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Lib MPs ‘acted with intention to evade the law’, ICAC finds

UPDATE: Mike Baird has ruled out former police minister Mike Gallacher making a return to Cabinet or the Parliamentary Liberal Party after the ‘stark’ and ‘unacceptable’ ICAC findings today.

ICAC Operation Spicer public inquiry at 55 Castlereagh Street, Sydney. Witnesses Charlestown MP Andrew Cornwell and his wife Samantha Brookes arrive at ICAC holding hands. Picture Cameron Richardson
ICAC Operation Spicer public inquiry at 55 Castlereagh Street, Sydney. Witnesses Charlestown MP Andrew Cornwell and his wife Samantha Brookes arrive at ICAC holding hands. Picture Cameron Richardson

NSW Premier Mike Baird has slammed the conduct revealed in today’s bombshell report released by the Independent Commission against Corruption, calling it “unacceptable” and saying “the Government has zero tolerance for corruption.”

“The report justifies the tough actions we took between May and August 2014 when a number of former Liberal MPs permanently left the Parliamentary Liberal Party,” he said.

According to the report, former NSW Labor minister Joe Tripodi “engaged in serious corrupt conduct” by giving a confidential Treasury report to Nathan Tinkler’s Buildev company.

It found Tripodi should be referred for consideration of prosecution for “the common law offence of misconduct in public office”.

Premier Mike Baird ruled out former Police Minister Mike Gallacher returning to Cabinet or the Parliamentary Liberal Party. Picture: Attila Szilvasi
Premier Mike Baird ruled out former Police Minister Mike Gallacher returning to Cabinet or the Parliamentary Liberal Party. Picture: Attila Szilvasi

ICAC also found that seven Liberal MPs including current MP Mike Gallacher “acted with the intention of evading the law” under electoral laws in its Operation Spicer report tabled this morning.

Mr Gallacher has maintained his innocence throughout and was hoping to lobby Premier Mike Baird to return to cabinet in the wake of the report.

Mr Baird has ruled out the return of former police minister Mike Gallacher to cabinet, or the parliamentary Liberal party, after the ICAC delivered what the Premier described as “stark” findings

“Mike (Gallacher) will not be returning to cabinet. Obviously those findings are quite stark and he will not be returning to cabinet,” Mr Baird said.

“I have spoken to him, yes, and no, he will not be returning to the parliamentary party.”

Mr Baird said Mr Gallacher had “paid a heavy price”, and he would not push him to resign from parliament altogether.

“Engaged in serious corrupt conduct” ... Former NSW Ports Minister Joe Tripodi
“Engaged in serious corrupt conduct” ... Former NSW Ports Minister Joe Tripodi
Recommended referral to the DPP for possible charge ... Ex-MP Andrew Cornwell and wife Samantha Brookes
Recommended referral to the DPP for possible charge ... Ex-MP Andrew Cornwell and wife Samantha Brookes

The report also has found that former Charlestown MP Andrew Cornwell and his wife Samantha Brookes should be referred to the DPP for possible charge for giving false or misleading evidence.

Former minister Chris Hartcher should also be referred to the DPP for consideration for prosecution for an “offence of larceny”.

Those former MPs found to have “acted with the intention of evading the election laws” relating to political donations include Andrew Cornwell, Garry Edwards, Mike Gallacher, Chris Hartcher, Tim Owen, Chris Spence and Craig Baumann.

As The Daily Telegraph revealed this morning, the ICAC was restricted from making corrupt conduct findings over electoral law breaches alone by the Baird government’s new ICAC legislation.

Cabinet Secretary Senator Arthur Sinodinos, who was chair of the Liberal party’s finance committee and party treasurer when illegal developer donations were being accepted, appears to have escaped any criticism.

Recommended charge of larceny be considered ... Ex-MP Chris Hartcher
Recommended charge of larceny be considered ... Ex-MP Chris Hartcher
Named ... Darren Webber
Named ... Darren Webber
Named ... Ex police minister Mike Gallacher
Named ... Ex police minister Mike Gallacher

Mr Sinodinos said he was pleased the ICAC made no findings against him in the Spicer report.

