Liberal MP Stuart Robert's resignation as Australian Minister for Human Services raises more questions than it answers

The following is a rough timeline covering the the not-so-illustrious political career of Stuart Rowland Robert, Liberal MP for Fadden (QLD) since 2007.

On 10 September 2010 Stuart Robert changed his Statement of Registrable Interests to reflect that he and his wife were no longer trustees for the Robert Family Trust and Robert Investments Family Trust, as well as ceasing to be directors and shareholders in Robert International Pty Ltd.

It is understood that new trustees are close family members of Robert.

For most of his parliamentary career to date Stuart Robert has not ventured overseas that often.

His first official overseas trip did not occur until 5 August 2009 as part of a parliamentary delegation to Timor Leste. His second was also as part of a parliamentary delegation – this time to the United Arab Emirates between 13-20 May 2011.

Robert’s third and fourth overseas trips covered six days in June and five days in October 2011. First as a representative of Australia during commemorative events in France and then on a study tour of South Africa. The two and a quarter page study report cost taxpayers $16,161.58.

Between 13 Feb to 17 Feb 2012 Stuart Robert was again overseas representing Australia in Singapore on behalf of Senator Michael Ronaldson. From 17 Oct to 21 Oct 2012 Robert was in Egypt for the 70th anniversary of the Battle of El Alamein, before travelling on to Uganda for seven days on another study tour. This second three-page study report cost $3,811.92.

In June 2013  then Shadow Minister for Defence, Science, Technology and Personnel  Stuart Robert hosted a small private dinner at Parliament House for a representative of a Chinese mining company, reportedly at the request of another guest, millionaire businessman Paul Marks. 

Besides Marks, guests at this dinner included Chinese billionaire Li Ruipeng, then Shadow Minister for Energy and Resources Ian Macfarlane and then Liberal National Party president Bruce McIver. Opposition Leader Tony Abbott and then Shadow Minister for Immigration and Citizenship & Shadow Minister for Productivity and Population Scott Morrison attended the dinner towards the end.

The 2013 dinner

All the Australian politicians at this dinner reportedly received gifts of designer watches worth est. $250,000 in total.

Marks is frequently described as a close personal friend of Robert.

On 31 January 2014 mining exploration company Nimrod Resources Limited donated $500,000 to the federal Liberal Party of Australia.

In mid-August 2014 Stuart Robert accompanied Paul Marks to China allegedly to lobby the Chinese Government on his behalf in relation to the business interests of Nimrod Resources.

Robert did not bill the taxpayer for his flight to China. However, his return journey was via Singapore for the Singapore-Australia Joint Ministerial meeting and the Defence Ministers' Dialogue on 21 to 23 August. Therefore taxpayers funded the last leg of his journey home.

Nimrod Resources currently has three directors, Paul Marks (Executive Chairman), James Macaulay (Managing Director) and Robert Kingdon (Non-executive Director). Bruce McIver reportedly holds a 22 per cent shareholding in this company.

In early April 2014 Stuart Robert as Assistant Minister for Defence led a 7-day trade mission to Israel organized by the Australia-Israel Chamber of Commerce, of which Marks' brother Sam Miszkowski is understood to be a Queensland office bearer/member.

There were two other ministerial visits overseas in 2014 - one to Afghanistan and another to New Zealand & the United States.

On 30 June 2014 P. Marks Investment Pty Ltd  donated $431,631 to the federal Liberal Party.

Between April and June 2015 Paul Marks personally donated $340,000 to the federal Liberal Party.

To date the Marks family appear to have donated at least $1.47 million directly to the Liberal Party.

In late April to early May 2015 as Assistant Minister for Defence, Stuart Robert made ministerial visits to the United Arab Emirates, Iraq and the USA as part of a trade delegation.

By 2016 Chinese businessman Li Ruipeng is no longer a high-flying billionaire but is wanted by police in China for illegal fundraising and unpaid debts of est. $30 million and Robert may yet have to appear as a witness in a court case concerning the outcome of a Dubai land deal which went wrong.

On 12 February 2016 Australian Prime Minister Malcolm Turnbull released a press statement regarding Robert’s resignation as Minister for Human Services which said in part that: Mr Robert advised Dr Parkinson that at the time he travelled to Beijing in August 2014 he did not believe that he had any interest in or connection to Mr Paul Marks’ company, Nimrod Resources. In the course of assisting the investigation, Mr Robert advised Dr Parkinson that on checking his records he had become aware that shares in Metallum Holdings Pty Ltd, a company in which Mr Marks was also a shareholder, had been allocated to his trustee some time before the visit to Beijing. He told Dr Parkinson that this had been done without his knowledge. He further advised Dr Parkinson that he believed Metallum Holdings Pty Ltd had an interest in Nimrod Resources.

