NSW Independent Commission Against Corruption 'Operation Spicer': you saw the telemovie now read the book

The NSW Independent Commission Against Corruption (ICAC) investigation named Operation Spicer ran for approximately five months and claimed a number of political scalps including that of the then NSW Coalition Premier Barry O'Farrell.

Operation Spicer hearings were a feature of nightly news reports and journalists' live tweeting during this period.

Given the number of legal challenges mounted against ICAC since those hearings ended the final inquiry report has only now been released to the general public. 

In its media release of 30 August 2016 ICAC states:

Operation Spicer investigation has exposed prohibited donations, fund channelling and non-disclosures in the NSW Liberal Party’s 2011 state election campaign.

The Commission’s report, Investigation into NSW Liberal Party electoral funding for the 2011 state election campaign and other matters, was made public today. The ICAC’s findings include that Raymond Carter, Andrew Cornwell, Garry Edwards, the Hon Michael Gallacher MLC, Nabil Gazal Jnr, Nicholas Gazal, Hilton Grugeon, Christopher Hartcher, Timothy Koelma, Jeffrey McCloy, Timothy Owen, Christopher Spence, Hugh Thomson and Darren Williams acted with the intention of evading laws under the Election Funding, Expenditure and Disclosures Act 1981 (the election funding laws) relating to the disclosure of political donations and the ban on donations from property developers.

Messrs Grugeon, Hartcher, Koelma, McCloy, Owen, Thomson and Williams were also found to have acted with the intention of evading the election funding laws relating to caps on political donations. The Commission also found that Craig Baumann, Nicholas Di Girolamo, Troy Palmer and Darren Webber acted with the intention of evading the election funding laws relating to the disclosure of political donations and that Bart Bassett knowingly solicited a political donation from a property developer.

The ICAC found that during November and December 2010 the Free Enterprise Foundation was used to channel donations to the NSW Liberal Party for its 2011 state election campaign so that the identity of the true donors was disguised. A substantial portion of the $693,000 provided by the foundation and used by the NSW Liberal Party in the campaign originated from donors who were property developers and, therefore, prohibited donors under the election funding laws.

Undisclosed political donations were also channelled through a business, Eightbyfive, to benefit Liberal Party 2011 state election campaigns on the Central Coast. These donations included donations from property developers and donations in excess of the applicable caps on donations.

The ICAC also found that there were payments made by property developers, who were prohibited donors, to help fund NSW Liberal Party candidates’ campaigns in the Hunter. The true nature of these payments was disguised, for example, as consultancy services or funnelled through another company with the intention of evading the election funding laws.

The above are findings of fact, not findings of corrupt conduct. As explained in the Foreword to the report, the ICAC cannot make corrupt conduct findings in cases of failure to comply with the requirements of the election funding laws where, although those failures could have affected the exercise of official functions of the then Election Funding Authority of NSW, officers of that authority were not involved in any wrongdoing.

The ICAC makes a finding of serious corrupt conduct against Joseph Tripodi for, sometime prior to 16 February 2011, misusing his position as a member of Parliament to improperly provide an advantage to Buildev by providing to Darren Williams of that company a copy of the confidential 4 February 2011 NSW Treasury report, Review of Proposed Uses of Mayfield and Intertrade Lands at Newcastle Port.

The Commission’s report notes that at the relevant time proceedings for an offence under the election funding laws had to be commenced within three years from the time the offence was committed. As the Operation Spicer public inquiry did not conclude until September 2014, and the matters canvassed in the report occurred mostly from 2009 to 2011, a prosecution for relevant offences is now statute barred.

Here are excerpts from the final report, INVESTIGATION INTO NSW LIBERAL PARTY ELECTORAL FUNDING FOR THE 2011 STATE ELECTION CAMPAIGN AND OTHER MATTERS: ICAC REPORT AUGUST 2016:

 Excerpt One:

Chapter 34 of this report contains statements made pursuant to s 74A(2) of the ICAC Act that the Commission is of the opinion that consideration should be given to obtaining the advice of the Director of Public Prosecutions (DPP) with respect to the prosecution of the following persons:

* Samantha Brookes for two offences of giving false or misleading evidence under s 87 of the ICAC Act • Andrew Cornwell for two offences of giving false or misleading evidence under s 87 of the ICAC Act [Wife of former Liberal MP for Charlestown Andrew Cornwell]

* Timothy Gunasinghe for an offence of giving false or misleading evidence under s 87 of the ICAC Act [GM /Director at Commercialhq]

* Christopher Hartcher for an offence of larceny [former Liberal MP for Terrigal & NSW Minister for State, Minister for Resources and Energy, Minister for Central Coast]

* Timothy Koelma for three offences of giving false or misleading evidence under s 87 of the ICAC Act [Proprietor, Eightbyfive]

* William Saddington for an offence of giving false or misleading evidence under s 87 of the ICAC Act [Director, PW Saddington & Sons Pty Ltd]

* Joseph Tripodi for the common law offence of misconduct in public office. [former Labor MP for Fairfield] 

Note: My red annotations

Excerpt Two:

Set out below are some of the principal factual findings made by the Commission.

