Annastacia Palaszczuk’s chief of staff’s company awarded taxpayer funds for smartphone app

The LNP has called for an independent investigation into how a company associated with Premier Annastacia Palaszczuk’s right-hand man was awarded a $267,500 taxpayer handout.

QUEENSLAND’S Auditor-General should be the one to investigate the awarding of a $267,500 taxpayer handout to a business part-owned by Premier Annastacia Palaszczuk’s right-hand man, the LNP says.

Deputy Opposition Leader Tim Mander has called for an independent investigation into the awarding of the Business Development Fund cash to Fortress Capstone - of which Ms Palaszczuk’s chief of staff David Barbagallo is a shareholder and director.

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It comes after the Premier on Tuesday said she would ask her director-general to look into it after initially being blindsided by Opposition questions on the funding during Tuesday’s Budget Estimates hearing at state parliament.

“Annastacia Palaszczuk needs to appoint the independent auditor-general to investigate the claims that her chief of staff received a government grant,” he said.

“The Opposition does not think it is appropriate that somebody so close to the Premier, somebody internal would do this investigation.

“This investigation needs to be done by somebody that is independent and we believe the auditor-general is the right person.”

Mr Mander also called for all the documents related to the awarding for the funds, including integrity commissioner advice, be released publicly.

Premier Annastacia Palaszczuk’s chief of staff, David Barbagallo. Picture: AAP Image/Jono Searle

The Premier said her right-hand man has her support following the revelations.

“Yes I do support him and he has assured me that everything as I said yesterday has taken place in terms of the obligations he had to do,” she said.

The Premier has said no government representatives were on the panel which decided on the investment, while a government spokesman said Mr Barbagallo had withdrawn himself from the application process before becoming chief of staff.

LNP Leader Deb Frecklington called for an investigation, declaring the awarding of money to a company linked to one of the government’s most powerful men did not pass the pub test.

“Queenslanders have a right to know why the Palaszczuk Labor Government wrote a six-figure cheque for David Barbagallo’s business,” she said. “What integrity tests were applied — if any — and what happened to the money?”

Fortress Capstone received $267,500 from the $80 million Business Development Fund last year to develop the CruiseTraka app.

Queensland Premier Annastacia Palaszczuk speaks during estimate hearings at Queensland parliament in Brisbane, Tuesday, July 23, 2019. (AAP Image/Jono Searle)

“CruiseTraka (Fortress Capstone Pty Ltd) is a smartphone-based solution used by passengers to share their cruise experience with family and friends back home in almost real time via social media and email,” the Business Development Fund’s website states.

The fund — established under the Government’s Advance Queensland scheme — awards businesses between $125,000 and $2.5 million to develop their ideas, with the Government becoming a co-investor in the business in exchange for the cash.

Company records show the fund became a shareholder in Fortress Capstone in February 2018. Mr Barbagallo has been a director since 2007.

Ms Palaszczuk was initially unable to say if she had been made aware of the investment when questioned by LNP Leader Deb Frecklington.

Queensland opposition leader Deb Frecklington. Picture: AAP Image/Jono Searle

But she later clarified Mr Barbagallo — a longtime Labor figure who rose to prominence in party circles while working for the late Wayne Goss — had informed her the company had been successful. The audit of the awarding of the funds will be undertaken by Ms Palaszczuk’s director-general.

A spokesman for the Government said initial talks regarding the application began in 2017, before Mr Barbagallo took the chief of staff role. He said the full application was made after his appointment to the role. But he insisted Mr Barbagallo had withdrawn himself from the process at that point “as soon as he was employed by the Premier”.

“The investment is in the company, of which the chief of staff is one of approximately 20 shareholders,” he said. “As outlined on the fund’s website, any amount invested in a company is a consequence of a decision made by the independent panel with no government or ministerial input. Just like when a private entity invests in another private company, it is not a grant or a loan — it is an investment which results in a share of the company and (its) profits.”

Queensland Premier Annastacia Palaszczuk. Picture: AAP Image/Dan Peled

Ms Palaszczuk said a panel of private investors were responsible for deciding which businesses should benefit, with no government representatives on the panel.

“The chief of staff filled out his pecuniary interest register in accordance with guidelines,” she told the hearing.

“The chief of staff sought Integrity Commission advice. The chief of staff advised me last year that a company had been successful and all measures were in place. For completion, the DG will conduct an audit. No decision was taken by a minister in relation to it. It has been at arm’s length. I am happy, for clarity, to do an audit to ensure that all processes were followed. I know the chief of staff is absolutely rigorous in making sure that processes are followed.”

The Premier’s office could not say last night if Mr Barbagallo’s pecuniary interest register would be released.

Mr Barbagallo is known in Labor circles as a Mr Fix-it as well as a political headkicker. He was one of many Labor figures embroiled in the 2001 Shepherdson inquiry into electoral fraud. He was fined $1000 over the enrolment scheme.

The Premier said she couldn’t comment any further, citing the audit she called for yesterday.