Former New South Wales Premier Gladys Berejiklian has responded after being found to have acted corruptly during a five-year secret relationship with disgraced former MP Daryl Maguire.
The ICAC’s report into the conduct of Berejiklian was handed down on Thursday morning, more than a year and a half after the former premier resigned under a cloud of corruption allegations.
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The lengthy public hearing focused on two grants — a $5.5 million upgrade to the Wagga Wagga Clay Target Club and a $20.5 million plan to build a recital hall for the Riverina Conservatorium of Music — for which Maguire lobbied.
On Thursday, the report found Berejiklian had committed “serious corrupt conduct”.
However, the commission did not recommend that the Department of Public Prosecution pursue criminal charges against the former premier.
In a statement after the findings, Berejiklian said “serving the people of NSW was an honour and privilege”.
She also hinted at a potential appeal.
“At all times I have worked my hardest in the public interest,” she said.
Nothing in this report demonstrates otherwise. Thank you to members of the public for their incredible support. This will sustain me always. The report is currently being examined by my legal team.”
The report found Berejiklian had exercised her “official functions in relation to funding”.
“The Commission finds that Ms Berejiklian engaged in serious corrupt conduct by breaching public trust in 2016 and 2017 through exercising her official functions in relation to funding promised and/or awarded to Australian Clay Target Association (ACTA), without disclosing her close personal relationship with Mr Maguire, when she was in a position of a conflict of interest between her public duty and her private interest, which could objectively have the potential to influence the performance of her public duty,” the report said.
“The Commission also finds that in the same period, Ms Berejiklian partially exercised her official functions, in connection with funding promised to ACTA, influenced by the existence of her close personal relationship with Mr Maguire.”
The report found Maguire had lobbied for grants of public money for the Riverina Conservatorium of Music (RCM).
“In 2018, Ms Berejiklian also partially exercised her official functions, influenced by the existence of her close personal relationship with Mr Maguire, or by a desire on her part to maintain or advance that relationship, in connection with funding promised and awarded to a proposal to build a recital hall for the RCM (RCM Stage 2),” it said.
“The Commission finds that she breached public trust by exercising her official functions in relation to decisions concerning the RCM proposal which she knew was advanced by Mr Maguire.”
The ICAC said it was seeking the advice of the Director of Public Prosecutions (DPP) on whether any prosecution should be commenced for Maguire but not for Berejiklian.
“The DPP determines whether any criminal charges can be laid and conducts all prosecutions,” it said.
“The Commission is of the opinion that consideration should be given to obtaining the advice of the DPP about the prosecution of Mr Maguire, G8wayInternational director Phillip Elliott and Maggie Wang, an associate of Mr Maguire, for various offences.
“The Commission is not of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Ms Berejiklian for any offence.”
Berejiklian may appeal the findings.
The Commission has made 18 recommendations in regards to addressing codes of conduct for MPs, improving their training and that of their staff, and improving the integrity of grant schemes.
Premier responds
Meanwhile, NSW Premier Chris Minns said the ICAC report has taken “way too long” to be handed down.
“I think that has been generally recognised across the political spectrum in NSW,” he told reporters on Thursday morning.
“The second point here is that nothing in this report takes away I don’t think from premier Berejiklian’s handling of the COVID emergency which I still regard as being excellent.
Minns added it was important for all politicians in NSW and anyone in public positions to “understand we must manage conflicts of interest and declare them”.
“That has been a fundamental principle since the foundation of the NSW parliament,” he said.
“It remains the case today and my government takes that warning incredibly seriously.
The premier said he would be “working with parties across the political spectrum” to ensure there are “appropriate and reasonable steps to strengthen the ICAC in NSW”.
The leader of the NSW Liberal party Mark Speakman said in a statement Berejiklian had led with “strength and determination”.
“The Independent Commission Against Corruption (ICAC) does not suggest that there has been any arguable breach of the criminal law by the actions it investigated by Ms Berejiklian nor was it suggested in the inquiry that Ms Berejiklian received any personal financial benefit,” he said.
“The delays in providing a report have been unacceptable and should not be allowed to occur again.
“Our community deserves a timelier resolution of investigations undertaken by ICAC, especially when they concern the senior leadership of our state.”
Berejiklian probe
The probe into Berejiklian’s dealings began when the Independent Commission Against Corruption launched inquiries into the disgraced former Liberal MP for Wagga Wagga, Daryl Maguire.
The watchdog investigated whether Maguire used his role as an MP to gain a financial benefit and whether Berejiklian breached the public trust during their five-year secret personal relationship.
While under questioning during public hearings, Berejiklian revealed the pair had been in a long-term, clandestine relationship, describing Maguire as part of her “love circle”.
Neither project faced a competitive tender process and were at times opposed by senior public servants.
An inquiry heard from senior public servants and MPs, many of whom said Berejiklian should have disclosed her relationship to avoid the appearance of impropriety.
But Berejiklian defended her decision to keep the relationship under wraps, saying it wasn’t of sufficient status, despite agreeing the pair loved each other, contemplated marriage and discussed having a child.
Bombshell phone call
Excerpts from several recorded phone calls were played during the inquiry, including one in which Berejiklian told Maguire she would “throw money” at his Wagga Wagga electorate following his resignation.
“I don’t want to argue with you. I just need to go and chill because you’ve stressed me out,” Berejiklian was heard saying.
“All right go and chill — you just throw money at Wagga,” Maguire said.
“I’ll throw money at Wagga don’t you worry about that – lots of it,” Berejiklian then added.
“I’ll throw money at Wagga you’ve just got to do what’s right from your end otherwise you’ll kill me.”
“No, no, it’s fine, I’m batting for you,” Maguire replied. “You just need to know what the right things are — to throw money at Wagga.”
“I already know, you’ve already told me the three top things,” Berejiklian replied.
“Go and give them a stadium,” Maguire said.
“I’ll do that. I’ll do that too. I’ll do that too, don’t worry,” she told him.
“Well, the bureaucrats knocked it all out,” Maguire said.
“Yes but I can overrule them,” Berejiklian assured him.
In another, Maguire told the former premier he had potentially stood to make hundreds of thousands of dollars if land near the site of the new Western Sydney Airport was rezoned.
He boasted the deal would pay off “about half” of his personal debt, to which she replied: “I don’t need to know about that bit.”
‘I’ll fix it’
When Maguire complained projects in his electorate weren’t being appropriately funded, Berejiklian promised to “fix it”, the inquiry heard.
A tapped phone call and text messages were heard by the inquiry, relating to Wagga Wagga Base Hospital.
Maguire is heard complaining that the project, which he says needed $170 million in funding, and Tumut Hospital, which he wanted another $1 million for, were left out of the 2018 state budget.
“That’s two years in a row that we have had no money,” he says in a phone call in May 2018.
Berejiklian replies: “I’ll deal with it, I’ll fix it.”
A second phone call, made two hours later, was then played, revealing Berejiklian had spoken to then Treasurer Dominic Perrottet about the issue and got “$170 million in five minutes” for the hospital.
“I just spoke to Dom and … he goes, ‘No worries’. He just does what I ask him to,” Berejiklian said of then-treasurer Perrottet, her successor as premier.
“I’ve already got you the Wagga hospital … I just spoke to Dom and I said just put the 140 in the budget.
“And he said no worries, he just does what I ask him to.”
Maguire complains that “it’s meant to be 170” to which she says: “Whatever it is, 170 … he’s putting it in whatever it is, OK.”
Berejiklian said she couldn’t recall intervening in the Wagga Wagga Base Hospital project.
– With AAP
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