Click here for Full Issue of EIR Volume 18, Number 21, May 31, 1991 Australia Dossier by Lydia Cherry A glimpse of Australian powerbrokers Smith, a Melbourne academic at the One investigation into financial misdeeds has already forced Phillip Institute: of Technology. Speaking on April 18, Miss Smith Prime Minister Bob Hawke to fire a confidant. charged that from her public accounts inquiry, she was convinced that "there are extremely powerful and privileged people favored [in tax avoidance] who An ongoing investigation before has also been called to testify in an may have some sort of control over the Western Australia Inc. Royal investigation that revolves around governments in as far as they provide Commission has forced Prime Minis­ Burke's use of a multimillion-dollar political funding." ter Bob Hawke to sack one of his account which may have been used She demanded that the names of "mates," the current ambassador to in paybacks, tax avoidance schemes, those who devised and benefited from Ireland and former West Australian and money laundering. schemes to withhold taxes be made premier, Brian Burke. Hawke had in­ Another party in the investigation public. sisted that there was no basis for the is Perth businessman Yosse Golberg, Smith's allegations then led the dismissal; other Labour Party offi­ who is closely associated with the in­ House Standing! Committee on Fi­ cials, however, had maintained that fluential Leibler family in Melbourne nance and Public Administration to Hawke's inaction had caused untold (one of Prime Minister Hawke's best extend its investigation of internation­ political damage to the government, friends, by his own account, is World al profit shifting into an examination and Hawke finally gave in. Burke is Jewish Congress Vice President lsi into the use of withholding tax now being grilled for financial mis­ Leibler). Golberg fled Australia sev­ schemes. Also coming to light dealings when he was premier, a post eral months ago and was last seen in through a parliamentary report, were which he kept up until two years ago mid-May in Madrid. multimillion-dollar schemes involv­ when he was offered a new job by The Australian weekly the Jewish ing the use of dffshore tax havens, Hawke, sources say, to get him out News charged in mid-May that "anti­ which are thought to be used by orga­ of the country, though apparently not Semites" have targeted Golberg. nized crime syndicates. soon enough. It is unclear how far this investiga­ One day aftet the Melbourne Age Burke has been questioned at tion will lead into the Hawke-Leibler­ reported on Smith's charges, another length in the Royal Commission hear­ Sir Peter Abeles circle, where some friend of Prime Minister Hawke's and ings that began in mid-April; so has Australian sources think it is headed. the brother ofIsi Leibler, Mark Leibler, Laurie Connell, the former head of the (Abeles is an Austrialian transport publicly blasted her. Miss Smith's "dia­ collapsed merchant bank Rothwells, magnate.) These sources, however, tribes directed against non-existent who faces 78 charges of corporate note that numerous inquiries over the powerful and privileged people who al­ malfeasance and has let it be known last decade had seemed to be headed legedly control governments and clev­ he will drag more than a few down in this same direction but were shut erly deceive the ATO [Australian Tax with him. Connell, according to one down, through one legalistic means or Office] are totallywithout foundation," of the hearings' witnesses, has a pho­ another. he said. tograph of himself with Queen Eliza­ Numerous investigative reporters, Mark LeibleI1is a senior partner in beth hanging on one wall in his office. as well as other Australian observers, the law firm Arn�ld Block and Leibler The witness alluded to the high level are convinced that were any of these and an adviser to the tax commission­ of protection Connell enjoys when he investigations to be carried out fully, er. He is on the National Tax Liaison told the commission: "What I'm tell­ they would lead to the narcotics trade, Group and is the chairman of the Law ing you is, it wouldn't have surprised in particular the transshipment of ille­ Council of Australia's Taxation Com­ me who I saw there." gal drugs coming out of the People's mittee. Already Connell's testimony has Republic of China. He went on' to say that Smith's forced a humiliated Prime Minister A second, seemingly very impor­ claims that huge amounts of taxes Hawke to admit that he had misled tant investigation surfaced in the Aus­ were being avoided through the use of Parliament about the timing of his tralian press very briefly in mid-April. withholding tax provisions were "stu­ 1987 announcement rejecting a gold This investigation was stimulated ap­ pid, outrageous, and without foun­ tax. Corporate high-flyer Alan Bond parently by the findings of Barbara dation." EIR· May 31, 1991 International 57 © 1991 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited..