Besieged Premier Annastacia Palaszczuk branded weak

Annastacia Palaszczuk is standing by her chief of staff in the face of corruption allegations, inciting opposition criticism.

Queensland Premier Annastacia Palaszczuk speaks with chief of staff David Barbagallo during estimate hearings last month. Picture: AAP

Annastacia Palaszczuk is standing by her chief of staff in the face of corruption allegations, inciting opposition criticism that she is “the weakest premier Queensland has ever seen”.

Ms Palaszczuk will be challenged to explain her handling of integrity crises befalling her chief of staff David Barbagallo and her Deputy Premier, Jackie Trad, when parliament resumes on Tuesday.

Queensland’s Crime and Corruption Commission is ­assessing allegations against both: Ms Trad for an undeclared investment property and Mr Barbagallo for his part-owned company receiving $267,500 in state government financing.

The Premier on Monday resisted pressure to immediately dump Mr Barbagallo, after the CCC confirmed that if alle­gations against him were proven, they would amount to corrupt conduct.

“There’s currently an (Ernst & Young) audit being conducted … and my understanding is the director-general is keeping the CCC up to date,” Ms Palaszczuk said. “Let’s take one step at a time; it’s not at that stage at the moment.”

While she has said Ms Trad will be stood aside from her cabinet responsibilities if the CCC launches a formal investigation into her, she would not make the same commitment in relation to Mr Barbagallo.

Opposition Leader Deb Frecklington accused Ms Palaszczuk of being weak. “Labor’s chief of staff cannot use public funds to line his own pockets,” she said. “Annastacia Palaszczuk is the weakest premier Queensland has ever seen … (she) needs to sack her right-hand man and her right-hand woman.”

Both Ms Trad and Mr Barbagallo have separately denied any wrongdoing. The $80 million Queensland Business Development Fund invested $267,500 in February last year in Fortress Capstone Pty Ltd, a company part-owned and co-directed by Mr Barbagallo.

He said he stepped aside from the application process when he was headhunted to lead Ms Palas­zczuk’s office in May 2017, but bought an extra $100,000 in Fortress Capstone shares in July that year, at the same time as the application was lodged. The fund is administered by the Queensland Investment Corporation, the government’s investment arm, of which Ms Palaszczuk is a shareholding minister.

In a letter to the LNP, QIC chief executive officer Damien Frawley said the actual investment decisions were made by the independent panel of entrepreneurs and venture capitalists, and he revealed legal advice was sought each time.

LNP deputy leader Tim Mander said QIC should provide the lawyers’ ­advice to the CCC.