Gladys Berejiklian has left but the Independent Commission Against Corruption wars continue — perhaps now with a genuine martyr to press the cause.
And the impact is not only in New South Wales. It’s likely to spill over into the shape of a federal version of the ICAC, should it ever come to pass. The question is: might those who wish to rein in ICAC — “the monster” as its critics call it — look to ICAC’s future by going back to the past?
A quick recap.
The NSW premier resigned last Friday after the ICAC announced it would focus its investigations on actions taken by Berejiklian in relation to former NSW MP Daryl Maguire. Berejiklian was in a secret relationship with Maguire for five years before it was revealed, sensationally, at ICAC hearings in August last year.
Did Berjiklian intercede to ensure a $5.5 million grant went to the clay target association in Maguire’s Wagga Wagga electorate? Did she more generally know of Maguire’s dodgy dealings while an MP but fail to pass on that information to ICAC? Or did she actively turn a blind eye, even as premier?
It’s important to underline that ICAC is yet to investigate and make findings. Berejiklian stepped aside having assessed that her position was untenable — win, lose or draw — with ICAC’s work likely to take up most of the period before the state election in 18 months.
Public support for Berejiklian has been enormous, in part because of a very effective piece of spin from the premier’s office that she had been the victim of a dud boyfriend. Senior Liberals have various degrees of fury about ICAC — primarily on the grounds that it trashes reputations of good people by holding open hearings which air the worst of allegations.
Is it unfair?
Whatever you think of Berejiklian, she is no Eddie Obeid, the former NSW MP who committed industrial-scale corruption while on the public purse. But Berejiklian’s fate is now bracketed with two other NSW premiers, Nick Greiner and Barrie O’Farrell. O’Farrell resigned after it was revealed he had failed to declare the gift of a bottle of Grange — having already told ICAC he did not receive it. In Greiner’s case, ICAC found he engaged in corrupt conduct. Greiner was leading a minority government and was forced to resign. The finding was later overturned by the NSW Court of Appeal.
What had Greiner done? A former minister in his government had defected to become an independent. He was then offered a senior position in the government, opening the way for a byelection in a safe Liberal seat and a chance for the government to restore its numbers — an apparent use of the public service for a political motive.
But it’s what happened next in the Greiner case that it is revealing and which may act as a signpost for the future of ICAC: the NSW Ccourt of Appeal found that ICAC acted outside its powers.
Section eight of the ICAC Act includes a laundry list of corrupt acts: bribery, blackmail, fraud, theft, embezzlement — to name some — on top of official misconduct (including breach of trust and fraud in office). But section nine limited the definition such that it applied only to acts that would be ” a criminal offence”, a “disciplinary offence” or constitute “reasonable grounds for dismissing, dispensing with the services of or otherwise terminating the services of a public official”.
The Court of Appeal found the Greiner case was not corrupt conduct in these terms.
In response, the act was amended to broaden the definition of corruption. A new category was added to section nine which gave ICAC the power to include “a substantial breach of the codes of conduct for ministers and parliamentary members”, a wider definition which has opened the scope of ICAC’s powers since, taking it into territory not originally intended.
It’s not clear whether or not Berejiklian would be investigated under the first version of ICAC’s powers.
ICAC’s Greiner decision also sat oddly with the times. ICAC was introduced — by the Greiner government — in the late 1980s when NSW was engulfed in serious corruption to the highest levels of the police, government and judiciary.
A royal commission into premier Neville Wran cleared him of attempting to influence a magistrate, but much more was happening besides. It reached its zenith, or depths, when the minister in charge of prisons, Rex Jackson, was imprisoned, having been found guilty of accepting bribes to free certain prisoners under the euphemistically named prisoner early release scheme. (So rife was the joint with corruption back then that even your humble correspondent was able to file a credible report that a NSW minister of the day had attempted to interfere in a court case involving a Chinatown kingpin and allegations of heroin importation.)
ICAC was established as a standing royal commission with the wide powers of a royal commission, to compel the production of documents, seek telephone intercepts, etc. It has been criticised for trashing people’s reputations — even though the same happens at all royal commissions. Big names have been dragged through the mud at royal commissions into banking, church child sex abuse and police corruption.