Metallum Holdings has an interesting history:

METALLUM HOLDINGS PTY LTD  ACN 160 273 763

Formerly Resource House Holdings Pty Ltd

Registered: 10 September 2012

Address: Office F1 Level 1, 47-59 Ashmore Road, Bundall QLD 4217

Sole Director: Paul Marks

Company Secretary: Robert Arthur Kingdon of Kingdon Lawyers

Number of Ordinary Shares: 10,000

Shareholders:

MIST CONSULTING PTY. LTD. – a Marks family company, trading as Friends of Israel (QLD), which donated $200,000 to the Liberal Party of Australia on 13 March 2014

[See: http://periodicdisclosures.aec.gov.au/Returns/55/SWIK4.pdf]

ROMELL PTY. LTD.

P. MARKS INVESTMENT PTY LTD

Louise Edwards

Previous Shareholders:

INTERIMCO PTY LIMITED – company believed to be owned or part-owned by former Liberal National Party president Bruce McIver

JJ HOLDINGS (VIC) PTY. LTD.

OZEAN INVESTMENTS PTY. LIMITED

Tom Kotsimbos.

All this leaves two questions hanging after Stuart Robert’s resignation – exactly how often did Robert assist Marks family business interests in the last nine years and, how many other Turnbull Government ministers have helped Paul Marks in a similar fashion?

UPDATE

Herald Sun, 10 April 2016:

DUMPED minister Stuart Robert took his official Defence-issued mobile phone on his controversial private trip to China, potentially exposing the device to a breach of national security.

Phone records obtained using Freedom of Information laws reveal the then-assistant defence minister had the device in Beijing while there to witness mate and Liberal donor Paul Marks sign a deal with the ­Chinese government.

The phone records show Mr Robert’s phone was switched on and connected to Chinese and Hong Kong networks eight times on August 15, 2014, and a further four times on August 16.

Royal Commission warns woman Tony Abbott called "honest", "credible" and "heroic" that she may have to be examined further over alleged wrongdoing

Back in 2012 Australian Prime Minister (then Coalition Opposition Leader) Tony Abbott described then Secretary of the Health Services Union, Kathy Jackson, as honest, credible and heroic because her war with political adversaries was embarrassing the Labor Party.

Since then widespread allegations of fraud and theft have surfaced in relation to Ms. Jackson, as well as reports of other unusual financial arrangements.

So it is no wonder that The Australian reported on 27 April 2015 that:

Royal commissioner Dyson Heydon QC has warned his inquiry is far from finished with Kathy Jackson, saying she will have to demonstrate strong ­reasons why her tenure at the Health Services Union should not be examined further.

Reopening the royal commission investigating trade union governance and corruption yesterday, Mr Heydon said he was not convinced by arguments that he should refrain from making findings about the former HSU ­nat­ional secretary while the union pursued her in civil proceedings. The union’s new leadership has also referred allegations against her to Victoria Police.

“It must be stressed that the ­issues affecting Ms Jackson should be dealt with, unless good cause is shown for a contrary course,” Mr Heydon said.

“The desirability of dealing with some or all of the issues ­affecting Ms Jackson is something to be considered later this year. It may be necessary to debate the matter, for the submissions of Ms Jackson’s solicitor ­opposed that course.”

Jeremy Stoljar SC, counsel ­assisting the royal commission, last year recommended criminal charges against Ms Jackson for submitting a “false claim” when she negotiated a $250,000 payment from Melbourne’s Peter MacCallum Cancer Centre for the HSU after a dispute over workers’ back pay, but Mr Heydon held off making findings about this in his interim report.

He said yesterday that it was more convenient to deal with ­issues surrounding Ms Jackson’s conduct in one go in his final ­report, rather than separating them too soon.

The HSU’s case against Ms Jackson is due to be heard in the Federal Court in June…….

NSW Independent Commission Against Corruption: Has the other shoe dropped for former premier Barry O'Farrell?

Retired as NSW Premier and Minister for Western Sydney effective 17 April 2014 and moved to the back bench after giving false evidence to the NSW Independent Commission Against Corruption, Barry O’Farrell Liberal MP for Kur-ing-gai for is recalled as a witness today.

The Sydney Morning Herald 9 September 2014:

Two weeks before the 2011 election, then opposition leader Barry O'Farrell announced a tax policy that benefited developer Brickworks while the company was allegedly bankrolling a researcher in his office and had secretly donated $125,000 to the Liberal campaign.

As Premier, Mr O'Farrell made good on the policy – to repeal a controversial property transfer tax – six weeks after the election.

