Ministerial code of conduct strengthened in response to Berejiklian ICAC findings

The NSW government has responded to two anti-corruption probes, including into former premier Gladys Berejiklian, by beefing up the ministerial code of conduct, forcing ministers to divulge the contents of previously opaque trusts and detail the interests of immediate family members.

Draft regulation drawn up by the Minns government has sought to address perceived shortcomings in the existing code of conduct, with the MPs’ code to explicitly articulate the “three guiding values of public trust, public interest and public duty”.

Former Premier Gladys Berejiklian and MP Daryl Maguire.Credit: Marija Ercegovac

The raft of changes came after two damning Independent Commission Against Corruption probes: the long-awaited Operation Keppel investigation into former Liberal MP Daryl Maguire which then considered Berejiklian, and the Operation Witney pursuit of Liberal Drummoyne MP John Sidoti.

The years-long investigations eventually resulted in the ICAC separately recommending the Director of Public Prosecutions (DPP) pursue Maguire and Sidoti for criminal charges after the pair were found to have engaged in “serious corrupt conduct”. Charges have not been laid against either.

Berejiklian, too, was found to have engaged in “serious corrupt conduct” by being part of the Expenditure Review Committee that awarded $5.5 million to the Australian Clay Target Association (ACTA) without publicly disclosing her relationship with Maguire, who had been actively pushing for grants for the organisation.

Berejiklian, too, breached public trust through a $30 million promise to the Riverina Conservatorium of Music for a recital hall, of which only $10 million was ultimately paid, the ICAC found.

NSW Premier Chris Minns said it was critical the expectations of ministers were made clear.Credit: Jessica Hromas

Despite finding the former Liberal premier had breached public trust and been conflicted between her public duty and private interest, the ICAC declined to ask the DPP for advice regarding her prosecution, finding the evidence available was not sufficient to prove to criminal standard, or beyond reasonable doubt.

The Operation Keppel report concluded: “The community may conclude that the applicable codes of conduct had little or no effect in discouraging the conduct of Mr Maguire and Ms Berejiklian identified in this report.”

Premier Chris Minns said the changes were intended to restore trust in government and were part of the government’s broader integrity reform agenda.

“It’s critical that our expectations of every minister and every member is made clear,” he said.

“The people of NSW need to have faith that politicians and elected officials are acting in the public interest. That faith is central to a working and healthy democracy.”

The amendments to the Independent Commission Against Corruption Act 1988 will enshrine a legislative requirement for the executive to respond to ICAC recommendations directed to the government.

Drummoyne MP John Sidoti leaves the ICAC in Sydney.Credit: Dominic Lorrimer

In response to the Operation Witney investigation, the government will implement two recommendations: one, amending disclosure regulations, requiring MPs to details their interests in hitherto inaccessible trusts, including self-managed super funds and discretionary trusts they could be a potential beneficiary of.

Other changes included amendments to the disclosure timelines will require new disclosures to be made within 28 days, including for MPs leaving parliament, and the details of the interests of immediate family members to be disclosed.

A mandatory registration of MPs’ conflict of interest will be enforced via the creation of a register for this purpose.

Denying any wrongdoing, Berejiklian has sought to overturn the ICAC’s findings through the courts.