Former Minister and staffer used ‘code’ to cover alleged illegal political donations to slush fund, ICAC told

FORMER minister Chris Hartcher and the staffer accused of running a slush fund out of his office used a “code” to talk about allegedly illegal political donations, ICAC told.

Timothy Koelma leaves the ICAC inquiry. Picture: Bradley Hunter

FORMER minister Chris Hartcher and the staffer accused of running a slush fund out of his office used a “code” to talk about allegedly illegal political donations- calling donors “friends” from either the North, West or Sydney, the Independent Commission Against Corruption heard today.

In an email from former staffer Tim Koelma, who allegedly operated the sham company Eight by Five to Mr Hartcher on 4 June 2010, Mr Koelma said: “Updates for a few things you asked me to do this week.”

Under the heading “Friends”, Mr Koelma wrote:

“Sydney — steady. meeting them next week. West — steady. discussing correspondence on Monday. North- nothing yet.”

Mr Koelma admitted in ICAC today that “Sydney” was a reference to property developers Gazcorp, “West” was a reference to Australian Water Holdings, and “North” was a reference to Newcastle property developers Buildev.

Code ... Chris Hartcher

Mr Koelma told Counsel Assisting the inquiry Geoffrey Watson SC that “friends” was a reference to his clients at his marketing company Eight by Five.

“Why did you put friends rather than clients? How would Mr Hartcher know who you were talking about?” Mr Watson said.

“Was this a kind of code you entered into with Mr Hartcher to discuss these contracts?”

“I don’t think it was a code, I think it was just a colloquialism,” Mr Koelma said.

Mr Koelma was asked about any role former Police minister Michael Gallacher had in securing a contract for Eight by Five from Buildev.

“It had been Michael Gallacher who introduced Mr Hartcher to [Buildev boss] Darren Williams. It was Mr Gallacher who suggested these services could be provided to Buildev,” Mr Watson asked.

“I’m not sure,” Mr Koelma said.

Mr Watson and Commissioner Megan Latham have become increasingly frustrated with Mr Koelma’s answers to questions, with Mr Watson at one point telling Mr Koelma he will go to jail if he continues to lie.

“Can I just remind you even if you relent now, and tell the truth, people might go easy on you,” Mr Watson said.

“You can take a cab out to Malabar [Long Bay prison] at lunchtime and take a look.”

Mr Koelma has been unable to explain what work he did for the companies that retained Eight by Five.

He also has no documents to support his assertion that he provided “valuable advice” to the businesses.

Eight by Five allegedly raised more than $400,000 in donations to the Liberal Party. Mr Koelma’s former colleague Ray Carter told the commission yesterday that Eight by Five was a front to wash illegal donations.

“Could I suggest to you that Mr Hartcher was the mastermind of this. It was his idea to set up this business, Eight by Five, which could then produce fake invoices and collect money on behalf of the Liberal party?” Mr Watson asked.

“Absolutely not,” Mr Koelma replied.

The hearing continues.