* Sometime shortly prior to 16 March 2011, Nathan Tinkler offered to make a political donation to Jodi McKay’s election campaign. In making this offer, Mr Tinkler was attempting to induce Ms McKay to accept a donation from a person she knew to be a prohibited donor and which would be falsely disclosed to the Election Funding Authority as coming from private individuals. Mr Tinkler knew at the time he made the offer that he was a prohibited donor and was not able to make a political donation and that Ms McKay was not able to accept a political donation from him (chapter 11).

* Each of Mr Williams, David Sharpe and Ann Wills of Buildev played an active part in the “Stop Jodi’s Trucks” mailout campaign, which was designed to damage Ms McKay’s prospects of re-election. Given its inherent political nature, the expenditure on the leaflets amounted to “electoral communication expenditure”, as defined by the Election Funding Act. This expenditure was incurred in the period between 1 January 2011 and the end of the polling day for the 2011 NSW state election and was therefore incurred within the “capped expenditure period” as defined in s 95H of the Election Funding Act. As the electoral communication expenditure exceeded $2,000 in a capped expenditure period, Buildev was operating as a “third-party campaigner” as defined in s 4 of the Election Funding Act. Buildev failed to register as a third-party campaigner as required by s 96AA of the Election Funding Act and failed to disclose to the Election Funding Authority its electoral communication expenditure as required by s 88(1A)(a) of the Election Funding Act (chapter 11).

* Mr Tripodi played a central role in the Stop Jodi’s Trucks campaign by nominating the printer for the mailout pamphlets and involving himself in the drafting and design process for the pamphlets (chapter 11).

* During November and December 2010, the Free Enterprise Foundation was used to channel donations to the NSW Liberal Party for its 2011 NSW state election campaign so that the identity of the true donors was disguised. A substantial portion of the $693,000 provided by the Free Enterprise Foundation and used by the NSW Liberal Party in its 2011 state election campaign originated from donors who were property developers and, therefore, prohibited under the Election Funding Act from making political donations (chapter 15).

* Each of Simon McInnes, Paul Nicolaou and Anthony Bandle knowingly used the Free Enterprise Foundation to channel political donations, including political donations from property developers, to the NSW Liberal Party to fund its 2011 state election campaign so that the identity of the true donors was disguised from the Election Funding Authority (chapter 15).

* Timothy Koelma used his business, Eightbyfive, to receive and channel political donations for the benefit of Christopher Hartcher, Christopher Spence, Darren Webber and the NSW Liberal Party for the 2011 Central Coast election campaign with the intention of evading the election funding laws relating to disclosure of political donations, the ban on donations from property developers, which operated from 14 December 2009, and, in relation to payments made after 1 January 2011, the applicable cap on donations. The funds obtained and channelled in this way were used for the purposes of the NSW Liberal Party 2011 election campaigns in the seats of Terrigal, The Entrance and Wyong. Mr Koelma directly benefited from the donations through Eightbyfive, as he was able to draw from those funds to give himself a salary, thereby, enabling him to work for Mr Hartcher on the 2011 NSW state election campaign. Mr Koelma subsequently obtained full-time employment in Mr Hartcher’s ministerial office after the 2011 election (chapter 17).

* Mr Hartcher was involved in the establishment of Eightbyfive and took an active part in using Eightbyfive to channel political donations from Australian Water Holdings Pty Ltd, Gazcorp Pty Ltd and Patinack Farm Pty Ltd for the benefit of the NSW Liberal Party, himself, Mr Spence and Mr Webber with the intention of evading the election funding laws relating to disclosure of political donations, the ban on donations from property developers (in the case of Gazcorp) and, in relation to payments made after 1 January 2011, the applicable cap on donations. Mr Hartcher benefited from this arrangement because part of the funds channelled through Eightbyfive enabled Mr Koelma to work for him on the 2011 NSW state election campaign at no cost to Mr Hartcher, while other funds channelled through Eightbyfive ensured that Mr Hartcher’s likeminded political colleagues were funded to campaign for the Central Coast seats of Wyong and The Entrance (chapter 17).

