Tomorrow, 18 October 2021 at 10am Operation Keppel public hearings begin into the conduct of former Premier & not yet retired Member for Willoughby, Gladys Berejiklian

Gladys Berejiklian
IMAGE: news.com.au

 

NSW Independent Commission Against Corruption (ICAC), media release, 1 October 2021:

The NSW Independent Commission Against Corruption (ICAC) will hold a further public inquiry in Operation Keppel from 10:00 am on Monday 18 October 2021.

The Commission is investigating whether, between 2012 and 2018, the Hon Gladys Berejiklian MP engaged in conduct that:

• constituted or involved a breach of public trust by exercising public functions in circumstances where she was in a position of conflict between her public duties and her private interest as a person who was in a personal relationship with the then NSW Member of Parliament, Mr Daryl Maguire, in connection with: grant funding promised and/or awarded to the Australian Clay Target Association Inc in 2016/2017; and grant funding promised and/or awarded to the Riverina Conservatorium of Music in Wagga Wagga in 2018; and/or

• constituted or involved the partial exercise of any of her official functions, in connection with: grant funding promised and/or awarded to the Australian Clay Target Association Inc in 2016/2017; grant funding promised and/or awarded to the Riverina Conservatorium of Music in Wagga Wagga in 2018; and/or

• constituted or involved the dishonest or partial exercise of any of her official functions and/or a breach of public trust by refusing to exercise her duty pursuant to section 11 of the Independent Commission Against Corruption Act 1988 to report any matter that she suspected on reasonable grounds concerned or may concern corrupt conduct in relation to the conduct of Mr Daryl Maguire; and/or

• was liable to allow or encourage the occurrence of corrupt conduct by Mr Maguire.

The Commission is also investigating whether, between 2012 and August 2018, Mr Maguire engaged in conduct that involved a breach of public trust by using his public office, involving his duties as a member of the NSW Parliament, and the use of parliamentary resources, to improperly gain a benefit for himself, G8wayInternational/G8wayInternational Pty Ltd and associated persons.

The general scope and purpose of the public inquiry is to gather evidence relevant to the matters being investigated for the purpose of determining the matters referred to in section 13(2) of the ICAC Act.

The Commission has decided that public inquiries will be conducted, as far as practicable, remotely via audio visual link (AVL) until there is a change in the current COVID-19 public health orders. Only those whose presence on Commission premises is deemed essential for the effective conduct of the public inquiry will be permitted on-site. Members of the public and the media will therefore not be permitted to attend the premises for the course of the Operation Keppel public inquiry. There is further information in the public inquiry protocol on the Commission’s website.

MS Teams is the AVL technology that the Commission will use to conduct the public inquiry remotely. The Commission will live stream the MS Teams proceedings via its website, www.icac.nsw.gov.au. The Commission will also upload exhibits (provided they are not subject to non-publication orders), transcripts and witness lists to the website. Updates will be provided throughout the course of the inquiry via the ICAC Twitter account (@nswicac).

Assistant Commissioner the Hon Ruth McColl AO SC will preside at the public inquiry. Counsel Assisting the Commission will be Mr Scott Robertson and Mr Alex Brown.

It is expected that the inquiry will continue for approximately 10 days. A witness list for the first week of the public inquiry will be published closer to the commencement date of the proceedings, along with further information about how to access the live stream. The Commission will also advise if there are changes to the public health orders that may affect the conduct of the inquiry.

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OPERATION KEPPEL PUBLIC INQUIRY COMMENCING 18 OCTOBER 2021: WITNESS LIST as of 14 October 2021:

Monday 18 October

Michael Toohey (Current Director, Office of Sport, Greater Sydney Area, NSW)

Tuesday 19 October

Paul Doorn (Current CEO NSW Rugby Union & NSW Waratahs)

Wednesday 20 October

Nigel Blunden (Current Head of Government Affairs – HammondCare & Scott Morrison’s ‘captain's pick' in July 21 to help promote the national vaccination program rollout]

Mike Baird (Current CEO HammondCare & former NSW Liberal Premier from 17 Apr 2014 to 23 Jan 2017)