One key difference, though, is that the ICAC is able to establish its own terms of reference, rather than follow terms set by governments. It’s that level of independence which infuriates the commission’s well-connected opponents — some of whom just happen to also control its funding.
Aside from the undeclared conflict of interest in the relationship with Maguire, with a Premier turning a blind eye to an MP’s off-the-books side hustles, has everyone forgotten the $250 million Stronger Communities Fund used for blatant and shameless partisan pork-barrelling, with Berejiklian’s office destroying the paperwork afterwards? How did the cleanskin reputation endure, apart from a compliant right-wing media?
If Berejiklian shot someone in Pitt Street, the Murdoch press would be full of op-eds complaining that our gun laws were too tough.
Bring on a Federal ICAC.
I don’t think John Barelaro has forgotten it, in fact it could be one of the motivators for his resignation. And no need to declare an anonymous bag of cash for his vexatious legal suit against Shanks, as had good old Porterable Cash Can been required to declare.
Look at South Australia, where both sides of the House combined to water down their ICAC before it got off the slab and came after them. Gotta wonder what someone is hiding…
Exactly, it was a unanimous vote, all MPs wanting more distance between them & the Commissioner. I would’ve thought any parliament with integrity would want the bar raised rather than lowered.
Yes I imagine the corruption would be no different in SA.
Recall Operation Spicer
‘Counsel assisting Icac, Geoffrey Watson SC, presented evidence to the inquiry suggesting that Brian Loughnane federal Liberal party director, gave the green light for the use of federal avenues to sidestep the NSW ban on donations from property developers.
Loughnane agreed to filter banned donations through the Canberra-based Free Enterprise Foundation.
“Brian Loughnane has agreed that for the time being the Fed Sec (federal secretariat) will operate on the policy … in effect, there is no benefit for a NSW donor to donate to via the Fed Sec, unless they are a property developer,” the July 23, 2010 email written by federal Liberal executive Colin Gracie to then-NSW Liberal party finance director Simon McInnes said.
Berjiklian was the NSW property developers go to, just as the rest of the NSW Coalition have always been. Probably the same in SA.
‘She is no Eddie Obied’ ? Well let’s wait and see. The fact that Wagga is base camp for this event has some people looking at other ‘enabling’ activities in that region (on a State and Federal level). Class A crooks get nowhere without ‘enablers’. I was only following orders (or pretending not to hear the screams).
Man, you Crikey lot really need to *contemporize*. Yes, Obeid was an outrageous crook, but he got caught and went to jail for his crimes, as he deserved. Since then, the NSW Libs seem to be hell-bent on proving that nobody does systemic corruption better than them. Parakeelia? Australian Water Holdings? Free Enterprise Foundation? Any of those ringing any bells? Systematic money laundering and off the books meetings between MP’s and illegal lobbyists, all ably run by the NSW Liberal Party. Aside from the whole McGuire fiasco, so many of Binchicken’s dumb decisions can only be understood if viewed through the lens of corruption and vested interest. The sale of the Land Titles Registry, the LGA amalgamations, the Football Stadium fiasco, the Light Rail Disaster, the watering down of land-clearing legislation, the decision to move the Powerhouse Museum, the dodgy Water Licenses business. I think its pretty fair to assume that all of these decisions were made to meet the needs of donors/lobbyists connected with the Liberal Party-whether on or off the books. If you ask me, Binchicken has gotten off lightly.
Surely the biggest act of corruption was when Glad punted the entire Vales Point Power Station for $1mio to a consortium led by Liberal Party Patrons?
They got it for $1mio, within 30 months it was independently revalued by banks at $730mio, having made $200mio plus selling electricity back to the NSW Govt.
Next might be how Fatty O’Barrel handed James Packer the Barangeroo gem.
In comparison, Obeid was an amateur and he/McDonald shouldn’t be the only ones in gaol.
Greiner’s hearing was ridiculous. The finding against him is now standard operating procedure for a government.