The researcher, Matt Crocker, is now director of policy to Premier Mike Baird.
Mr O'Farrell is due to give evidence at the Independent Commission Against Corruption on Tuesday after the commission heard last week that Brickworks secretly funded Mr Crocker's position in his office while he was opposition leader.

Former Liberal fundraiser Paul Nicolaou told the commission that Brickworks paid for a researcher in 2009, 2010 and 2011 at a cost of $50,000 a year……

The ICAC has also heard Brickworks donated $125,000 to the Liberal-linked Free Enterprise Foundation, a federally registered organisation, which was then allegedly channelled back to the NSW Liberals for use in the 2011 state election campaign.

Brickworks is Australia's largest brickmaker but also has a property development arm. Property developers have been banned from donating to state election campaigns in NSW since late 2009.

Mr O'Farrell visited the Horsley Park headquarters of Brickworks subsidiary Austral Bricks on March 12, 2011.

During the visit Mr O'Farrell announced that if Coalition won the March 26 election it would repeal what he called Labor's "sneaky" home buyers tax – a levy on property transfers worth more than $500,000, announced by planning minister Tony Kelly in 2010.

Attending the announcement was a representative of the Property Council of Australia which had railed against the new tax as "a brake on investment" and "effectively ... a second stamp duty".

Six weeks after winning the election, Mr O'Farrell made good on his pledge to repeal the property tax with legislation introduced to the Parliament on May 9.

The repeal bill was introduced to the Legislative Assembly by Mike Baird, who was then the Treasurer and who became Premier in April this year after Mr O'Farrell resigned over giving false evidence to a previous ICAC inquiry…..

NSW Independent Commission Against Corruption now has evidence before it that implicates members of the election campaign team which helped Tony Abbott become Prime Minister of Australia

@Kate_McClymont

Well it can no longer be ignored, the NSW Independent Commission Against Corruption now has evidence before it that implicates members of the election campaign team which helped Tony Abbott achieve his goal of becoming Prime Minister of Australia.

This is a section of the 2010 email (above) copied to Brian Loughnane, Federal Director of the Liberal Party of Australia and husband of Prime Minister Tony Abbott’s chief of staff, as well as Arthur Sinodinos who was then Honorary Treasurer of the NSW Division of the Liberal Party and a former chief of staff to John Howard when he was prime minister:

This email makes it clear that one property developer is unlawfully donating $25,000 to the NSW Liberal Party of Australia via the party’s federal associated entity, the Free Enterprise Foundation.

So will Brian Loughnane assert that he didn't read his emails in 2010 or will he, like Senator Sinodinos' lawyer, claim that routing unlawful donations to the NSW Liberal Party through the Free Enterprise Foundation was a legitimate action.

UPDATE

According to a report in The Sydney Morning Herald on 8 September 2014, Liberal Party MP for Mackellar and Speaker in the House of Representatives Bronwyn Bishop has been identified in evidence before the Operation Spicer investigation as being a director of the Dame Pattie Menzies Foundation Trust which received $11,000 from the Free Enterprise Foundation on December 9, 2010, which it then directed to the NSW branch of the party for use in the 2011 state election and The previous day, Mr Partridge has sent a cheque for $125,000 to the Free Enterprise Foundation with a note which read: "We trust this donation will provide assistance with the 2011 NSW State election campaign". Additionally, A $2000 donation to the Dame Pattie foundation from Australian Corporate Holdings, a company connected to Sydney property developer and sailor Syd Fischer, was also passed on to the NSW Liberals.

The same article also pointed out that:

Previously suppressed emails at a corruption inquiry raise serious concerns about major donors to the Liberal Party being rewarded with extraordinary access to senior party figures.

The emails are from the chief fundraiser of the NSW Liberal Party Paul Nicolaou to Peta Credlin, one of the most powerful figures in the federal government….

As well as being chief of staff to Prime Minister Tony Abbott, Ms Credlin is married to Brian Loughnane, the party's federal director.

The emails reveal that, in March 2011, while in Opposition, Ms Credlin was advised by Mr Nicolaou that the managing director of Brickworks, Lindsay Partridge, was "a very good supporter to the party".

 Brickworks was one of the largest corporate donors to the Liberal Party, giving a massive $384,000 in a nine-month period from July 2010 to April 2011.

As well as its brand Austral Bricks, Brickworks also lists property development as a core business. The ICAC has heard that Brickworks used the Free Enterprise Foundation, a shadowy Canberra-based organisation, to channel $125,000 in illicit donations  to the NSW Liberals for the March 2011 state election.

