ICAC public inquiry into Gladys Berejiklian’s conduct as NSW premier

Gladys Berejiklian said she was ‘in shock’ at accusations leveled against her ex-boyfriend in a previously secret ICAC interview.

A year after Gladys Berejiklian revealed she had been in a secret relationship with a disgraced MP, the NSW corruption watchdog has begun public hearings into whether she too breached the public’s trust.

Ms Berejiklian is not scheduled to testify this week, but it was revealed on Monday she sat through a private and compulsory interview with the counsel assisting the Independent Commission Against Corruption on September 18, less than two weeks before she resigned as premier.

The commission was shown a video clip from the interview, where counsel assisting the commission Scott Robertson asked Ms Berejiklian if she suspected the then-Wagga Wagga MP Daryl Maguire had been engaged in corrupt conduct when she sacked him from his role as parliamentary secretary in July 2018.

“I didn't know, I couldn’t make any assumption at that stage, he was professing his innocence and saying it was a misunderstanding,” Ms Berejiklian said.

“I was in shock. I didn't know what to think … I can’t remember what I thought at that time.”

The sacking happened shortly after Mr Maguire was caught giving evidence to a separate ICAC inquiry that was contradicted by a bugged phone call.

Gladys Berejiklian was made to sit through an interview with the ICAC on September 18, less than two weeks before she resigned.

At the time, Ms Berejiklian and Mr Maguire were in a relationship that was kept secret from their colleagues and the public.

In the September 18 interview, Mr Robertson clarified to Ms Berejiklian he wasn't asking whether she “knew” Mr Maguire had engaged in corrupt conduct but whether she suspected so.

Pressed again, Ms Berejiklian answered “no”.

Mr Robertson said the exchange was relevant to one of the allegations the ICAC was investigating.

That is, whether Ms Berejiklian failed in her obligation to report suspicion of corrupt conduct.

Another allegation being investigated is whether Ms Berejiklian engaged in conduct that could “encourage” Mr Maguire‘s allegedly corrupt dealings.

Gladys Berejiklian stepped down as premier on October 1. Picture: NCA NewsWire / Damian Shaw

Mr Robertson referred to an intercepted phone call between the pair that was played before the commission last year. Upon being told about a business deal Mr Maguire tried to make, Ms Berejiklian said: “I don't need to know about that bit.”

“Ms Berejiklian rejected any suggestion she was seeking to blind herself from information that might require her to take action in relation to Mr Maguire‘s conduct,” Mr Robertson said.

The third allegation being investigated is whether the relationship created a conflict of interest that resulted in Ms Berejikian breaching the public’s trust by awarding grants to a clay target association and a music conservatorium in Wagga Wagga.

The ICAC will question senior bureaucrats and top Liberals in the days ahead. Former deputy premier John Barilaro might be called to testify.

First to appear on Monday was Office of Sport director Michael Toohey, who was asked about a 2016 request from the office of then-sports minister Stuart Ayres for an urgent submission to the cabinet‘s expenditure review committee.

The submission was for $6.7m in funding to the Australian Clay Target Association in Wagga Wagga, and Mr Toohey was told it needed to be prepared in just one day.

Daryl Maguire was in a secret five-year relationship with Ms Berejiklian. Picture: Brett Costello

Such a tight deadline was “extremely unusual”, Mr Toohey said.

He also said there was an “inadequate” methodology used to assess whether the benefits to the state would outweigh the cost of the project.

The commission was also shown a press release by Mr Maguire, “prematurely” announcing the shooting centre had been funded and neglecting to mention certain strings that were attached to the money.

Mr Toohey said he was “extremely surprised” by the announcement and that pre-empting the proper funding process would effectively amount to “wedging” the government and pressure it to go through with the funding.

“It’s very, very hard then for the government to do anything but fund the club house,” he said.

The commission was also shown an email referencing an approval by the then-treasurer – Ms Berejiklian – to put the submission on the expenditure review committee agenda.

“The treasurer approved this to go to ERC,” the email read.

Mr Toohey was asked if he would have done anything differently if he knew at the time that Ms Berejiklian and Mr Maguire were in a relationship.

Office of Sport director Michael Toohey answered questions on Monday. Picture: NCA NewsWire / Christian Gilles

“Absolutely ... why were we pushing a grant, an allocation of funds through to a local member based on such scant and inadequate information?” he said.

“And to someone who was in a personal relationship with the treasurer – I can’t see how it’s anything but a conflict of interest.

“What was the rush, why were we doing this?”

Mr Ayres, who was recently elected deputy leader of the NSW Liberal Party, is scheduled to give evidence on Friday. Neither he nor Mr Toohey have been accused of wrongdoing.

Another high-profile Liberal set to testify later in the week is former premier Mike Baird, who also has not been accused of wrongdoing,

The ICAC has not yet said when Ms Berejiklian may testify.

Ms Berejiklian’s legal team, including barrister Bret Walker, were present for the hearing. Picture: NCA NewsWire / Christian Gilles

Ms Berejiklian said in her resignation speech she had “always acted with the highest level of integrity”.

“In all decisions I've ever made as a minister or as premier of NSW, my first consideration has always been the wellbeing and welfare of the people of the state,” she said.

“I state categorically, I’ve always acted with the highest level of integrity. History will demonstrate that I’ve always executed my duties, again with the highest level of integrity, for the benefit of the people of NSW.”