Palaszczuk ‘needs to come clean’: Labor government refuses to release Barbagallo report

Call for Queensland premier to “come clean” as corruption watchdog continues probing former staffer David Barbagallo.

Queensland Premier Annastacia Palaszczuk’s former Chief of Staff David Barbagallo. Picture: Jono Searle/AAP

The Queensland Labor government is refusing to release an audit report into the business activities of Annastacia Palaszczuk’s former chief of staff David Barbagallo as the corruption watchdog today announced it was still probing a taxpayer-funded investment in one of his companies.

The Crime and Corruption Commission (CCC) said that “further inquiries” needed to be made weeks after considering the Ernst & Young audit into the government investment in a company co-founded by David Barbagallo.

Mr Barbagallo suddenly resigned from the premier’s office earlier this month, but insisted it had nothing to do with the CCC’s assessment of his part-owned company Fortress Capstone receiving $267,500 in government financing last year.

The Ernst & Young audit was commissioned by the Premier’s director-general after it was revealed by the state opposition in an estimate’s hearing.

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.

Mr Barbagallo — who has denied any wrongdoing — was headhunted to lead Ms Palaszczuk’s office in May 2017.

In a statement, the CCC said it was still probing the issue but stopped short of announcing an official corruption investigation.

Queensland Premier Annastacia Palaszczuk and her then chief of staff David Barbagallo during estimate hearings in July this year. Picture: Jono Searle/AAP

“The CCC has considered the review report obtained by the Department of the Premier and Cabinet (through an external company) with respect to the grant allocation process and how it related to Fortress Capstone Pty Ltd,’’ the CCC said.

“The CCC considers that further inquiries need to be made in relation to the matter.

“The CCC does not intend to comment further until it has finished dealing with the matter.’’

A spokesman for Ms Palaszczuk said the audit report would be not be released while the CCC was looking into the matter.

Opposition leader Deb Frecklington accused Ms Palaszczuk of ducking questions over the issue, and called for the government to release the audit report.

“The Premier has hid behind this report for months, refusing to answer questions about her then Chief of Staff’s taxpayer funded grant to his business,’’ she said.

“Taxpayers have paid for the EY report, it isn’t confidential and it should be released no questions asked.

“The CCC statement raises more questions than answers including whether this is now a formal corruption investigation into Annastacia Palaszczuk’s office.

“The Premier needs to come clean on what she knew and be open and accountable about this matter.”

A spokesperson from the Queensland Department of the Premier and Cabinet later said the audit will eventually be released.

“As has been previously advised, it is intended that the report, and its cost, will be made public once the entire process is complete,’’ he said.