NSW Independent Commission Against Corruption Operation Spicer Witness List for week commencing 1 September 2014 -UPDATED

NSW ICAC Operation Spicer witness list for week commencing 1 September 2014

Monday 1 September 2014

Joe Tripodi - former NSW Labor MP for Fairfield and Minister for Ports and Waterways, in 2010 announced that he would not stand at the 2011 state election after corruption allegations made in ICAC Operation Cyrus hearings concerning his actions as minister

Ross Cadell - NSW Nationals regional co-ordinator, director at R & S Cadell Pty Ltd, manages the trading arm of family businesses including Tiny Tutus Pty Ltd, Tutu Central and P1 Race Engineering 

Kristina Keneally - former Labor MP for Heffron and former NSW Premier

Ian McNamara - chief of staff to Opposition Leader John Robertson, stood aside while Operation Spicer continues

Eric Roozendaal - former NSW Labor MLC for and NSW Treasurer, suspended from the Labor Party in 2012 during an ICAC investigation into an inducement he accepted, resigned from Parliament in 2013, now working for a Chinese development company

Tuesday 2 September 2014

Mike Fleming – former chief of staff to then NSW Labor MLC, former Minister for Lands and later Shadow Minister for Resources and Primary Production who he resigned from parliament after an ICAC investigation found that he had acted corruptly when Minister for Lands Removed from this week's list

Eric Roozendaal - former NSW Labor MLC for and NSW Treasurer, suspended from the Labor Party in 2012 during an ICAC investigation into an inducement he accepted, resigned from Parliament in 2013, now working for a Chinese development company

Chris Hartcher - former NSW Liberal Party MP for Terrigal and former NSW Resources and Energy now sitting on the cross benches as an independent MP after expulsion from the party

Bart Basset - NSW Liberal MP for Londonderry who moved to the cross bench after ICAC commissioner Megan Latham announced that new evidence had emerged to widen the inquiry's scope to examine whether Nathan Tinkler's firm Buildev tried to influence Mr Bassett

Wednesday 3 September 2014

Craig Baumann - NSW Liberal MP for Port Stephens previously mentioned in evidence given during Operation Spicer. Removed from this week’s list

Bart Basset - NSW Liberal MP for Londonderry who moved to the cross bench after ICAC commissioner Megan Latham announced that new evidence had emerged to widen the inquiry's scope to examine whether Nathan Tinkler's firm Buildev tried to influence Mr Bassett

Mark Regent - Buildev project manager on the Redbank North Richmond Joint Venture regional housing project
Matt Kelly - Newcastle Herald journalist

Gary Edwards -  NSW Liberal MP for Swansea on 14 August 2014 announced he had moved to the cross bench, after allegations during evidence that he had received an unlawful political donation

Michael Gallacher - NSW Liberal MLC who resigned as Minister for Police and Emergency Services on 2 May 2014 after being named as one of the subjects of ICAC’s Operation Spicer investigation, suspended from the Liberal Party and moved to the cross bench

Victor Yee - unknown

Mark Ryan – director of public affairs at Westfield Corporation and a director of the Lowy Institute for International Policy 

Robert Webster – Korn Ferry chairman, Brickworks Ltd independent director and former NSW Nationals planning minister

Thursday 4 September 2014

Robert Milner – chairman of Washington H Soul Pattinson & Company Limited, chairman and major shareholder in Brickworks Ltd

Lindsay Partridge – Liberal Party member, Austral Bricks managing director and CEO at Brickworks Ltd which are part-owned by Washington H Soul Pattinson & Company Limited

Lee Brinkmeyer - political donor to NSW Liberal Party, Queanbeyan property developer with Elmslea Development, possibly related to land speculator and former president of the Queanbeyan branch of the Liberal Party Alex Brinkmeyer

Mark Neeham - former State Director of the New South Wales Liberal Party, executive director polling/lobbying firm Crosby Textor

Simon McInnes - Finance Director of the New South Wales Liberal Party

Paul Nicolaou – was principal fundraiser for the New South Wales Liberal Party, former chairman of the Liberal Party fundraising associated entity Millennium Forum, former chief executive of the NSW branch of the Australian Hotels Association

Friday 5 September 2014

Philip Christensen - former Whitehaven Coal board member, heads Baker & McKenzie Brisbane law office

Natasha McLaren-Jones - Liberal Party NSW MLC since March 2011

Michael Photios - member of the NSW Liberal Party's state executive until September 2013, contracted by Australian Water Holdings in 2011 to lobby NSW O’Farrell Government

Michael Yabsley - former Liberal NSW MLC and former minister in the Greiner Government, former Honorary Federal Treasurer of Liberal Party of Australia and former member Federal Finance Committee, CEO Australia Gulf Council, founder and director of Government Relations Australia