* Mr Hartcher was a party to an arrangement with Nicholas Di Girolamo and Mr Koelma, whereby Mr Di Girolamo made regular payments through Australian Water Holdings to Eightbyfive. Under this arrangement, between April 2009 and May 2011, Eightbyfive received $183,342.50 from Australian Water Holdings. These payments were ostensibly for the provision of services by Eightbyfive to Australian Water Holdings but were in fact political donations made to assist Mr Hartcher by providing funds to Mr Koelma so that Mr Koelma could work for Mr Hartcher in the lead up to the 2011 NSW state election. Mr Hartcher and the others involved in this arrangement intended to evade the election funding laws relating to the disclosure of political donations. The payments totalling $36,668.50, made after 1 January 2011, exceeded the applicable cap on political donations (chapter 18).

* Mr Hartcher, Nabil Gazal Junior, Nicholas Gazal, Mr Koelma and Mr Spence (the NSW Liberal Party candidate for the seat of The Entrance) were parties to an arrangement whereby, between May 2010 and April 2011, Gazcorp made payments totalling $121,000 to Eightbyfive. These payments were ostensibly for the provision of services by Eightbyfive to Gazcorp but were in fact political donations which were mainly used to help fund Mr Spence so that he could work on the Central Coast election campaign and on his campaign for the seat of The Entrance. Mr Hartcher, Nabil Gazal Jnr, Nicholas Gazal, Mr Koelma and Mr Spence intended by this arrangement to evade the disclosure requirements of the Election Funding Act and the ban on the making and accepting of political donations from property developers. The payments totalling $33,000, made after 1 January 2011, exceeded the applicable cap on political donations (chapter 19).

* Mr Hartcher, Mr Koelma, the Hon Michael Gallacher MLC, Troy Palmer and Mr Williams were parties to an arrangement whereby, between July 2010 and March 2011, Patinack Farm made payments totalling $66,000 to Eightbyfive. These payments were ostensibly for the provision of services by Eightbyfive to Patinack Farm but were in fact political donations to help fund the NSW Liberal Party 2011 Central Coast election campaign. The parties to this arrangement intended to evade the disclosure requirements of the Election Funding Act. The payments made after 1 January 2011, totalling $33,000, exceeded the applicable caps on political donations. Although the payments to Eightbyfive were made by Patinack Farm, the arrangement was organised through Buildev, a property developer (chapter 20).

* Mr Koelma and Mr Webber (the NSW Liberal Party candidate for the seat of Wyong) were parties to an arrangement whereby, between 2010 and 2011, Mr Koelma’s business, Eightbyfive, made payments totalling at least $34,650, and up to $49,500, to Mr Webber. These payments were ostensibly for the provision of services by Mr Webber to Eightbyfive but were in fact political donations to help fund Mr Webber’s 2011 election campaign for the seat of Wyong. The parties to this arrangement intended to evade the disclosure requirements of the Election Funding Act. The payments made after 1 January 2011 exceeded the applicable caps on political donations (chapter 20).

* Raymond Carter used the Free Enterprise Foundation to channel political donations to the NSW Liberal Party for its 2011 NSW state election campaign so that the identity of the true donor was disguised from the Election Funding Authority. A portion of this money was from property developers (chapter 21).

* Mr Carter and Mr Koelma entered into an arrangement to use Mr Koelma’s business, Eightbyfive, to channel political donations to the NSW Liberal Party for the 2011 Central Coast election campaign with the intention of evading the Election Funding Act laws relating to disclosure to the Election Funding Authority of political donations and the ban on accepting political donations from property developers. The political donations obtained by Mr Carter under this scheme included $5,000 from each of LA Commercial Pty Ltd, Yeramba Estates Pty Ltd and Brentwood Village Pty Ltd, and $2,200 from Crown Consortium Pty Ltd (chapter 21).

* In March 2011, Mr Carter used a business, Mickey Tech, with the intention of evading the Election Funding Act laws relating to disclosure of political donations by disguising from the Election Funding Authority political donations of $2,000 from INE Pty Ltd and $2,000 from Maggiotto Building Pty Ltd. In each case, the money was sought and received by Mr Carter as a political donation for the 2011 NSW state election campaign. Although at the time Mr Carter received the money he intended to apply all the money for the purposes of the election campaign, he eventually only applied $2,400 for this purpose, the balance being applied to private use (chapter 21).

* In March 2011, Mr Hartcher received three bank cheques payable to the NSW Liberal Party totalling $4,000. They were received by Mr Hartcher for the benefit of the NSW Liberal Party for the March 2011 state election campaign. In November 2011, some eight months after the election, Mr Hartcher arranged for the cheques to be paid into the trust account of Hartcher Reid, a legal firm, and for that firm to draw a cheque for $4,000 in favour of Mickey Tech, a business owned by Mr Carter’s partner. After the $4,000 was deposited into that account, it was withdrawn in cash by Mr Carter and given to Mr Hartcher. These steps are inconsistent with an intention on the part of Mr Hartcher to apply the $4,000 for the benefit of the NSW Liberal Party (chapter 23).