Thursday 21 October

Chris Hanger (Deputy Secretary, Public Works Advisory and Regional Development Group in the Department of Regional NSW)

Friday 22 October

Stuart Ayres (Current Liberal Member for Penrith, Deputy Leader of the NSW Parliamentary Liberal Party, Minister for Jobs, Investment, Tourism and Western Sydney & Minister for Industry and Trade - previously NSW Minister for Sport 2017-2019 & Minister for Police & Emergency Services 2017-2019). Member of the NSW Government COVID-19 crisis committee)

Gary Barnes (Secretary for the Department of Regional NSW)

Records of ICAC Operation Keppel proceeding commenced in 2020

Former NSW MP for Wagga Wagga – allegations concerning breach of public trust to improperly gain a benefit (Operation Keppel) at https://www.icac.nsw.gov.au/investigations/current-investigations/2020/former-nsw-mp-for-wagga-wagga-operation-keppel/former-nsw-mp-for-wagga-wagga-allegations-concerning-breach-of-public-trust-to-improperly-gain-a-benefit-operation-keppel

A report to the Berejiklian Government revealing such gross mismanagement of a public sector agency that it was probably thought a blessing that it was formally ordered published on a Friday

Failure of the icare Board to govern, lack of expertise, conflicts of interest, unethical behaviour, financial mismanagement, failure to meet standards, inappropriate behaviour, lack of accountability and grossly excessive executive remuneration – just a few of the problematic issues revealed in the 2020 annual review of this state compulsory workers compensation scheme, managed by icare since 2015 under ‘reforms’ established by the NSW Baird Coalition Government.

Sadly, the 2019 Independent reviewer report on the Nominal Insurer of the NSW workers compensation scheme: For the State Insurance Regulatory Authority (NSW) foreshadowed what was to come in 2020, by failing in its report to discourage the icare board and management from continuing the organisation’s wayward course.

NSW Legislative Council, Standing Committee on Law and Justice, 2020 review of the Workers Compensation Scheme, April 2021, excerpt:

Findings

Finding 1

That the multi-billion losses incurred recently by the Nominal Insurer and Treasury Managed Fund have been caused, in large part, by a collapse in return to work rates arising from icare’s decision to introduce a new claims management model.

Finding 2

That return to work rates have fallen further in schemes managed by icare than in schemes managed by specialist and self-insurers.

Finding 3

That icare has failed to address the fall in return to work rates in the Nominal Insurer and the Treasury Managed Fund with either the urgency or thoroughness they deserved given the negative impacts falling return to work rates have on injured workers and the financial sustainability of the scheme.

Finding 4

That the Nominal Insurer and the Treasury Managed Fund will continue to sustain major underwriting losses until icare improves return to work rates.

Finding 5

That implementation of the Work Injury Screening and Early Intervention (WISE) protocols, that deliver early and active intervention for injured workers with musculoskeletal injury that have a risk of delayed return to work, have had a significant positive impact on return to work rates, and despite this evidence being available to icare they have not been adopted in the Nominal Insurer or the Treasury Managed Fund.

Finding 6

That icare has too often failed to reach the standards of behaviour expected of a New South Wales public sector agency.

Finding 7

That icare’s decision to select Guidewire and Capgemini to build the Nominal Insurer Single Platform appears to have been predetermined, and led to project costs rising from $110 million to more than $360 million.

Finding 8

That Mr Vivek Bhatia and Mr Michael Carapiet failed to take appropriate steps to declare, record and manage the conflict of interests arising from Mr Bhatia’s personal relationship with the leaders of Capgemini.

Finding 9

That Mr John Nagle's decision to appear in a video endorsing Guidewire’s software, and to accept their sponsorship of a trip to Las Vegas to appear at their 2018 conference, was inappropriate.

Finding 10

That icare failed to clearly notify bidders that it was considering the appointment of a sole scheme agent to manage Nominal Insurer claims in the 2018 tender and as a consequence, the tender process was not fairly conducted.

Finding 11

That icare’s implementation of a claims management system that has a single scheme agent to manage all nominal insurer claims by using a sole scheme agent has failed.

Finding 12

That icare appears to have applied undue pressure on EML to engage The Bridge International using a Project Service Order mechanism.