John Pegg - member of the three-man panel appointed by NSW Premier Mike Baird to take control of the state party’s finances, property and fundraising in the wake evidence before ICAC

NSW ICAC OPERATION SPICER witness list for week commencing 18 August 2014 - cheat sheet

OPERATION SPICER witness list for week commencing on 18 August 2014:

Monday 18 August 2014

Tracy McKelligott (Kearney) - Managing director of Eclipse Media, Events and PR Company, Brand Marketing Manager at Parramatta National Rugby League Club and deputy-chair of Newcastle Alliance

Peter Doyle - restaurateur, vice-chairman of Restaurant and Catering Australia’s NSW/ACT state council 

Nick Dan - managing partner at Bilbie Dan: Solicitors & Attorneys, director Newcastle Knights' Members ‘Club Ltd and chair of its board, chair of Barrington Resources Pty. Ltd which holds magnetite licences for deposits in the Hunter, Tamworth, Scone regions

Rolly Dewith - Newcastle businessman and managing director of the Junction Hotel, former Newcastle Alliance board member

Neil Slater - Newcastle restaurateur and member of the Newcastle Alliance

Tuesday 19 August 2014

Paul Murphy - Newcastle businessman and chairman of the lobby group the Newcastle Alliance

Lynda Jane Harkness - former executive assistant at Hunter Land Pty Ltd (founded by Hilton Grugeon and Graham Burns) which undertakes development of industrial and commercial projects

Vincent Fedele -  owner of Mesh Media printing
Sam Crosby - chief executive director of The McKell Institute and former senior policy adviser for the NSW Treasurer in the Keneally Labor Government

Dominic Schuster - Director Business Policy & Performance NSW State Treasury Garry Webb - former CEO of  Newcastle Port Corporation 

Thursday 21 August 2014

Rex Newell - artist

Samantha Brookes - wife of Andrew Cornwell

Andrew Cornwell - disgraced former NSW Liberal MP for Charlestown

Chris Stone - former Liberal Party state campaign manager

Clint McGilvray - former Australian Business Foundation head of communications and member of Barry O’Farrell’s 2011 campaign team
Matt Kelly - Newcastle Herald journalist

Rocco Leonello - former staffer with then NSW Labor Minister for Finance Joe Tripodi

Friday 22 August 2014

David Simmons - a former federal Labor MP then working as a registered Buildev consultant 

Ann Wills - former Labor staffer, worked for Buildev and took part in the Stop Jodi's Trucks pamphlet campaign

Troy Palmer -  CEO Hunter Sports Group, Chief Financial Officer of Patinack and a Buildev Group director

David Sharpe - former co-owner and executive at BuildDev property developer

Removed from this week's witness list at 4pm 18 August 2014

John Hart - chairman of the North Sydney Forum, a fund-raising entity attached to the Liberal Party federal electoral conference in Australian Treasurer Hockey's seat of North Sydney and, CEO of Restaurant and Catering Australia, the national lobby group for the hospitality industry

The Score So Far: ICAC 9 Liberal Party of Australia 0

It is only halfway through the working week and yet more members of the Liberal Party of Australia have been forced to resign after allegations made during NSW Independent Commission Against Corruption hearings.

The tally so far:

Arthur Sinodinos Federal Liberal Senator for NSW and Assistant Treasurer in the Abbott Government  - not fulfilling assistant treasurer duties for the duration of the ICAC Operation Credo and Operation Spicer investigations, after allegations concerning the corporation Australia Water Holdings of which he was a director were made during Operation Credo  .

Barry O’Farrell NSW Liberal MP for Ku-ring-gai  – resigned as Premier and Minister for Western Sydney effective 17 April 2014 and moved to the back bench when it was proven that he had not told the truth when giving evidence at a NSW Commission Against Corruption (ICAC) Operation Credo hearing in relation to an undeclared $3,000 gift from the then CEO of Australian Water Holdings.

Mike Gallacher NSW Liberal MLC – resigned as Minister for Police and Emergency Services on 2 May 2014 after being named as one of the subjects of ICAC’s Operation Spicer investigation, suspended from the Liberal Party and moved to the cross bench.

Chris Hartcher NSW Liberal MP for Terrigal – resigned as Minister for Resources and Energy, Special Minister of State, Minister for the Central Coast on 9 December 2013, suspended from the  Liberal Party and moved to the cross bench.

Marie Ficarra NSW Liberal MLC – resigned as parliamentary secretary on 17 April 2014 after it was alleged she solicited an unlawful political donation, suspended from the Liberal Party and moved to the cross bench..

