By Sarah McPhee
A secretly recorded phone call between former NSW Liberal MP Daryl Maguire and a councillor about the potential purchase of a multimillion-dollar Sydney property by a Chinese company with “mega-money” is central to allegations he misled a corruption inquiry, a court has heard.
Maguire, the former member for Wagga Wagga, has pleaded not guilty to giving misleading evidence as a witness before the Independent Commission Against Corruption on July 13, 2018, in relation to Operation Dasha, which probed Canterbury City Council.
Daryl Maguire (right) arrives at Downing Centre Local Court on Monday.Credit: Nick Moir
Prosecutors allege Maguire misled the inquiry by giving evidence that his communications with then-Canterbury councillor Michael Hawatt about the sale of timber yard-turned-development site “Harrisons”, on Canterbury Road in Campsie, were not accompanied by an expectation Maguire would receive a financial benefit.
Maguire greeted waiting cameras as he arrived at Downing Centre Local Court on Monday for the start of his three-day hearing.
“It’s nearly seven years since I was invited by ICAC to give evidence as a witness and not as a person of interest,” the 65-year-old said outside court. “I’ve always maintained that I did not give misleading evidence. I answered every question to the best of my ability.”
Prosecutor Philip Hogan told Magistrate Clare Farnan a covertly recorded call from Maguire to Hawatt on May 9, 2016, was “central” to the Crown case. He said it was “clearly” an indication the pair’s communications about the Harrisons site involved an expectation Maguire would benefit financially.
Hogan said Maguire, at the time, was “active in facilitating trade and investment on behalf of Chinese investors”, particularly on behalf of Chinese company Country Garden.
In the phone call, played to the court, Maguire asked Hawatt: “What have you got on your books? Have you got anything that’s DA [development application] approved?” Hawatt replied that he had a 300-unit site opposite Canterbury Hospital for around $160,000 each.
Maguire said, “Can you do me a favour? I need a few things to feed my friends”, and that they wanted “30 projects rolling”.
In the call, Maguire asked about the margin for the $48 million property, to which Hawatt said it was 1.5 to 2 per cent. Maguire said that was “better than nothing”, but at $170,000 per unit there would be an “extra $3 million in there”.
Hawatt said he was meeting the seller at 4pm. Maguire said: “I don’t want to f--- around.”
“Have you got plans? Have you got the whole thing already done? Can you get it all to me ASAP? Is that the only one you’ve got?” Maguire asked.
“My client is mega-big and got mega-money.”
Maguire said they were “hungry for DAs”, all in Sydney.
“1.5 per cent isn’t enough divided by two, if you know what I’m talking about?” Maguire said to Hawatt. “Three per cent is a lot better.”
Hogan said the comment made about the percentage was of “particular significance”, alleging it demonstrated Maguire “believed that he and Mr Hawatt would share a commission if they identified property that could be purchased by Country Garden”.
The prosecutor said Maguire’s initial evidence to the corruption watchdog was that he had a “desire to assist his friend” Tim Lakos, a representative from Country Garden, and that he “had no other reason to assist, and didn’t have in his mind the thought that he would derive a benefit from Country Garden”.
Hogan said Maguire effectively “changed his evidence” after the covert calls were played to him at the 2018 inquiry, and alleged a “fair reading” of that evidence was an acknowledgment by Maguire that his communications with Hawatt “were accompanied by an expectation that he would receive a financial benefit”.
The court heard the start of Maguire’s three-hour ICAC testimony, during which counsel assisting the commission, David Buchanan, SC, asked Maguire whether he had been made to believe “by anyone” that he would receive a benefit if he identified properties for Country Garden to buy and develop.
“No, no,” Maguire replied.
Asked whether he thought he might derive a benefit from Country Garden, Maguire said “not me, personally” and that he was thinking the company may help to develop infrastructure in Wagga Wagga.
In response to Buchanan’s questions about his use of the words “I need a few things to feed my friends” in the phone call with Hawatt, and whether “need” suggested a “mercenary relationship”, Maguire said he was a “bushy” and “bushies” tend to use words in a way that may not be seen as correct.
Maguire’s barrister, Rebecca Gall, said the defence’s position was “the Crown cannot prove the charge or the elements, and a verdict of not guilty should be entered by the court”.
Maguire was the Liberal member for Wagga Wagga from 1999 to July 2018, when he quit the party. His secret relationship with former NSW premier Gladys Berejiklian was revealed during separate ICAC hearings into his business dealings while in parliament.
Hawatt has pleaded not guilty to three counts of giving false or misleading evidence at a public inquiry and is due to face a hearing in March. Maguire’s hearing continues on Tuesday.
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