Chinese billionaire had former Labor boss on retainer, ICAC told
Former NSW Labor general secretary Jamie Clements was so stressed when he lost his job he turned to a powerful new friend — a Chinese property billionaire and prolific donor — and received a $200,000 leg up, a corruption inquiry has been told
NSW
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Ousted NSW Labor boss Jamie Clements got so close with a Chinese billionaire donor that, when he lost his job, the mogul paid the former powerbroker $200,000 and free office space to restart his career, a corruption inquiry has heard.
The revelation comes as Huang Xiangmo’s former right-hand man says the “disgruntled” billionaire in exile sent an ominous message ahead of his testimony.
The Independent Commission Against Corruption is investigating claims Mr Huang handed $100,000 in cash to Mr Clements at a 2015 Chinese Friends of Labor dinner.
The money was allegedly disguised under the names of straw donors to circumvent restrictions on property developer donations.
Mr Huang denies the allegation.
The now Hong Kong-based tycoon had his permanent Australian residency cancelled in December 2018 but not before he struck up friendships with Labor heavyweights, former adviser Tim Xu said on Tuesday.
He also made donations to the Labor and Liberal parties and a smaller donation to the Nationals, the inquiry heard.
Mr Huang first met Mr Clements at the then NSW Labor general secretary’s office on Sussex Street around the end of 2014 or start of 2015, Mr Xu said.
The billionaire was interested in Mr Clements, his adviser said, because the Labor figure could help make connections with the Victorian government.
“There was a delegation visiting (Victoria) from China,” Mr Xu said.
Mr Clements was relevant because he was allegedly willing to “establish some links” for Mr Huang’s delegation.
The pair dined at Mr Huang’s lavish Mosman mansion and at Master Ken’s Seafood Restaurant in Chinatown, Mr Xu said.
Xu, who served as a translator in many dinners and meetings, said Mr Clements began working for Mr Huang’s Yuhu group “on retainer” a few months after he bowed out of politics in January 2016.
“At the time Mr Clements was pretty stressed because the loss of his job,” Mr Xu told the inquiry on Tuesday.
“He was seeking help from Mr Huang for his own career. He suggested he can offer Mr Huang the consulting services to which Mr Huang eventually agreed and put him on retainer.”
Mr Clements was paid about $10,000 per month by The Yuhu Group and worked on the same floor as the Promotion of the Peaceful Reunification of China organisation, Mr Xu added.
The ACPPRC, as it is called, is a pro-Beijing communist party front that Mr Huang served as president of until late 2017.
The former Labor chief would provide help to Mr Huang when it came to relationship building, media and some legal work, the inquiry heard.
The alleged total value of the contract, which the billionaire and former politician signed, was about $200,000 plus the free rent on Pitt Street. It has since been terminated, Mr Xu said.
Mr Xu gave evidence to the ICAC at a private hearing in June this year but, just before he did, his father passed on a message from a mutual friend he shares with Mr Huang.
The billionaire believes his former assistant has spoken with government officials about “his activities in Australia”, the mutual friend told Mr Xu’s father.
“I think (Mr Huang’s) view was I played a role in having his visa cancelled,” Mr Xu said.
“He’s somehow disgruntled his permanent residency was cancelled and he believes I played a role in that.”
Mr Huang’s message allegedly added that “the truth will come out for Tim”.
Mr Clements’ successor, Kaila Murnane, also met with the billionaire “two or three times” and discussed political donations, Mr Xu said.
Then-lower House MP Ernest Wong, who is being investigated as the initiator of the Chinese Friends of Labor dinner, was also a close friend of Mr Huang, the inquiry heard.
They spoke on the phone and on WeChat, but their discussions in Mandarin were often done away from the ears of Mr Huang’s translator.
It would be almost two years after leaving politics that Mr Xu met Mr Clements at a cafe in Sydney’s north.
Mr Clements was worried about the ICAC investigation, Mr Xu said.
“He seemed quite stressed about investigation he genuinely doesn’t remember Mr Huang delivering bag of cash,” he said.
Mr Xu said he felt it was likely “a rumour” that Mr Huang had walked into the Labor office carrying an “Audi car bag” — he would later learn it was an Aldi shopping bag of cash under investigation.
“I said it sounds to me very unlikely Mr Huang could walk in by himself, and the bag was quite unusual,” Mr Xu said.
Mr Clements will give evidence at the commission on Wednesday and Mr Wong will give evidence on Thursday.