Darren Webber NSW Liberal MP for Wyong and Member, Legislative Assembly Committee on Law and Safety - suspended from the Liberal Party of Australia (NSW) after corruption allegations, moved to the cross bench and not re-contesting his seat at the 2015 state election.

Christopher Spence NSW MP for The Entrance - suspended from the Liberal Party of Australia (NSW) after corruption allegations, moved to the cross bench and not re-contesting his seat at the 2015 state election.

Andrew Cornwell – resigned as NSW Liberal MP for Charlestown after admitting in evidence that he had received unlawful political donations and paid his tax bill with some of that money.

Tim Owen – resigned as NSW Liberal MP for Newcastle on 12 August 2014 after admitting he had not told the truth concerning unlawful political donations when giving evidence at an ICAC Operation Spicer hearing and had met with another ICAC witness allegedly to convince that witness not to tell the truth.

See Operation Credo and Operation Spicer  hearing transcripts here.

UPDATES

After allegations during evidence given in an Operation Spicer hearing, that he had received an unlawful political donation, on 14 August 2014 Liberal MP for Swansea Garry Edwards announced he had moved to the cross bench.

On 18 August 2014 it was reported that Newcastle mayor Jeff McCloy had resigned his mayoral position due to admissions that he had made unlawful political donations to the NSW Liberal Party and, chief of staff to Opposition Leader John Robertson Ian McNamara has stood aside while ICAC hearings continue.

On 27 August 2014 it was reported by ABC News that the Liberal MP for Londonderry Bart Bassett had moved to the cross bench after ICAC commissioner Megan Latham announced that new evidence had emerged to widen the inquiry's scope to examine whether Nathan Tinkler's firm Buildev tried to influence Mr Bassett.

The score now stands at: ICAC 13 Liberal Party of Australia 0

NSW Independent Commission Against Corruption's Operation Spicer hearing recommenced on 6 August 2014 and certain interested parties have been co-operating with the investigation

The Sydney Morning Herald 6 August 2014:

Federal Liberal Party director Brian Loughnane has been drawn into a corruption scandal embroiling the party after an inquiry heard allegations he rubberstamped the use of federal channels to subvert the NSW ban on donations from property developers.

The Independent Commission Against Corruption resumed public hearings on Wednesday in Operation Spicer, its inquiry in to Liberal Party fundraising.

The allegations aired during a two-hour opening address, delivered by counsel assisting the commission, Geoffrey Watson, SC, resulted in Liberal MPs Tim Owen and Andrew Cornwell stepping aside from the party and joining the crossbench….

In a sensational twist on Wednesday, Mr Owen's campaign manager Hugh Thomson has rolled over and is assisting the commission in return for an indemnity against prosecution.

7 News 6 August 2014:

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."

Excerpts from Operation Spicer morning and afternoon hearing transcripts for 6 August 2014:

* Now, I’ll just move on to the last issue and I’ll be very brief about this

because we dealt with it in detail on the earlier occasion. During the course

of opening the earlier segment of this inquiry we said that during 2010 and

2011 Members of the Liberal Party of New South Wales used the Free

Enterprise Foundation as a means of washing and rechannelling donations

made by prohibited donors. We said that this was clearly done for the

 purpose of avoiding the impact of the Election Funding Act and that the

purpose was to disguise the true source of the money.

Further investigations have been undertaken and the result of those further

investigations confirms that what we said on the earlier occasion is accurate.

There is evidence that the use of the Free Enterprise Foundation in this

fashion was known at high levels in the Liberal Party.

It seems that the Federal Party was willing to allow itself to be used in that

way. We’ve been able to obtain an email sent on 23 July 2010, it was sent

by Simon McInnes who at that stage was the Finance Director the New

South Wales Liberal Party and it was sent by Mr McInnes to Colin Gracie

who at that stage was employed by the Federal Liberal Party, I’ll put it up

on the screen.

Mr McInnes’s inquiry was in respect of a donor was not a property

developer but Mr Gracie’s response is telling. If I just go down the bottom.

First email is to Mr Gracie, “We have a potential donor who wants to donate

towards the New South Wales campaign Banks for the Federal election but

don’t want to be disclosed under New South Wales disclosure laws not a

property developer.” Under Federal law they can donate up to $11,500 et

cetera, “Would the Federal Division be able to process donation.” There

may not be anything wrong with that but the answering is telling, “Hi

Simon, Brian Loughnane has agreed that for the time being the Federal

Secretariat will operate on the policy set out in the attachment. In effect

there is no benefit for a New South Wales donor to donate via the Federal

Secretariat”, and these are the words, “unless they are a property developer.”

