Audit details released over Premier’s chief of staff David Barbagallo
Auditors will investigate whether Annastacia Palaszczuk’s top staffer properly managed conflicts of interest.
Auditors Ernst & Young will investigate whether Premier Annastacia Palaszczuk’s top staffer properly managed conflicts of interest over a state government decision to invest in a company he co-owns.
The Queensland government is in damage control after revelations last week that Ms Palaszczuk’s chief of staff David Barbagallo had a significant shareholding in Fortress Capstone Pty Ltd, which received $267,500 in taxpayer-funded financing last year.
Mr Barbagallo is a founding director of Fortress Capstone, and he and his wife, Land Court judge Fleur Kingham, own about $300,000 worth of shares in the company, including $100,000 in shares bought in July 2017, when the company applied for the government financing.
The financing was awarded from the government’s $80m Queensland Business Development Fund, overseen by an independent panel of government-appointed entrepreneurs and administered by the government’s investment arm QIC.
Ms Palaszczuk was forced to order an independent audit into the deal after the Opposition blindsided her with questions about it at budget estimates hearings.
The Premier’s department tonight released the terms of reference that Ernst & Young will use to review the matter.
“Ernst & Young will perform an independent review of the process as follows:
• The chronology and decision-making process for the investment made by the Fund in relation to Fortress Capstone Pty Ltd, including:
■ The assessment and approval of funding in line with documented processes (including but not limited to):
– Receipt of the funding application by the Fund
– Assessment of the application in line with prescribed criteria
– Approval process for the awarding of funds
• The management of potential conflicts of interest throughout the application and decision-making process.
• Compliance with the Ministerial and Other Office Holder Staff Act 2010 and Ministerial Handbook in relation to the declaration of interests and disclosure of conflicts of interests processes specifically in relation to Fortress Capstone Pty Ltd.”
The Premier’s department has set a deadline of August 30 for the work to be completed.
Ms Palaszczuk has refused to stand aside Mr Barbagallo while EY conducts the audit. She says he has done nothing wrong and properly declared his stake in the company on his pecuniary interest register, which she has declined to publicly release.
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