Foreign Correspondence

[fuagf]

"Corruption NSW" Two NSW Liberal MPs stand aside from the party following ICAC revelations on campaign funding

By state political reporter Sarah Gerathy August 6, 2014, 3:15 pm

[.. image i wish i could figure out how to reproduce ..]
Newcastle Liberal MP Tim Owen announced during the last ICAC hearings that he would not recontest the 2015 state election. ABC

Two more New South Wales Government MPs have stood aside from the parliamentary Liberal Party after explosive revelations at the Independent Commission Against Corruption (ICAC) hearing into campaign funding.

Premier Mike Baird has accepted the decision of Newcastle MP Tim Owen and Government Whip and Member for Charlestown Andrew Cornwell to move to the crossbenches while the inquiry continues.

Allegations that illegal donations from developers were used to bankroll Mr Owen's election campaign in 2011 brought into question the validity of the poll's results, ICAC heard.

In his opening address, counsel assisting the inquiry Geoffrey Watson SC said there were serious irregularities in the funding of the Liberal MP's campaign.

He also revealed that the funding of the neighbouring seat of Charlestown, which is now held by Government whip Andrew Cornwell, was being investigated.

"The evidence acquired so far clearly shows serious irregularities in the way those campaigns were conducted," Mr Watson said.

"Given what went on, a real question arises as to the validity of the result of the election in the seat of Newcastle."

The hearing today took an unexpected twist when Mr Watson revealed Mr Owen's campaign manager and Newcastle lawyer Hugh Thomson had helped expose the corrupt motivation behind the campaign.

ICAC was told Mr Thomson admitted to being involved in an illegal donations scheme, in exchange for protection from prosecution.

Mr Watson also told the hearing that the former police minister Mike Gallacher knew about the illegal funding arrangements in Newcastle and in fact suggested some of them.

He says the former energy minister Chris Hartcher also knew what was going on.

Mr Watson told ICAC that the Government whip, Mr Cornwell, admitted Newcastle Mayor Jeff McCloy arranged a meeting in his car and handed over $10,000 in cash.

He said while there was no evidence Mr Cornwell gave any preferences to the Mayor, his actions were unwise but that was due to inexperience.

In a statement, Premier Mike Baird said he had accepted Mr Owen's and Mr Cornwell's decisions.

"I have accepted the decisions of Tim Owen and Andrew Cornwell to stand aside from the parliamentary Liberal Party and relinquish any parliamentary positions they currently hold," a statement said.

"I make no judgement regarding the outcome of Operation Spicer.

"However, it will take time for the allegations to be resolved, and I am not prepared to allow this to become a distraction for the party or the Government."

Nathan Tinkler was called 'the big man'

--- insert ---
Nathan Tinkler sells Patinack Farm
http://www.theherald.com.au/story/2296809/nathan-tinkler-sells-patinack-farm/
---

The corruption watchdog has heard that businessman Nathan Tinkler was known as "the big man" by Liberal party figures looking to secretly bankroll the 2011 campaign for the seat of Newcastle.

Mr Tinkler and his development firm Buildev are among those banned donors who are accused of secretly donating to the campaign of Newcastle Liberal MP Tim Owen.

At the time Buildev was lobbying to build a coal loader in the Port of Newcastle.

Mr Watson has told the hearing that the story of what happened in Newcastle in 2011 is complex, but "a number of the threads tie back to one person, Nathan Tinkler".

Mr Watson said the evidence shows "it was he who had the ultimate control " and "who made the decision to fund the illegal activities".

He said there was also evidence implicating Mr Tinkler in making a number of large payments for use by the Liberal Party.

Mr Watson said that also involved Mr Gallacher and Mr Hartcher.

He read out a text message from Mr Thomson to Mr Gallacher, which asked about a $120,000 payment from "the big man".

Mr Watson said that referred to Mr Tinkler, who was also called "the big fish" by Mr Gallacher.

Mr Tinkler and Buildev have also been accused of involvement in a smear campaign against the then Labor MP for Newcastle, Jodi McKay.

The commission heard it was not just the Liberal Party that was involved in such activities.

"The Labor party was, through a couple of its politicians, involved as well," said Mr Watson.

He said the inquiry would examine the activities of two former Labor MPs, Joe Tripodi and Eric Roozendaal.

