Political bombshell: Opposition Leader Peter Malinauskas allegedly blackmailed by former MP
Former Labor MP Annabel Digance and her husband Greg made no comment this morning as they left their home following their bombshell arrest, as Opposition Leader Peter Malinauskas spoke out.
Police & Courts
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Former Labor MP Annabel Digance and her husband Greg have been arrested at their Adelaide Hills home and charged with blackmailing Opposition Leader Peter Malinauskas.
In a bombshell development that will rock South Australian politics, the pair were arrested by Major Crime detectives on Wednesday morning, April 14, following a lengthy covert investigation – believed to be the first of its type in Australian politics.
After being arrested by detectives at their Strathalbyn home, the couple were formally charged and were bailed in the Adelaide Magistrates Court shortly after 2pm.
The couple made no comment to waiting media as they left their home in separate cars about 10.30am Thursday morning.
Neighbours said they had kept to themselves since they moved into the property last year.
Annabel and Greg Digance leave their Strathalbyn home with no comment on claims they blackmailed Labor leader Peter Malinauskas. â¦@10NewsFirstAdlâ© pic.twitter.com/tbweRSB5Oz
— Alan Murrell (@AlanMurrell10) April 15, 2021
Meanwhile, Labor’s state executive decided on Thursday afternoon to expel the couple from the party.
Mr Malinauskas broke his silence just after 3pm, outlining why he contacted police.
“When I became leader of the South Australian Labor Party, a short three years ago, I knew there would be occasions where my leadership would be tested, I knew there would be important judgment calls to be made,’’ he said.
“But I never thought I would find them myself in this set of circumstances.
“Early last year, I witnessed conduct that I thought was inappropriate and potentially unlawful, which is exactly why I immediately sought legal advice, and then subsequently reported that matter to South Australian police.
“I did that not because it was the easy thing to do, I did it because it was the right thing to do.
“It is absolutely critical that every South Australian can have confidence in the integrity of the democratic process that they can have confidence that the members of parliament, particularly those people in leadership positions, fulfil their very clear obligations under the law, to not look the other way when someone does the wrong thing, to not sweep matters under the carpet, if that’s what’s convenient.
“Instead, it is critical that obligations are fulfilled. And that’s exactly what I did, early last year when I reported the matter to South Australian police.
“Naturally everyone here would appreciate that I’m not in a position to make comment on that as that is now before the court.’’
READ PAUL STARICK’S ANALYSIS OF THIS UNFOLDING STORY
PARLIAMENTARY ‘BULLYING’ INQUIRY WILL GO AHEAD: AG
Prosecutors said they did not object to the couple being released on bail, provided certain guarantees were made.
They conceded that, while state law usually blocks alleged blackmailers from receiving bail, the couple’s case demonstrated “special circumstances”.
Counsel for the duo said they would lodge $5000 cash each with the court, provide a guarantor will to offer another $5000, surrender their passports and remain at the Strathalbyn address.
They also agreed not to contact or approach Mr Malinauskas by any means, including electronic communication.
The court agreed, ordering the couple be released as soon as the cash had been lodged with the court.
They will next appear on June 15 at 11.30am.
The offence of blackmail carries a maximum prison term of 15 years for a basic offence and 20 years for an aggravated offence.
The Advertiser can reveal the charges relate to threats allegedly made to Mr Malinauskas by the pair last year and over recent months.
SA Police issued a statement following the court appearance.
“The victim in this matter is Mr. Peter Malinauskas,” it said.
“Given the nature of the charge of blackmail it will be alleged that the two accused persons in a common enterprise sought to obtain a personal gain by threatening to make allegations of alleged misconduct by Mr. Malinauskas.
“It is important to be clear that the allegations did not relate to any form of criminal behaviour by Mr. Malinauskas.”
Mr Malinauskas is not being investigated by SAPOL for any criminal offence and is not suspected of any criminal offence.
“Mr. Malinauskas is simply the victim of an alleged blackmail and the details of the allegation will be presented and tested through the prosecution and judicial process.”
SA Police said Mr Malinauskas first approached SAPOL in February, 2020, and the investigation has been ongoing since then – culminating in the arrests.
“Mr. Malinauskas continues to assist investigators with this matter with SAPOL supporting him as we do for any other victim of crime.”
Annabel Digance, 63, thanked the court, while Greg, 60, said he had a question to ask.
“Am I allowed to travel to Victoria to bring back a car I purchased?” he asked.
Magistrate Johnathan Wells replied: “No … that’s a matter for the future and should not be your focus at this stage.”
The threats allegedly involved making false accusations about Mr Malinauskas’ conduct in order to politically wound him in the lead-up to the state election next March unless he submitted to their demands to orchestrate Ms Digance’s return to politics.
Those demands allegedly included placing Ms Digance in a winnable spot on the Legislative Council ticket or preselecting her for a safe Labor seat prior to election or securing her a Senate position in federal parliament.
The threats were allegedly made in text messages, in telephone calls and at face-to-face meetings. It is understood the alleged threats continued even after Mr Malinauskas told the pair he intended to report their demands to police.
It is understood the threats to damage Mr Malinauskas revolved around spreading baseless allegations of racism, bullying, harassment and sexism.
In late March, Ms Digance vowed to speak out about “many, many examples” within the party of misuse of power, bullying, intimidation and other alleged harassment.
Last month Ms Digance, who was the Labor MP for the seat of Elder from 2014-18 and was a lecturer in health administration at Flinders University in 2019, was vocal on Twitter on such topics.
“There are many, many examples within the Labor ranks of misuse of power, intimidation, bullying, ignoring, gaslighting …. need I go on?’’ she tweeted.
It followed a report urging state parliament to act on an official review that uncovered allegations of indecent exposure, assault and sexual suggestions by MPs and their staff in state parliament.
Just days later in several interviews Ms Digance issued a belated apology for the 2014 “Can you trust Habib?” election pamphlet controversy that slurred her opponent Carolyn Habib, now Carolyn Power.
In the fallout from that campaign Ms Digance was accused in state parliament of running a “racist campaign’’ because of the offensive nature of the leaflet.
The leaflet depicted Ms Power in silhouette against a bullet riddled wall, clearly referencing her Lebanese background.
In last month’s belated apology, which was resoundingly rejected by Ms Power, Ms Digance stated that she was remorseful over the incident and that she had protested to Labor officials at the time, but was told to remain silent.
Distancing herself from the pamphlet, she blamed Labor officials for deploying it, stating she would never have supported it.
“I have carried this with me for so long it has caused me deep stress,’’ she said in the interview.
“I saddens me that what should have been a proud time for me being elected to serve the community has instead been overshadowed by something so horrible.
“I also feel bad that after I was told not to say anything about it that I stayed silent out of some misplaced sense of loyalty to the party.’’
Ms Digance’s claims were the catalyst for the Liberals to successfully move for a parliamentary committee to investigate the matters she ventilated.
Since being defeated at the 2018 election – by Ms Power – Ms Digance has made a number of overtures to party officials concerning preselection.
When former member for Enfield John Rau retired from politics in late 2018 she sought preselection, but was told she would not be considered for the safe Labor seat.
Prior to winning the seat of Elder in 2014, Ms Digance twice unsuccessfully ran in the federal seat of Boothby.
Greg Digance is reasonably well known in Adelaide business circles. He has previously owned several McDonald’s franchises in Adelaide and Alice Springs. He has been an active participant in his wife’s federal and state election campaigns.
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