O’Farrell’s dilemma seemed to be a poor memory and not declaring a gift, hardly significant in the grand scheme of things, even if it was valued at around $3K
This seems to me to be a whole different kettle of fish. Big fish at that.
The ICAC scope should be wound back to the original legislation, but their funding should be adequate and protected.
O’Farrell quit because he knew the gift was just the tip of the iceberg. Had he toughed it out, he knew that the bottle of grange would lead into a rabbit’s warren of corruption.
I was surprised that O’Farrell resigned. He could have apologised for his error.
As I said, he knew it was more than just an error. The Grange was just the entrance to the rabbit hole. He knew it, so fell on his sword to prevent things from going any deeper.
I agree and perhaps it said something about the man.
That he wanted a diplomatic posting and no question time regarding all his Liberal mates who had been forced to sit on the cross bench?
Baird cut ICAC funding, sold off everything he could find including the titles office and the courts precinct in Paramatta and then got out of town.
Errr, that ‘error’ was the subject of an ICAC investigation and he and 10 of his Liberal fellow politicians were ICAC removed. The Wall of Shame, but just remember the name Obeid.
Liberal politicians resigned, stood aside or named at Icac
http://www.icac.nsw.gov.au/investigations/current-investigations/investigationdetail/203
Arthur Sinodinos (NSW federal senator)
Steps down in March as federal assistant treasurer over his dealings with the company Australian Water Holdings.
Premier Barry O’Farrell (Ku-ring-gai)
Resigns as NSW premier on 16 April after misleading Icac .
Mike Gallacher (upper house) Police Minister.
Hugh Thomson, told the inquiry Gallacher had “orchestrated” the donation of $120,000 from Tinkler’s development company, Buildev. Steps down as police minister on 2 May and joins cross bench. Not called on by Baird to resign.
Garry Edwards (Swsansea)
stood aside from the party after being named at a corruption hearing by Newcastle property baron Jeff McCloy.
Chris Hartcher (Terrigal)
Tinkler and Buildev went about currying Liberal favour by slipping large amounts of illegal money to their campaign. The $120,000-plus referred to by Thomson in his evidence is just part of it. At a previous hearing, back in May, the claim was that Buildev used a sham arrangement to kick in another $66,000, to a Liberal Party slush fund, Eight By Five, associated with former state energy minister and Central Coast Liberal powerbroker Chris Hartcher. He stepped down as energy minister in December and moved to the cross benches in February. Baird has not asked for his resignation.
Chris Spence (The Entrance)
Moves to the cross benches in February amid corruption allegations. Announces in June that he will not contest 2015 state election.
Darren Webber (Wyong)
Moves to the cross benches in February amid corruption allegations. Announces in June that he will not contest 2015 state election.
Marie Ficarra (upper house)
Allegedly solicited banned donation. Moves to the cross benches in April.
Tim Owen (Newcastle)
Announces on 12 May that he will not contest the 2015 state election because of recurring health issues and Icac allegations. Concedes banned donors “probably” contributed to his 2011 political campaign. Moves to the cross benches on 6 August on the first day of new round of Icac hearings. Quits parliament on 12 August after admitting to lying to Icac about returning $10,000 to developer and now Newcastle mayor Jeff McCloy. Cornwell used some of the money to pay his taxes. He conceded that since the election, he had met with McCloy many times, but asked when their most recent meeting was, he said: “Um, maybe a week or two ago or maybe a couple of days.
Andrew Cornwell (Charlestown)
Moves to the cross benches, resigns as government whip on 6 August after allegations he was offered $10,000 in a brown paper bag by McCloy in his Bentley. He later admits to receiving the money, in addition to a $10,000 bribe from another developer property developer Hilton Grugeon. Announces on 8 August that he will not contest 2015 state election. Quits parliament on 12 August.
Craig Baumann MP Port Stephens
Former Mayor of Port Stephens.Thomson, who agreed to give evidence on the basis that it would not be used against him in criminal proceedings, also claimed that Craig Baumann, the Liberal MP for Port Stephens, arranged for Buildev to help cover the wages of one of Owen’s campaign staff.
