Josh Frydenberg’s citizenship case continues over costs; Phil King launches mysterious suit against Fairfax

Treasurer Josh Frydenberg’s citizenship case has long been settled but the issue of costs continues. Picture: NCA NewsWire/Andrew Henshaw

The matter of Josh Frydenberg’s citizenship was resolved in the Federal Court more than 18 months ago, but still the personal issue burns for the Member for Kooyong.

Margin Call hears that there is the not insubstantial matter of costs relating to constituent and climate activist Michael Staindl’s legal challenge in March last year questioning the Treasurer’s eligibility to sit in the nation’s parliament yet to be ­finalised.

And we’re talking a sum amounting to potentially hundreds of thousands of dollars.

The Federal Court sitting as the Court of Disputed Returns ruled on a Section 44 challenge brought by Staindl, a voter in Frydenberg’s electorate in Melbourne’s leafy eastern suburbs.

Michael Staindl leaves the Federal Court in Melbourne in early 2020. Picture: AAP Image/David Crosling.

The court’s full bench found Frydenberg was not a Hungarian citizen, with prestigious law firm Arnold Bloch Leibler representing Frydenberg in the high-profile case last year on a pro bono basis.

How very kind of the likes of the firm’s managing partner Henry Lanzer and senior partner Mark Leibler.

Staindl was ordered to pay the costs of the case, but still hasn’t.

So ABL is back on the case chasing costs, still working pro bono for Frydenberg as he gears up for a likely federal budget and then election next year.

Not long ahead of the case being heard, 68-year-old Staindl in November 2019 transferred ownership of his Hawthorn home to his wife Kay Wennagel, although he told The Australian at the time the change was due to personal issues with his wife.

The transfer was made for no money, with corporate records revealing Staindl still lives at the Hawthorn home and shares ownership and is a co-director of a corporate entity with Wen­nagel.

Meanwhile, flood damage to the Treasurer’s electorate office amid Melbourne’s horror weather on November 6 means Frydenberg’s Hawthorn base will remain closed for some weeks yet.

Torrential rain resulted in the office being flooded, damaging carpets and other fittings. Extensive repairs are under way.

–

A regal legal battle

Something sure has got Regal Funds Management’s Phil King worked up, the chief investment officer of the $3bn fund filing a lawsuit against Fairfax Media in recent months.

But just what the case ­pertains to, we can’t be certain, King and brother Andrew, with whom he started the fund, at pains to keep the details under wraps.

Whatever it is, the influential stockbroker hasn’t been shy in calling in reinforcements, drafting in gun lawyer Rebekah Giles – best known for her recent representation of former attorney-general Christian Porter in his defamation case against the national broadcaster – to run his case.

Regal’s Philip King has a bone to pick with Fairfax, we just can’t be sure what it is. Picture: Britta Campion

So far, she’s succeeded in having key documents suppressed, including her own affidavit sworn in late September, as well as King’s outline of submissions, both “on the grounds that the order is necessary to prevent prejudice to the proper administration of justice”.

AFR journalists Neil Chenoweth and Liam Walsh are both mentioned as defendants to the case, though they are also bound by the injunction, which notes that they are restrained from “using, publishing or causing to be published, or otherwise disclosing or causing to be disclosed the confidential information”.

Illustration: Rod Clement

All of which sure goes a way to building the suspense for the forthcoming Supreme Court directions hearing next week before Justice John Sackar, sure to garner just as much interest as his usual appearance before the Sohn stockpicking conference the following week.

Unsurprisingly, neither King nor his fund responded to Margin Call for requests for comment.

–

A time for giving

With Melbourne’s social set slowly emerging from hibernation, so the city’s philanthropic scene is also cautiously thawing.

Leading the pack, and after his annual Valentine’s Gala in aid of the Save a Child’s Heart Foundation was called off earlier this year, is tech billionaire Alex Waislitz, swapping his usual fanfare at the likes of the Crown casino rooftop for a more toned-down cocktail affair on Wednesday night at South Yarra’s Osborne Hotel.

Alex Waislitz during the first lockdown in Melbourne. Picture: Aaron Francis

But despite the time between drinks, Waislitz showed he still has plenty of heavy hitters on his rolodex, guests including the likes of Melbourne IVF founder and long-time backer John McBain and Cannacord chief Marcus Freeman, with appearances also from plenty of Waislitz’s investee companies, old and new.

Credit Clear founder Lewis Romano and his CEO David Hentschke both got the call-up, fixtures in the billionaire’s Thorney Investment portfolio since 2018. It comes as no surprise that the fintech’s former head and co-founder Trent McKendrick didn’t get a look in, though he was probably caught up with shaking the tin for his own rival firm anyway.

When it comes to dinner party chat, it was Waislitz’s more recent ventures in crypto that were keen topics of conversation, especially as the rollercoaster of bitcoin continues.

Founder of crypto fund Apollo Capital, Henrik Andersson, as well as Banxa chief Holger Arians were all too keen to share their thoughts on the latest moves, themselves probably more interested in getting tips on management fees from L1 Capital’s Rafi Lamm.

There’s a topic you don’t get on virtual drinks.

–

By the book

Best practice disclosure appears a fresh priority for Nationals senator for Victoria Bridget McKenzie now that she’s back in the fold as minister for all things regional and a member of the national cabinet.

Having done her time in purgatory following the $100m sports rorts scandal, McKenzie looks to be doing things by the book these days, including disclosures to the Senate’s register of interests.

Senator for Victoria Bridget McKenzie. Picture: NCA NewsWire/Gary Ramage

McKenzie is getting right down to the nitty gritty of gifts, this week declaring receipt of the goodie bag that was sent to a swag of her parliamentary colleagues by ABC boss David Anderson in recent weeks.

The largesse was sent to pollies following the cancellation of the public broadcaster’s annual showcase in Canberra. As revealed by our Strewth colleague Alice Workman, the song-and-dance affair is usually held in September or October but was cancelled for the second year running due to Covid.

Anderson decided to send the goodie bag anyway – it included magazines, ABC socks, a book and other promotional material.

The gift was this week declared by McKenzie, whose portfolio includes regional communications and who only this week proposed a push to give the broadcaster more of a regional flavour, despite the gift’s value being well below the disclosable threshold.

However, Margin Call notes colleagues – including the ABC’s biggest fan and senator for NSW Andrew Bragg – haven’t been so forthcoming. Nothing from Communications Minister Paul Fletcher or his opposition counterpart Michelle Rowland either.

Maybe the socks didn’t fit.

Josh Frydenberg, Michael Staindl

Phil King

Alex Waislitz

Bridget McKenzie