Finding 13

That icare’s decision to select the Perceptive Group to develop a Net Promoter Score transgressed all reasonable conflict of interest principles.

Finding 14

That icare’s decision to award Mr Rob Craig unlimited authority to enter into contracts to build the Nominal Insurer Single Platform was inappropriate and contrary to an express policy determined by the Board.

Finding 15

That icare’s systemic failure to comply with key requirements of the Government Information (Public Access Act (2009) is longstanding, systematic and remains unacceptable.

Finding 16

That icare’s policy of permitting senior executives to engage in secondary employment is inappropriate, especially given the extraordinary levels of the salaries paid to icare executives to perform their work for icare.

Finding 17

That the icare Board failed to appropriately sanction the former Chief Executive Officer and Managing Director after his inadequate disclosure of a serious conflict of interest involving a close family member.

Finding 18

That icare failed to provide Mr Chris McCann with a safe workplace and inappropriately required him to enter into a non-disclosure agreement after he raised serious concerns with icare's governance.

Finding 19

That the icare Board comprehensively failed to properly govern icare.

Finding 20

That icare's Board lacked members with expertise in personal injury management or workers compensation.

Finding 21

That mechanisms between the icare Board and Treasurer have failed to work in making icare accountable for its conduct.

Finding 22

That the level of executive remuneration at icare is grossly excessive, and is likely to have contributed to poor cultural practices at icare, and is out of keeping with community expectations.

Meet the icare Board at https://www.icare.nsw.gov.au/about-us/our-people/our-board.

In which certain Clarence Valley elected councillors and senior council management try to pretend that a resolution at a NSW LGA conference has the force of law......

Given that local government is potentially the most corruptible of all three tiers of government in Australia, it comes as no surprise that transparency is still resisted though it is very disappointing to see Clarence Valley Council searching about for an excuse not to do the right thing.

One of the risible objections to having Disclosures of Interest published online was that it would be difficult to redact staff signatures & residential addresses and, is "considered a waste of valuable staff resourcing" [Item 6c.19.090, CVC Ordinary Monthly Meeting, Minutes, 29 November 2019].

Another was a suggestion that councillors and staff may be at physical risk if declarations were published online, even though these declartions are already available for inspection at council offices and have been for some years.

Clarence Valley Independent, 11 December 2019:

Councillor Karen Toms has lodged a rescission motion to try and overturn a decision, made at the November Clarence Valley Council (CVC) meeting, which raised the ire of the NSW Information and Privacy Commission (IPC).

Councillors Lysaught, Ellem, Kingsley, Baker, Williamson and Simmons voted against uploading councillors’ and senior staff’s declarations of interest to the CVC website. 

Following the decision, which was contrary to a guideline developed under the Government Information (Public Access) Act issued in September, Information Commissioner Elizabeth Tydd released a statement. 

She said three local councils – Gosford City, Mid-North Coast and Clarence Valley – had “publicly stated their intention to adopt practices that appear to offend the requirements of the GIPA Act and Guideline 1”. 

“The resolutions by councils, as they seek to deviate from clear requirements under the GIPA Act, [to] justify non-compliance for privacy reasons will be something I consider carefully,” she said. 

“It is important to stress that the guideline was developed in consultation with the NSW Privacy Commissioner.” 

She said the interests required to be declared by councillors and senior decision makers include business and pecuniary interests. 

She said declaring these interests is “a demonstrably effective tool in preventing corruption and promoting integrity. “These are strong factors in favour of disclosure, particularly in the local government sector where decisions impact the everyday lives of people,” she said. 

“Those factors must be balanced against factors against disclosure, including privacy. “However, declarations of business interests will not necessarily disclose any information impacting personal privacy.” 

At the November CVC meeting, general manager Ashley Lindsay said: “…on behalf of staff and designated persons … I think it is unfair for them to have their information on the website.” 

Councillor Greg Clancy suggested that any “sensitive information could be redacted”. “What’s the problem with having [the disclosures] on the website?” he said. 