“As I have consistently said, I was only called as a witness by the ICAC,” he said.

“I gave my evidence and respected the process throughout. Although I have long anticipated ICAC’s report, the process has been personally difficult and it has taken its toll on me and my family.

“I now look forward to getting on with the job of helping to provide the good government and economic leadership that Australia needs and deserves. I do not intend to make any further comment on the content of the report.”

The report found “there is insufficient evidence to conclude that others in the hierarchy of the NSW Liberal party, apart from (chief fundraiser) Mr (Paul) Nicolaou and me (Simon) McInnes were knowingly involved in the channelling of donations to the NSW Liberal Party through the Free Enterprise Foundation”

“The Commission is of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Mr Hartcher for an offence of larceny in relation to his dealings with the three bank cheques payable to the NSW Liberal Party totalling $4,000,” the report found.

Named ... Craig Baumann
Named ... Craig Baumann
Named ... Chris Spence
Named ... Chris Spence

The report found Mr Tripodi acted corruptly by providing Buildev executive Darren Williams, with a Treasury report, in a bid to get a coal loader project up and it says he should be charged over it.

It also found former Port Stephens MP Craig Baumann failed to disclose almost $80,000 in donations from Hunter Valley developers Hilton Grugeon and Jeff McCloy before the ban on developer donations, and “entered into an arrangement” with both developers to “disguise” the donations from the Election Funding Authority by paying them through his own company.

It also finds Mr Baumann avoided disclosing his company paid $100,000 into his own campaign by falsely saying his accountant made the donation.

Named. Garry Edwards
Named. Garry Edwards
Named ... Bart Bassett
Named ... Bart Bassett

Former Londonderry MP Bart Bassett was found to have solicited an illegal donation of $18,000 from Nathan Tinkler’s development company Buildev ahead of the 2011 state election, which was sent through the Free Enterprise Foundation.

ICAC found the money was used to purchase a “key seats package” for Mr Bassett, and said Mr Basset “was aware at the time he solicited the political donation that Buildev was a property developer and knew it was not able to make a political donation and that he was not able to accept a political donation from a property developer”.

The ICAC failed to make a corruption finding against businessman Nathan Tinkler who was embroiled in the illegal donations affair.

The report says Counsel Assisting had recommended a corruption finding against Mr Tinkler for “seeking to bribe Ms (Labor MP) Jodi McKay.”

ICAC failed to make a corruption finding against businessman Nathan Tinkler
ICAC failed to make a corruption finding against businessman Nathan Tinkler

“The Commission declines to make such a finding. The whole of the evidence surrounding Mr Tinkler clearly establishes some general attitude that, wherever possible, he wanted the gratitude of politicians.

“The evidence falls short of satisfying the Commission that Mr Tinkler was intending to induce Ms McKay to act contrary to her public duty.”

Former Newcastle MP Tim Owen was also found to have accepted three $10,000 cash donations from Newcastle developer Jeff McCloy, and the commission found Mr Owen “was aware” of the ban on property developer donations, the need for accurate disclosure and caps on political donations.

No adverse finding ... Eric Roozendaal
No adverse finding ... Eric Roozendaal
Cash donation ... Ex-MP Tim Owen
Cash donation ... Ex-MP Tim Owen

ICAC also found a further $60,000 was donated in services to Mr Owen’s campaign, including staff costs and advertising, with the funds coming from illegal donors.

The Commission also made no adverse finding or comment against former Labor treasurer Eric Roozendaal, who was accused at the Commission of trying to help Mr Tinkler and Buildev’s coal loader proposal improperly.

“While Mr Roozendaal’s support for the Buildev proposal was contrary to the weight of the advice he received, the Commission is not satisfied on the available evidence that he was motivated by an improper purpose.”

Original URL: https://www.dailytelegraph.com.au/news/nsw/lib-mps-acted-with-intention-to-evade-the-law-icac-finds/news-story/932b538384930ca7a72b439ce11e192a