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Investigation Into Nsw Liberal Party Electoral Funding for the 2011 State Election Campaign and Other Matters Icac Report  August 2016

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Investigation Into Nsw Liberal Party Electoral Funding for the 2011 State Election Campaign and Other Matters Icac Report  August 2016 INVESTIGATION INTO NSW LIBERAL PARTY ELECTORAL FUNDING FOR THE 2011 STATE ELECTION CAMPAIGN AND OTHER MATTERS ICAC REPORT AUGUST 2016 INVESTIGATION INTO NSW LIBERAL PARTY ELECTORAL FUNDING FOR THE 2011 STATE ELECTION CAMPAIGN AND OTHER MATTERS ICAC REPORT AUGUST 2016 This publication is available on the Commission’s website www.icac.nsw.gov.au and is available in other formats for the vision-impaired upon request. Please advise of format needed, for example large print or as an ASCII file. ISBN 978-1-921688-69-0 © August 2016 – Copyright in this work is held by the Independent Commission Against Corruption. Division 3 of the Copyright Act 1968 (Cwlth) recognises that limited further use of this material can occur for the purposes of “fair dealing”, for example study, research or criticism, etc. However if you wish to make use of this material other than as permitted by the Copyright Act, please write to the Commission at GPO Box 500 Sydney NSW 2001. Level 7, 255 Elizabeth Street Sydney, NSW, Australia 2000 Postal Address: GPO Box 500, Sydney, NSW, Australia 2001 T: 02 8281 5999 1800 463 909 (toll free for callers outside metropolitan Sydney) TTY: 02 8281 5773 (for hearing-impaired callers only) F: 02 9264 5364 E: [email protected] www.icac.nsw.gov.au Business Hours: 9 am - 5 pm Monday to Friday 2 © ICAC The Hon Don Harwin MLC The Hon Shelley Hancock MLA President Speaker Legislative Council Legislative Assembly Parliament House Parliament House Sydney NSW 2000 Sydney NSW 2000 Mr President Madam Speaker In accordance with s 74 of the Independent Commission Against Corruption Act 1988 I am pleased to present the Commission’s report on its investigation into NSW Liberal Party funding for the 2011 state election campaign and other matters. I presided at the public inquiry held in aid of the investigation. The Commission’s findings and recommendations are contained in the report. I draw your attention to the recommendation that the report be made public forthwith pursuant to 78(2) of the Independent Commission Against Corruption Act 1988. Yours sincerely The Hon Megan Latham Commissioner © ICAC 3 Contents Significant persons in this report 8 The caps on donations and spending 34 Offences under the Election Funding Act 35 Foreword 10 Report completion time 10 Part 2 – The Newcastle container terminal 36 Corrupt conduct findings 12 Chapter 4: The Port of Newcastle 37 The Capacity Framework Agreement 37 Part 1 – Introduction 14 Chapter 1: Investigation summary and results 15 Chapter 5: The old BHP site 39 Corrupt conduct findings 16 The Mayfield site 39 Other findings 16 The Intertrade site 39 Section 74A(2) statements 23 Chapter 6: The Newcastle Port Corporation Action by the NSW Electoral Commission 23 plan for Mayfield 42 Corruption prevention 23 Chapter 7: The Buildev proposal 44 Recommendation this report be made public 24 Buildev and its personnel 44 Chapter 2: Background 25 Buildev’s political dealings 45 How the investigation came about 25 Chapter 8: Mr Tripodi and Mr Roozendaal Conduct of the investigation 25 become involved 47 The public inquiry 26 Chapter 9: The relative merits of a container Chapter 3: The election funding laws 29 terminal and the Buildev proposal 52 The Election Funding Authority 29 Chapter 10: The NSW Treasury report is leaked 55 The disclosure rules 30 The prohibition on property developers 33 4 ICAC REPORT Investigation into NSW Liberal Party electoral funding for the 2011 state election campaign and other matters Chapter 11: Other matters 58 Part 4 – The Central Coast Campaign 80 Mr Tinkler and Ms McKay 58 Chapter 16: The Central Coast 81 The “Stop Jodi’s Trucks” campaign 61 Mr Hartcher’s role 81 The others involved 82 Part 3 – The NSW Liberal Party and the Free Enterprise Foundation 65 Chapter 17: Eightbyfive 84 Chapter 12: Structure of the NSW Liberal Who benefited from the Eightbyfive arrangement? 87 Party 66 Chapter 18: Eightbyfive and Australian Water Chapter 13: The Nicolaou proposal 68 Holdings 89 Chapter 14: The Free Enterprise Foundation 69 Chapter 19: Eightbyfive and Gazcorp 92 What is the Free Enterprise Foundation? 69 The Eightbyfive and Gazcorp arrangement 92 The trustees’ “discretion” 70 Mr Spence’s involvement 93 Was the trust a sham? 72 The purpose of the arrangements 94 Chapter 15: Channelling donations through the Chapter 20: Eightbyfive and Patinack Farm 98 Free Enterpise Foundation 74 The Eightbyfive and Patinack Farm arrangement 98 Some specific donations 74 Mr Webber’s involvement 102 Were the donations “political donations”? 76 How much did Mr Webber receive? 103 Were the donations made on behalf of prohibited donors? 