* The first area of inquiry will look at the way that persons in the Liberal

Party conducted and funded campaigns for seats in the Hunter region in the

2011 State Election. Most of the time will be spend on the seat of

Newcastle but there is also a need to look at events which occurred in the

adjoining seat of Charlestown. The evidence acquired so far clearly shows

serious irregularities in the way those campaigns were conducted and

funded. Enough objective material has been collected so that we are

confident in saying that it will be established that the Liberal Party

campaign for the seat of Newcastle was partly funded from illegal sources.

The evidence is that there was a broad understanding that a number of

different prohibited donors would, acting under some subterfuge, provide

the funds to keep the campaign rolling. The persons involved in this

include, on the Liberal Party side, Hugh Thomson, he’s a lawyer who was

the campaign manager for Newcastle, Josh Hodges, a Liberal Party figure

who was brought in to co-manage the campaign, and the candidate himself,

Tim Owen.

The developers who contributed to the off-books funding include Buildev

Pty Limited, a company part-owned by Nathan Tinkler, Jeff McCloy, he is

the Mayor of Newcastle, and Hilton Grugeon, a prominent property

developer in the Hunter region. There were others as well.

There is also evidence that Michael Gallacher MLC was aware of these

arrangements and in fact suggested some of them. There is other evidence

that Christopher Hartcher MP was also aware and that he participated in

some aspects of it.

* Commissioner, the scheme was crude but it was effective. Mr Hodges

raised invoices purporting to charge for consultancy services. I pause there

and say Mr Hodges has been helpful as well.

The invoices were a sham. No such services were provided. The payments

were designed to cover the salary payable to Mr Hodges for his work on Mr

Owen’s campaign. And now I’ll show as an example a false invoice raised

by Mr Hodges to Saddingtons Pty Limited. You’ll see it there, it’s to

Saddingtons and it’s for consultancy advice, commercial premises, Wyong.

Mr Hodges has told us that that was a sham invoice. Saddingtons is a

company owned by a local identity, Bill Saddington and it’s a major

hardware supplier. I’ll show another one. This is a false invoice raised by

Mr Hodges to accompany Australian Decal Sales and Manufacturing Pty

Limited. Australian Decal had provided services in Mr Owen’s campaign.

They provide those sorts of stickers, you might see them on the sides of

political candidates’ cars, that sort of thing. And you’ll see that here, that

Mr Hodges was asked to make up a false invoice addressed to Australian

Decal for consultancy advice and business plan. So that was sent on to

Australian Decal. And then I’ll show the next document because that sum,

7,000-odd to Mr Hodges was included in Australian Decal’s own invoice.

The people at Australian Decal have assisted us as well. The $7,000-odd to

Mr Hodges was included in Australian Decal’s invoice which they were told

should be issued to Buildev. Buildev eventually paid that.

Commissioner, it was also agreed that Mr Owen’s campaign needed a media

expert. A local radio identity, Luke Grant was available and with the

assistance of Michael Gallacher, MLC Mr Grant was brought in to advise on

the way that Mr Owen’s media campaign should be conducted. Now, Mr

Grant’s work was worthwhile and he was entitled to be paid for it. And

there’d been an agreed sum, he was to be paid $20,000. An arrangement

was made so that two local property developers paid for Mr Grant. Mr

Grant too has been helpful. The idea was that Mr Grant would issue

invoices to each of these property developers for $10,000, but not exactly

$10,000 because a round figure might look suspicious.

* The first is an incident which occurred when Mr Cornwell was at work. In a

previous life he was a veterinary surgeon in Cardiff. While in surgery

Mr Cornwell was called out for an urgent meeting with Jeff McCloy. They

sat in Mr McCloy’s car. Mr Cornwell thinks it was a Bentley. But anyway

they sat in Mr McCloy’s car and Mr McCloy passed over an envelope

containing a large wad of bills. Mr Cornwell says, and I think this is quite

understandable, that he was so shocked and embarrassed that he didn’t

respond. Mr Cornwell says that he didn’t even count the money but from

other means we know that it was $10,000. Mr Cornwell says he took the

money home, he put it in his sock drawer or somewhere for a while and then

later passed it to the president of the Charlestown branch Bob Bevan.

Mr Bevan was acting as a kind of, in this respect, a kind of de facto

campaign treasurer. Mr Cornwell explained to Mr Bevan, we’ve got this

from each of them, their evidence is perfectly consistent except in one

respect, Mr Cornwell explained to Mr Bevan that it was a donation which

had come from a donor who didn’t wish his identity be disclosed.

Mr Bevan remembered that it was Mac something, the name and, but that

didn’t mean anything to him at the time but anyway Mr Bevan has told us

that he could well understand a desire for anonymity in a small community.