Bart Bassett Liberal MP
Former Mayor of North Richmond. Documents show $18,000 from Buildev was donated to Bassett’s 2011 campaign through the [Liberal slush fund] Free Enterprise Foundation. Bassett refers to this as a ‘distraction’, which he doesn’t want to impinge upon the Liberal party, and thanks to Murdoch it won’t rate more than a one liner if that.
Robyn Parker
Former environment minister who denies McCloy’s ‘ niggling suspicion he had given to the family of another Hunter politician’ , we await further developments.
Thanks for the reminders.
I’m playing catch-up with my Crikey reading. It’s now 5/10 and I see that yesterday The Daily Telegraph ran a (fairy) story called: Former Charlestown MP Andrew Cornwell calls for ICAC reforms after Gladys Berejiklian resigns Former Liberal MP Andrew Cornwell spent four years being accused of lying to ICAC before his name was cleared. He wants changes to stop it happening to others.
This story does not state that the reason Cornwell quit was because he had ADMITTED to accepting illegal donations it only deals with the perjury allegation of which he was eventually cleared. But here’s a clip from a GA story on the illegal donations:
“Cornwell admitted at Icac last week to receiving $20,000 from property developers and announced he would resign at next year’s election. He sought parliamentary leave after his appearance at the hearing. He told Icac he had accepted $10,000 in a brown paper bag in a Bentley from McCloy, in the leadup to the 2011 election, despite there being a ban on developer donations. He also confessed to using $10,000 from the sham sale of a Rex Newell painting to a property developer to pay his payroll tax bill.” https://www.theguardian.com/world/2014/aug/12/liberal-mps-tim-owen-and-andrew-cornwell-quit-after-icac-admissions
So there you have it, my friends, a perfect illustration of the way the Murdoch media distorts reportage to favour the LNP and undermine accountability agencies and mechanisms. Bloody disgrace.
ICAC should be able to inquire but perhaps the initial interviews are recorded and then made public when everything is collected. The whole of the interviews and other evidence can be replayed etc. This could happen for say Ministers and Premiers so that it does not effect their current situation and would stop the moves by the creeps to weaken the ICAC powers.
By the time ICAC gets to public hearings they have already taken testimony in camera and interviewed other people and tapped their phones.
No, O’Farrell’s demise was portrayed by the media and still is as a bottle of wine mishap. Far greater than that, and he escaped like Sinodinos from ICAC’s AWH Obeid scandal. Fatty resigned, but Sin hung in there with a memory loss that put Fatty’s own memory loss to shame.
Emails obtained by the Independent Commission Against Corruption (Icac) showed that Tim Koelma, the chief of Liberal slush fund Eightbyfive, was drafting letters both to and from the office of the then opposition leader, Barry O’Farrell, about the Obeid-linked AWH.
Premier Fatty O’Barrel 2011-2014, was eager to ”allow more private ‘involvement’ and ‘management’ of public land which was another ICAC subject of investigation.
“ICAC will now investigate how a perpetual lease on a site occupied by the Paddington Bowling Club was turned into a 50 year commercial lease and then transferred to developer Christian Sanchez’s CSKS Holdings.”
O’Farrell’s government was accused of running a poker machine “slush fund” after it emerged that a $20m pool of club profits was spent overwhelmingly on community projects in Coalition electorates or to pay for Liberal-National party election promises.
The ClubGrants Category 3 fund was established in 2011 … signed between the NSW Liberals, the Nationals and Clubs NSW the year before. In exchange for higher tax rebates, the clubs industry agreed to direct a fraction of its profits into the Category 3 fund…
An auditor general’s report in 2013 found that in the program’s first year of operation, the money in the pool, amounting to $8m, had been spent at the discretion of the gaming minister without proper oversight, and only on fulfilling Liberal-National party election promises.
In 2013 and 2014, $12.4m was allocated by the program to community projects.
And so O’Farrell should have been called O’Barrell whilst rolling out an earlier version of what Gladys referred to as “Not illegal”.
Whether a 3k bottle of wine passes the pub test probably depends on which town or suburb the pub is in.
What about his private meetings with James Packer?