Sydney Uni staffer’s ‘sleepless night’ over Fairfax Media Chau Chak Wing article

A uni director tells court he feared for the institution’s reputation after Fairfax published an article about donor Chau Chak Wing.

Businessman Chau Chak Wing leaves the NSW Federal Court.

The head of the University of Sydney’s museums said he had “sleepless nights” and was worried about the university’s reputation after the Sydney Morning Herald published an article alleging the Chinese billionaire who gave them $15 million was involved in an international bribery scandal.

David Ellis, the director of museums and cultural engagement, gave evidence in Chau Chak Wing’s defamation case against Fairfax Media and its former journalist, John Garnaut, in a Sydney Federal Court today. He was one of several witnesses - including Mr Chau’s daughter Winky - who have testified in defence of Mr Chau.

Mr Ellis said he had just signed a deed of gift for $15m with Mr Chau towards the university’s new Chau Chak Wing museum - construction of which has recently begun - when he was called about the article on October 16, 2015.

“I received a flurry of phone calls,” he said. “We had only just signed a deed of gift and the new museum was carrying his name. I was concerned about the reputation of the university. Put it this way, I had a few sleepless nights.”

Mr Ellis said he had done his research about Mr Chau before a series of meetings about a “generous gift” of $15m for the museum.

“As soon as his name was mentioned to me in 2014, I started to do some investigation,” he said.

“Dr Chau struck me as one of Australia’s most generous philanthropists. He was a very astute businessman, one of the quiet givers.”

Journalist John Garnaut.

The court also heard how Mr Chau was “really upset” and remains “stressed and withdrawn” as a result of an article published by Fairfax Media, which linked him to a United States investigation into allegations of bribery of a United Nations official.

Ms Chow, Mr Chau’s Australian-educated daughter who worked for former NSW premiers Bob Carr and Morris Iemma, said she called her father when the article went online on October 16, 2015.

The article alleged Mr Chau was an unnamed Chinese businessman identified only as CC-3 in an indictment over charges of bribery of the former president of the United Nations general assembly, John Ashe.

“I summed it up. I said there are some allegations made and the link between him and CC-3,” Ms Chow said. “I have no idea what’s happening. I just tell him what’s in the article.”

“How did he respond?” barrister Bruce McClintock SC, acting for Mr Chau, asked.

“He was quiet for a bit and was really upset,” Ms Chow replied. “He said he had done all the good things, why is this allegation written about him?… He was really stressed and really withdrawn and it was not him. I haven’t seen him like this before.”

Mr Chau has taken action against Fairfax Media and Garnaut in the Federal Court, alleging the article suggested he had bribed Mr Ashe, deserved to be extradited to the US, and had built his Australian business empire on bribes to officials.

Today, the former vice chancellor of the University of Technology, Sydney, professor Ross Milbourne, as well as general practitioner Dr Tony Chong Maw Goh and the University of Sydney’s David Ellis gave character evidence about Mr Chau.

“We did a lot of due diligence around Dr Chau,” Mr Milbourne, who helped organise the construction of UTS’s Chau Chak Wing building following a $25 million donation, said. “I knew a lot people who knew him, and convinced myself that he was a very honourable man.”

Dr Goh said Mr Chau had an “excellent reputation” and that the article “has no substance in publishing those facts which are not substantiated, and that has very badly damaged the reputation of Dr Chau”.

Fairfax Media has insisted the article was “good journalism” and that it was reasonable to publish it under the circumstances.

The hearing, before Justice Michael Wigney, continues.