Mr Bevan took the cash and I might say this is the only point where the

account of Mr Cornwell and Mr Bevan parts ways, Mr Bevan says that it

was in the more traditional brown paper bag and not an envelope but

anyway, Mr Bevan took the cash, he did count it, it was $10,000 in $100

bills. He banked it into a business account of his, a company called

Harmony Hill Pty Limited and when the funds cleared Mr Bevan then

donated if that’s the right word, donated the money to the Liberal Party

under the name of Harmony Hill.

Now I understand that Mr McCloy will deny that this ever occurred. It will

be a matter for the Commission as to whether or not Mr McCloy is believed

on that although it would seem a very strange story for Mr Cornwell and Mr

Bevan to invent. If this exchange did occur, and especially if Mr McCloy

continues to maintain that it did not, then the Commission would be entitled

to draw an inference that the payment was made with malign intent.

* I want to say something now about Andrew Cornwell and about Tim Owen.

Both Mr Cornwell and Mr Owen were outstanding candidates for

Parliament, each had a lucrative career and each was making a sacrifice in

seeking political office. Neither was a career politician, they were not party

machine men and they were being enlisted by the Liberal Party because they

were outstanding candidates. One can see how the experience of each made

them susceptible to being manipulated by wealthy individuals who wanted

political preferences, especially if those wealthy individuals had pre-existing

support of elements within the Party machine.

Mr Cornwell has been helpful to ICAC. He has given cooperation. His

actions may have been unwise but it would seem to us, this is just an

expression of opining between Mr O’Mahoney and myself, but it would

seem to us that those actions may have been the product of a degree of

inexperience in the face of high pressure tactics from some pretty

determined characters. I should add that there is no evidence which

suggests that Mr Cornwell actually gave any preferences to Mr McCloy or

Mr Grugeon.

Mr Owen might be in the same class. It remains to be seen the extent to

which he cooperates with this inquiry. Mr Owen was brought into the

campaign late, he was surrounded by persons whose motives were not pure.

There is hard evidence of misdeeds in the campaign in Newcastle and the

Commission expects and is entitled to expect that it will get the full

cooperation of Mr Owen.

* MR WATSON: Now, Mr Bosman, I’m not going to labour this because the

statement will speak for itself, but I feel as though people are entitled to

know something of your background, those who haven’t read the statement.

You’ve had plenty of experience in the Liberal Party and managing

campaigns?---I have.

I’ll just give some examples. You’ve been a campaign manager for the

former Prime Minister, Mr Howard?---Correct.

And you were the campaign manager for John Alexander when he won back

Bennelong?---I was.

And in 2007 the Liberal Party came to you and asked you if you would

provide your services. I just said 2007?---2011.

Yeah, I’m way behind aren’t I? It’s a poor start, my first witness. In 2011

the New South Wales Liberal Party came to you and asked you to provide

your services to helping campaigns which were being conducted on the

Central Coast and in the Hunter?---It was actually in 2010, November 2010.

They came to you for the 2011 campaign?---Correct.

And I think you were given a fairly dramatic title, I think it was called

battleground director?---I was.

And so was the battleground director you were looking after two sitting

members and a number of other candidates who were trying to win seats?

---Correct.

I’ll just detail those. In terms of the Central Coast you were looking after

the campaign for a sitting member, that’s Chris Hartcher?---Yes.

And the seat was Terrigal?---Yes.

And on the Central Coast there were three candidates who were trying to

win from Labor seats, Darren Webber at Wyong?---Yes.

Chris Spence at The Entrance?---Yes.

And Chris Holstein at Gosford?---Correct.

In the Hunter you were looking after one sitting member, that was Craig

Baumann who was the Member for Port Stephens?---Yes.

And you were also looking after four candidates who were trying to win

seats from Labor, the first was Tim Owen in Newcastle?---Yes.

Another was Andrew Cornwell in Charlestown?---Yes.

And another was Garry Edwards in Swansea?---Yes.

And the fourth was Robyn Parker in Maitland?---That’s correct.

Now your work as I understand it was to oversee the campaign to make sure

that they were in the first place complying with the requirements of the

Liberal Party?---My focus was on the campaigns for the seats we were

trying to win, the sitting member seats I was not really involved in their

campaigns.

All right. I should have made that clear. In terms of the sitting members,

that’s Mr Hartcher and Mr Baumann, the Liberal Party was actually quite

confident that they would retain those seats in the 2011 election?---Yes.

And if we just go back to the detail of it, during any election campaign more

time is devoted to those seats which are in the other party’s hands but which

are winnable?---Yes, unless it’s a very marginal seat that you’re holding and

you want to hold onto it.