77 Was the arrangement between Eightbyfive and Mr Webber genuine? 104 Who in the NSW Liberal Party was involved? 77 The real purpose of the payments 105 The NSW Liberal Party disclosure 79 ICAC REPORT Investigation into NSW Liberal Party electoral funding for the 2011 state election campaign and other matters 5 Chapter 21: Mr Carter 107 Chapter 27: The seat of Newcastle 132 The “Donations list 2011” and other documents 107 The three $10,000 cash payments 132 Mr Carter and the Free Enterprise Foundation 108 Mezzanine Media Australia 134 Mr Carter and Eightbyfive 110 Mr Grant 136 Mr Carter and Mickey Tech 111 Mr Hodges 139 Australian Decal Sales and Manufacturing Co 140 Chapter 22: Ms Ficarra 113 Chapter 28: The FedUp campaign 142 Chapter 23: Mr Hartcher and the $4,000 115 The involvement of the Newcastle Alliance 142 Funding the campaign 143 Part 5 – The Hunter Valley campaign 120 Chapter 29: The seat of Charlestown 146 Chapter 24: Mr Thomson and Mr Gallacher 121 Mr McCloy and the $10,000 146 Mr Thomson 121 Mr Grugeon and the Rex Newell painting 147 Mr Gallacher 121 Chapter 30: The seat of Swansea 150 Chapter 25: The New Year’s Eve fundraiser 123 Chapter 31: The seat of Port Stephens 152 Chapter 26: The Boardwalk Resources donations 125 The 2007 donations 152 Who was involved at Boardwalk Resources? 125 The 2010 donation 153 Mr Hartcher’s involvement 126 Chapter 32: The seat of Londonderry 154 Mr Gallacher’s involvement 128 Who is “our big man”? 128 Chronology of events 130 6 ICAC REPORT Investigation into NSW Liberal Party electoral funding for the 2011 state election campaign and other matters Part 6 – Corrupt conduct and S 74A(2) statements 157 Chapter 33: Corrupt conduct 158 Joseph Tripodi 159 Chapter 34: Section 74A(2) statements 161 Affected persons 161 Section 74A(2) statements – preliminary issues 162 Section 74A(2) statements 162 Appendix 1: The role of the Commission 165 Appendix 2: Making corrupt conduct findings 166 ICAC REPORT Investigation into NSW Liberal Party electoral funding for the 2011 state election campaign and other matters 7 Significant persons in this report Bandle, Anthony Trustee, Free Enterprise Foundation Bassett, Bart Member of Parliament for Londonderry (26/3/11 – 6/3/15) Baumann, Craig Member of Parliament for Port Stephens (24/3/07 – 6/3/15) Beaven, Robin Former President and Treasurer, Charlestown Branch, NSW Liberal Party Brinkmeyer, Lee Jay Director, Elmslea Land Developments Pty Ltd Brookes, Samantha Wife of Andrew Cornwell Brown, Wayne Country Representative, NSW Liberal Party State Executive Burrell, Shane Director, Mezzanine Media Australia Pty Ltd Caputo, John Vice-President, Manly State Electoral Conference, NSW Liberal Party Carter, Raymond Senior Electorate Officer, Terrigal Electorate Christensen, Philip Former Director, Boardwalk Resources Limited Cornwell, Andrew Member of Parliament for Charlestown (26/3/11 – 12/8/14) Crosby, Samuel Senior Adviser, Office of the Minister for Ports and Waterways De With, Rolly Treasurer of the Newcastle Alliance Di Girolamo, Nicholas Former Chief Executive Officer, Australian Water Holdings Pty Ltd Edwards, Garry Member of Parliament for Swansea (26/3/11 – 6/3/15) Ficarra, Marie Member of the NSW Legislative Council (24/3/07 – 6/3/15) Fedele, Vincenzo Proprietor, Meshmedia Gallacher, Michael, the Hon Member of the NSW Legislative Council Gazal, Nabil, Junior Director, Gazcorp Pty Ltd Gazal, Nicholas Director Gazcorp Pty Ltd Grant, Luke Broadcaster Grugeon, Hilton Principal, Hunter Land Holdings Pty Ltd Hanson, Eric Operations Manager, Australian Decal Sales and Manufacturing Co Pty Ltd Hartcher, Christopher Member of Parliament for Gosford/Terrigal (19/3/88 – 6/3/15) Henry, Aaron Electorate Officer, Terrigal Electorate Heufel, Vincent Accountant Hodges, Joshua Campaign Assistant, Timothy Owen 2011 election campaign Koelma, Timothy Proprietor, Eightbyfive Lusted, Matthew Director, LA Commercial Pty Ltd Maclaren-Jones, Natasha Former President, NSW Liberal Party 8 ICAC REPORT Investigation into NSW Liberal Party electoral funding for the 2011 state election campaign and other matters McCloy, Jeffrey Former Lord Mayor of Newcastle, Chairman of the McCloy Group McInnes, Simon Finance Director, NSW Liberal Party McKay, Jodi Member of Parliament for Newcastle (24/3/07 – 4/3/11) McNamara, Ian Former Adviser, office of the Premier Merhi, Tony Builder and property developer Murphy, Paul Chairman of the Newcastle Alliance Neeham, Mark Former State Director, NSW Liberal Party Newell, Rex Artist Nicolaou, Paul Former Executive Chairman, Millennium Forum Owen, Timothy Member of Parliament for Newcastle (26/3/11 – 12/8/14) Palmer, Troy Chief Financial Officer, Tinkler Group Holdings Administration Pty Ltd, Director, Patinack Farm Pty Ltd Partridge, Lindsay Managing Director, Brickworks Ltd Regent, Mark Contractor/consultant to Buildev Group Pty Ltd Reid, Sebastian Solicitor, Hartcher Reid
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