Top prosecutor ‘struggled’ with fraud charges for Logan councillors

Queensland’s DPP has told a parliamentary inquiry into the charging of eight Logan councillors with fraud he had “always struggled” with the move.

Director of Public Prosecutions Carl Heaton, main image, told the inquiry he did not think there was sufficient evidence for fraud charges against eight councillors to continue; and CCC chair Alan MacSporran, inset, was due to undergo further questioning at the inquiry but will return on Monday.

A parliamentary inquiry into the charging of eight Logan city councillors with fraud has been dramatically adjourned, moments before the head of the state’s Crime and Corruption Commission was due to take the stand for a second grilling.

Parliamentary crime and corruption committee chairman Jon Krause put an abrupt halt to proceedings this morning, just as CCC chair Alan MacSporran was ready to be questioned on his role in charging the eight.

Mr MacSporran’s lawyer Peter Dunning QC, a former solicitor-general, had wanted to present concerns about legal “correspondence” from counsel assisting the inquiry Jonathan Horton QC.

It is believed Mr MacSporran’s lawyers were concerned about prospective questions arising from evidence given by witnesses last week.

Witnesses included the Logan City Council Interim Administrator Tamara O’Shea and two former councillors treasurer Trevina Schwarz and Russell Lutton.

The two councillors lost their jobs in 2019 while the charges were pending, and the charges were dropped two years later.

After an hour-long pause in proceedings the hearing resumed, only to be adjourned again after Mr MacSporran said he had not read documented evidence from last week’s witnesses.

The CCC chair said he did not want to contaminate his evidence with that of other witnesses.

While on the stand, he was also asked to withdraw profanities uttered when he read out a transcript from an intercepted telephone call between former Logan mayor Luke Smith and the former Brisbane Lord mayor Jim Soorley.

Mr MacSporran agreed to withdraw the profanities only, and was then told to go away and read a stack of documents of evidence given by last week’s witnesses.

The committee also heard from Director of Public Prosecutions Carl Heaton, who told the inquiry he had “always struggled” with charging the councillors with aggravated fraud under the Criminal Code.

Queensland’s Director of Public Prosecutions Carl Heaton told the inquiry he did not think there was sufficient evidence for the prosecution of the fraud charges against eight Logan councillors.

He said, in his opinion, any charges should have been made under the Public Interest Disclosure Act, with the alleged offences not rising above a charge of reprisal.

“And even then, on the evidence, I think there would be insufficient evidence to prove that offence, but at least that goes to the heart of what was alleged to have been done — that this was a retaliation for a public interest disclosure.

“But dishonestly causing a detriment — that’s a bit more convoluted.”

The inquiry heard Mr Heaton had received a full brief on the councillors’ criminal case in August 2019 before the matter went to a nine-day committal hearing in Brisbane Magistrates Court in November 2020.

The committal was never completed after DPP officers raised concerns about insufficient evidence with Mr Heaton, who called for the fraud charges to be discontinued in April 2021.

Mr Heaton told the inquiry, CCC officers and DPP officers met in December 2020 to discuss the case before he and Mr MacSporran met in April, five days before the charges were dismissed.

The inquiry heard the two men had differing opinions about the charges.

“This was the first time I was asked to consider the sufficiency of the evidence,” he said.

“The conclusion that I came to was that, at that point in time, there was insufficient evidence to continue the prosecution.”

The inquiry will continue on Monday, when Mr MacSporran is due back in the witness box.