Mr Watson said the evidence suggested that each man improperly took steps to directly help Buildev.

A protege of Joe Tripodi, Ian MacNamara, who is now Opposition Leader John Robertson's chief of staff, has also been potentially implicated in the smear campaign.

NSW Government whip to appear at ICAC over 'slush funds'

Mr Cornwell, his property-developer father and a Liberal Party campaign manager are all due to appear in the witness box as the ICAC inquiry before Commissioner Megan Latham continues.

The corruption watchdog is investigating alleged Liberal Party slush funds and donations for political favours.

Operation Spicer had adjourned for two months after three-and-a-half weeks of explosive public hearings in May rocked the Government and claimed several political scalps, including that of then-premier Barry O'Farrell.

This next phase of the inquiry, which is expected to run for at least three weeks, will largely focus on alleged dodgy dealings in the seat of Newcastle in the lead up to the 2011 election.

It is examining whether Mr Owen's campaign was secretly bankrolled by donations from banned donors including Buildev and its majority shareholder Nathan Tinkler, Newcastle Lord Mayor and property developer Jeff McCloy and Hunter Land founder Hilton Grugeon.

Mr Owen announced during the last hearings he would not recontest his seat at next year's election because he now believed it was "highly likely" that prohibited donors had contributed to his campaign, although he insisted it was without his knowledge.

Among those scheduled to give evidence at the ICAC this week were Charlestown MP and Government whip Andrew Cornwell, who was the branch president of the Liberal Party in Newcastle before stepping aside to run for his seat in 2011.

His wife Samantha Brookes and father Brien Cornwell, who was a local property developer and a volunteer on Mr Owen's campaign, will also appear in the witness box.

Rodney Bosman, who ran the Liberal Party's Central Coast and Hunter campaigns in the 2011 election, has now been sworn in. He is the first witness to appear.

Former NSW ministers' actions under scrutiny

The spotlight will also once again be on former NSW energy minister Chris Hartcher and former police minister Mike Gallacher.

ICAC will examine whether the pair solicited and received donations from prohibited donors for use in the Liberals 2011 state election campaign, including in the seat of Newcastle.

It will also look at whether they used their power and influence, or attempted to use their power and influence, to do favours for Liberal Party donors.

This inquiry has already claimed the ministerial careers of both men.

Mr Gallacher resigned during the last hearings after counsel assisting the ICAC Geoffrey Watson SC said there was "strong prima facie evidence" implicating him in serious electoral funding irregularities.

Mr Hartcher quit the frontbench in December 2013 when the ICAC raided his Central Coast office.

His fellow Central Coast MPs Darren Webber and Chris Spence had already been sitting on the crossbench after their offices were raided earlier in the year.

Operation focus on Buildev, Tinkler and Free Enterprise Foundation

Operation Spicer began as an investigation into an alleged Liberal Party slush fund Eightbyfive that was being run out of Mr Hartcher's office.

It has since broadened its scope to look at various ways Liberal Party figures were allegedly skirting laws that banned donations from developers in the lead up to the 2011 state election.

One of the organisations set for more scrutiny in the latest round of public hearings is the Liberal Party-linked Free Enterprise Foundation.

ICAC will examine whether members or associates of the Liberal Party used the Free Enterprise Foundation as a means of receiving and disguising banned donations in the lead up to the 2011 campaign.

It will also look at whether certain companies and persons, including Buildev and Mr Tinkler, used or attempted to use the Free Enterprise Foundation as a means of making donations to the Liberal Party with the intention of attempting to improperly influence certain members of Parliament.

The inquiry has previously heard evidence that the Free Enterprise foundation was used to "rinse" donations from banned donors, and that the NSW Liberal Party's finance director Simon McInnes and the former head of the party's chief fundraising arm, Paul Nicolaou, were in on the scheme.

In his opening address at the first set of hearings, Mr Watson ominously asked: "Who was responsible for this misuse of the Free Enterprise Foundation, who else knew about it inside the Liberal Party?"

He said he would try to get to the bottom of that question.

https://au.news.yahoo.com/nsw/a/24641068/two-nsw-liberal-mps-stand-aside-from-the-party-following-icac-revelations-on-campaign-funding/