leadership as emblematic of a council “rotten to the core,” failing to protect heritage, community interests, and ethical standards.

In February 2023, the Standing Committee on State Development held a formal inquiry into allegations of impropriety against agents of the City of Canterbury Bankstown Council. The proceedings took place at the State Library of NSW in Sydney, chaired by The Hon. Aileen MacDonald and attended by several members of the committee, including The Hon. Scott Farlow, The Hon. Courtney Houssos, The Hon. Taylor Martin, The Hon. Chris Rath, and The Hon. Penny Sharpe. During this inquiry, Matthew Stewart, as CEO, was extensively questioned about governance failures, transparency, and the council’s handling of various controversies. The inquiry highlighted serious concerns about the council’s leadership and operational integrity under Stewart’s tenure, reinforcing public calls for accountability and reform.

Given these concerns, calls are growing louder for Stewart’s resignation or removal, alongside demands for a thorough overhaul of council leadership and governance structures.

Should the Canterbury-Bankstown Council Be Disbanded?

Given the history of governance failures, conflicts of interest, and allegations of corruption involving key council figures, many in the community are asking: Should the Canterbury-Bankstown Council be disbanded?

Arguments for disbanding include:

* A documented history of poor governance and conflicts of interest that have undermined public trust.
* Failure to protect heritage sites like St Paul’s despite expert advice and community opposition.
* Allegations of cozy relationships between council officials and property developers, raising concerns about corruption.
* The need to restore integrity and accountability in local government.
* Whatever the outcome, it is clear that the community demands transparency, accountability, and ethical governance — values that must be upheld to protect Bankstown’s heritage and future.

The Community’s Fight and the Call for Accountability

The people of Bankstown deserve answers. They deserve transparency, integrity, and respect for their heritage and faith.

As highlighted in our previous articles, legal precedent from the 1995 Brisbane Diocese case dictates that church property held in trust for a local congregation cannot be sold or repurposed unless its original use is demonstrably impossible. The onus is on the Diocese to prove this impossibility, not simply cite financial inconvenience or shifting priorities.

As demolition looms, community members, donors, and advocates are urged to object to the demolition application and demand that the Diocese seek directions from the NSW Supreme Court to clarify the trust’s terms.

What You Can Do

Perhaps it’s time to refer this matter to ICAC. The ongoing issues surrounding St Paul’s, coupled with the history of governance failures and questionable dealings within Bankstown Council, raise serious doubts about the council’s capacity to manage development decisions with integrity and transparency. While we do not possess conclusive evidence of corrupt conduct at this time, the convergence of these issues—including potential conflicts of interest, misuse of information, and questionable property dealings—aligns with the definitions of corrupt conduct under the Independent Commission Against Corruption Act 1988 (NSW). The Act empowers ICAC to investigate any conduct that may involve a breach of public trust, misuse of official information, or improper exercise of official functions. Given ICAC’s broad investigative powers, including compelling witnesses and obtaining documents, an inquiry could uncover whether any corrupt conduct has occurred and assess the council’s overall capacity to ensure ethical governance. We urge ICAC to exercise its mandate to uphold transparency, accountability, and integrity in public administration by thoroughly investigating these concerns.

Contact Canterbury-Bankstown Council to object to the demolition application (DA-438/2025) before the June 3 deadline, see instruction in our previous article.

Demand transparency from the Anglican Diocese of Sydney regarding funding, development plans, and conflicts of interest.

Support heritage and community groups fighting to preserve St Paul’s.

Share this investigation to raise awareness and hold decision-makers accountable.

In these challenging times, we turn to faith for strength and guidance. As the Psalmist declares,
“Righteousness and justice are the foundation of your throne; love and faithfulness go before you.” (Psalm 89:14)

May God’s light shine upon this sacred place and the halls of governance, exposing all shadows of deceit and corruption.
We pray that His angels guard St Paul’s, preserving its spirit and heritage for generations yet unborn.
For in the light of truth, corruption cannot stand.

With steadfast hearts and unwavering hope, we trust that justice will prevail, and this community’s sacred legacy will endure. Amen

Editor’s Note:
Following publication, it is acknowledged that an ICAC complaint has been filed concerning the redevelopment of St Paul’s Anglican Church, Bankstown. This complaint addresses allegations involving Canterbury-Bankstown Council, the Anglican Diocese of Sydney, Traders in Purple, and all related individuals and entities. The complaint has been reviewed and sighted by the editor.