The Crime and Corruption Commission (CCC) has recommended sweeping changes to state laws to hold local governments to account after it found a “significant” breaking of current laws in its long awaited Operation Belcarra report.

It found an opaque system that meant uneven competition between candidates who aren’t properly declaring their allegiances and are being propped up by unknown, wealthy donors.

Hidden relationships are further obscured by the use of third-parties to make donations and a “significant non-compliance with disclosure requirements”.

“There are perceptions of compromised council processes and decision-making, especially where councillors have received campaign funding from donors involved in the property and construction industries,” the report finds.

“These perceptions are compounded by the failure of many councillors to adequately deal with their conflicts of interest.”

Thirty-one recommendations have been made that include a total banning of donations from property developers, potential caps on campaign spending and real-time disclosure of expenditure during elections.

Candidates would also have to make known their current or past allegiances to political parties, other organisations and other candidates so people knew exactly what they were voting for.

It makes several recommendations to prevent councillors with real or perceived conflicts of interest from taking part in decision-making, with removal from office the penalty for those who don’t comply.

The operation examined the Gold Coast, Ipswich, Moreton Bay and Logan councils during the 2016 elections, focusing on 55 allegations that involved perceptions that independent candidates weren’t really independent, candidates provided false or misleading disclosures and councillors unlawfully influenced council decisions on development applications.

CCC chair Alan MacSporran said the CCC found “widespread non-compliance” with laws and that was largely caused by deficient legislation and regulations.

He said the extensive package of reform would address equity, transparency, integrity and accountability.

“Each of the 31 recommendations addresses a deficiency in the current system, but their impact is consolidated and amplified by the implementation of the other recommendations,” he said.

“For this reason the Commission encourages the government to implement the whole package of reform.”