Mr Lindsay advised councillors that the recent Local Government NSW conference had resolved to support a motion by Mid-Coast Council, which “strongly objects to the [disclosures] … being published on any website”. “…We should support the Local Government NSW motion,” 

Mr Lindsay said when answering a question from Cr Toms. “If unsuccessful, we can come back and change [CVC’s decision] and comply,” he said. Referring to the IPC guideline during debate on the matter, mayor Jim Simmons said it “may not be legislation” and that he thinks “there is some doubt … so I intend to vote for” not uploading the disclosures. 

However, he said “if it becomes clear to me in the next day or two [that it is legislation] I’ll support a rescission motion”.

BACKGROUND

Information Access Guideline 1 - For Local Councils on the disclosure of information (returns disclosing the interest of councillors and designated persons) at https://www.ipc.nsw.gov.au/information-access-guideline-1.

https://www.lgnsw.org.au/files/imce-uploads/581/2019_Record_of_Decisions_-_FINAL.pdf

USA 2019: crazy continues to be order of the day (Part Three)

A look at the US politician so many Australian Liberal and Nationals MPs and senators admire and seek to emulate....

Daily Kos, 12 January 2019:

Most of Donald Trump's $35 million in real estate deals in 2018 came with a huge political footnote attached to them. A Forbes analysis found the largest deal, yielding $20 million to Trump, came from the sale of a $900 million federally subsidized housing complex in Brooklyn in which the Trump Organization had a 4 percent stake. 

The Department of Housing & Urban Development had to approve the sale. In other words, the Trump Organization, which is still owned by Trump, needed permission from HUD, which reports to Trump as pr*sident, to turn a profit through a Brooklyn real estate deal. And guess what: HUD greenlit the deal.

Trump also took in another $5.5 million from 36 units sold in a 64-story Las Vegas tower. The catch? About a third of those units were bought by buyers hiding behind limited liability companies so they wouldn't have to disclose their identities. In 2017, USA Today reported that during the two years before Trump became the GOP nominee, only 4 percent of Trump’s building units were acquired by LLCs. So now that Trump's pr*sident, anonymous people are lining his pockets with real estate purchases cloaked through LLCs.

Remember when Trump made a big show of stacking up all the paperwork he was signing in order to supposedly clear up his conflicts of interest and forfeit management of his businesses? Yeah, he's still getting that money.

Sometimes it is hard to believe how bone-achingly stupid governments can be…… Part One

Before the Abbott Coalition Government appointed John Lloyd Australian Public Service Commissioner in 2014 he was Director, Workplace Relations and Productivity at the far-right pressure group, the Institute for Public Affairs - so this was all but inevitable....

The Sydney Morning Herald, 18 May 2018:

The Prime Minister's department has refused to release emails relating to the public service commissioner John Lloyd and a right-wing think tank, saying they could prejudice an investigation into a possible breach of the law.

Mr Lloyd has previously rejected suggestions he gave special access and research to the Institute of Public Affairs after Labor senators last year raised an email he sent to a member of the group with an attachment showing what he described as "generous" provisions in public service enterprise agreements.

A freedom of information request sought emails held by Department of Prime Minister and Cabinet secretary Martin Parkinson mentioning Mr Lloyd and the IPA, and dated from October 23, after senators referred to the email in a Senate estimates hearing.

The department responded to the request last month by refusing to release two emails in Dr Parkinson's inbox, dated December 20 and December 22.

"I am satisfied that disclosure secretary Peter Rush wrote.

Releasing the documents could also "reasonably be expected to prejudice the impartial adjudication of a particular case", Mr Rush said.

One document is 30 pages long, and another is five pages.

The department and the Australian Public Service Commission have refused to answer repeated questions from Fairfax Media asking who is under investigation, who is conducting the probe, and the matters being investigated.

"The department has no comment," Prime Minister and Cabinet said in two separate statements.

The APS commission said it would not comment "on speculation about any investigation".

The issue of an investigation is still dogging John Lloyd and was addressed at a Finance And Public Administration Legislation Committee Estimates hearing on 21 May 2018, where at 1:57pm Lloyd went from professing unfamiliarity with a government act relevant to his current situation to this…….

