Palaszczuk ex-staffer still under CCC scrutiny

Queensland’s corruption watchdog will continue to probe the business affairs of Annastacia Palaszczuk’s former chief of staff.

Annastacia Palaszczuk’s former chief of staff David Barbagallo. Picture: AAP

Queensland’s corruption watchdog will continue to probe the business activities of Annastacia Palaszczuk’s former chief of staff David Barbagallo despite his resignation from the public service.

Ms Palaszczuk announced Mr Barbagallo’s exit on Friday but ­insisted it had nothing to do with the Crime and Corruption Commission’s assessment of his part-owned company Fortress Capstone receiving $267,500 in government financing last year.

The Australian is aware of several recent examples of public servants whose departures from the bureaucracy caused the CCC to inform complainants that their ­allegations would no longer be able to be investigated.

But the CCC on Monday confirmed Mr Barbagallo’s resignation had not thwarted its assessment.

“The CCC’s assessment of allegations of corrupt conduct relating to the Premier’s chief of staff is continuing,” a spokesman said.

The watchdog is considering the results of an unreleased Ernst & Young audit, commissioned by the Premier’s director-general, into the Fortress Capstone funding before deciding whether to launch a full investigation.

The Palaszczuk government’s Queensland Business Development Fund bought Fortress Capstone shares worth $267,500 in February last year, to help the company develop a cruise-tracking smartphone app. Mr Barbagallo is a founding director of the private company, and he and his wife, Land Court president Fleur Kingham, own about $300,000 worth of its shares.

The Australian revealed in July that Mr Barbagallo had increased his and Judge Kingham’s stake in Fortress Capstone by $100,000 in July 2017, at the same time the company applied for QBDF investment.

He has denied any wrong­doing. Mr Barbagallo was headhunted to lead Ms Palaszczuk’s office in May 2017. The Premier said on Friday that he first indicated he wanted to leave last November, but she asked him to stay. Ms Palaszczuk said he then advised her in June — the scandal broke in July — that he wanted to leave in October. She said his resignation “by no means says he has done anything wrong”.

Mr Barbagallo was in the top job for two years and three months and will not receive a severance payment or ex-gratia sum. A Department of Premier and Cabinet spokesman said he would be paid his leave entitlements.

“The director-general provided the (Ernst & Young) report to the CCC. Mr Barbagallo has not seen the report,” the spokesman said.