Fairfax Media journalist tweeting about Senate Estimates hearing, 21 May 2018:

This is awkward. Public Service Commissioner John Lloyd is flat out refusing to say whether he is under investigation over his relationship with the IPA #estimates

— Michael Koziol (@michaelkoziol) May 21, 2018

A verbatim exchange-
McAllister: Are you under investigation for breaking the law?
Lloyd: I’ll take that on notice #estimates

— Michael Koziol (@michaelkoziol) May 21, 2018

Yes, the Federal Coalition Government really opted for a member of the brains trust with  the appointment of John Lloyd.

ASIC reveals that AMP, ANZ, CBA, NAB & Westpac unlikely to act in customers' best interests

"The financial advice arms of Australia’s biggest banks have come under fire again, with the corporate watchdog finding their advisers failed to comply with the best interests of customers in 75% of advice files reviewed." [The Guardian, 24 January 2018]

Australian Securities and Investments Commission (ASIC), media release, 24 January 2018:

18-019MR ASIC reports on how large financial institutions manage conflicts of interest in financial advice

An Australian Securities and Investments Commission (ASIC) review of financial advice provided by the five biggest vertically integrated financial institutions has identified areas where improvements are needed to the management of conflicts of interest.

The review looked at the products that ANZ, CBA, NAB, Westpac and AMP financial advice licensees were recommending and at the quality of the advice provided on in-house products.

The review was part of a broader set of regulatory reviews of the wealth management and financial advice businesses of the largest banking and financial services institutions as part of ASIC's Wealth Management Project.

The review found that, overall, 79% of the financial products on the firms' approved products lists (APL) were external products and 21% were internal or 'in-house' products. However, 68% of clients’ funds were invested in in-house products.

The split between internal and external product sales varied across different licensees and across different types of financial products. For example, it was more pronounced for platforms compared to direct investments. However, in most cases there was a clear weighting in the products recommended by advisers towards in-house products.

ASIC noted that vertical integration can provide economies of scale and other benefits to both the customer and the financial institution. Consumers might choose advice from large vertically integrated firms because they seek that firm's products due to factors such as convenience and access, and recommendations of 'in-house' products may be appropriate. Nonetheless, conflicts of interest are inherent in vertically integrated firms, and these firms still need to properly manage conflicts of interest in their advisory arms and ensure good quality advice.

ASIC will consult with the financial advice industry (and other relevant groups) on a proposal to introduce more transparent public reporting on approved product lists, including where client funds are invested, for advice licensees that are part of a vertically integrated business. ASIC noted that any such requirement is likely to cover vertically integrated firms beyond those included in this review. The introduction of reporting requirements would improve transparency around management of the conflicts of interests that are inherent in these businesses.

ASIC also examined a sample of files to test whether advice to switch to in-house products satisfied the 'best interests' requirements. ASIC found that in 75% of the advice files reviewed the advisers did not demonstrate compliance with the duty to act in the best interests of their clients. Further, 10% of the advice reviewed was likely to leave the customer in a significantly worse financial position. ASIC will ensure that appropriate customer remediation takes place.

Acting ASIC Chair Peter Kell said that ASIC is already working with the major financial institutions to address the issues that have been identified in the report on quality of advice and management of conflicts of interest.

'There is ongoing work focusing on remediation where advice-related failures have led to poor customer outcomes, and the results of this review will feed into that work,' said Mr Kell.

ASIC is already working with the institutions to improve compliance and advice quality through action such as:

　

* improvements to monitoring and supervision processes for financial advisers; and

* improvements to adviser recruitment processes and checks. 

　

ASIC will continue to ban advisers with serious compliance failings.

ASIC highlighted that the findings from this review should be carefully examined by other vertically integrated firms. 'While this review focused on five major financial services firms, the lessons should be considered by all vertically integrated firms in the financial services sector.'　

Download the report　

Background　

The review took place during 2015 to 2017.

The licensees included as part of the review were: 

* AMP: AMP Financial Planning Pty Limited and Charter Financial Planning Limited;  

* ANZ: Millennium 3 Financial Planning Pty Ltd and ANZ Financial Planning; 

* CBA: Count Financial Limited and Commonwealth Financial Planning Limited;

* NAB: GWM Adviser Services Limited and NAB Financial Planning;

* Westpac: Securitor Financial Group Ltd and Westpac Financial Planning.