* In about November 2010, Mr Gallacher sought a political donation from Mr Sharpe of Buildev by inviting him to attend a New Year’s Eve political fundraising function for which Mr Sharpe or Buildev would make a payment. Mr Gallacher knew that they were property developers, and he sought the political donation with the intention of evading the election funding laws relating to the ban on property developers making political donations (chapter 25).

* In late 2010, Mr Gallacher, Mr Hartcher and Mr Williams of Buildev were involved in an arrangement whereby two political donations totalling $53,000 were provided to the NSW Liberal Party for use in its 2011 election campaigns for the seats of Newcastle and Londonderry. To facilitate this arrangement, on 13 December 2010, Mr Palmer, a director of Boardwalk Resources Limited, a company of which Mr Tinkler was the major shareholder, drew two cheques totalling $53,000 payable to the Free Enterprise Foundation. These were provided to Mr Hartcher who arranged for them to be sent to Mr Nicolaou. Mr Nicolaou sent the cheques to the Free Enterprise Foundation. The Free Enterprise Foundation subsequently sent money to the NSW Liberal Party, which included the $53,000. Of the $53,000, some $35,000 was used to help fund Timothy Owen’s 2011 election campaign in the seat of Newcastle and $18,000 was used towards the purchase of a key seats package for Bart Bassett’s 2011 election campaign in the seat of Londonderry. Although the cheques for the donations were drawn on the account of Boardwalk Resources, they were made for Buildev, a property developer. Each of Mr Gallacher, Mr Hartcher and Mr Williams entered into this arrangement with the intention of evading the Election Funding Act laws relating to the accurate disclosure to the Election Funding Authority of political donations (chapter 26).

* In about February 2011, Jeffrey McCloy gave HughThomson $10,000 in cash as a political donation to fund Mr Owen’s 2011 election campaign for the seat of Newcastle with the intention of evading the Election Funding Act laws relating to the ban on the making of political donations by property developers and the applicable cap on political donations. By not reporting the donation, he intended to evade the disclosure requirements of the Election Funding Act. In accepting the political donation, Mr Thompson intended to evade the Election Funding Act laws relating to the ban on accepting political donations from property developers and the applicable cap on political donations. By not ensuring the donation was disclosed, he intended to evade the disclosure requirements of the Election Funding Act (chapter 27).

* In early 2011, Mr McCloy gave Mr Owen $10,000 in cash as a political donation to fund Mr Owen’s 2011 election campaign. In making the payment, Mr McCloy intended to evade the Election Funding Act laws relating to the ban on the making of political donations by property developers and the applicable cap on political donations. By not reporting the donation, he intended to evade the disclosure requirements of the Election Funding Act. In accepting the political donation, Mr Owen intended to evade the Election Funding Act laws relating to the ban on accepting political donations from property developers and the applicable cap on political donations. By not ensuring the donation was disclosed, he intended to evade the disclosure requirements of the Election Funding Act (chapter 27).

* In early 2011, Hilton Grugeon gave Mr Thomson $10,000 in cash as a political donation to fund Mr Owen’s 2011 election campaign. In making the payment, Mr Grugeon intended to evade the Election Funding Act laws relating to the ban on the making of political donations by property developers and the applicable cap on political donations. By not reporting the donation, he intended to evade the disclosure requirements of the Election Funding Act. In accepting the political donation, Mr Thompson intended to evade the Election Funding Act laws relating to the ban on accepting political donations from property developers and the applicable cap on political donations. By not ensuring the donation was disclosed, he intended to evade the disclosure requirements of the Election Funding Act (chapter 27).

* Services provided by Mezzanine Media Australia Pty Ltd for Mr Owen’s 2011 election campaign were paid for, in part, by a political donation of $5,000 made by Keith Stronach, a property developer. The payment evaded the Election Funding Act laws relating to the ban on the making of political donations by property developers. The political donation was not disclosed as required by the Election Funding Act. Mr Owen and Mr Thomson were aware that Mr Stronach was a property developer and were aware that Mr Stronach paid money towards Mr Owen’s election campaign (chapter 27).

* Services provided by Mezzanine Media Australia for Mr Owen’s 2011 election campaign were paid for, in part, by a political donation of $14,190 organised by Mr Williams on behalf of Buildev, a property developer. In organising the payment, Mr  Williams intended to evade the Election Funding Act laws relating to the ban on the making of political donations by property developers and the applicable cap on political donations. By not reporting the donation he intended to evade the disclosure requirements of the Election Funding Act. Mr Owen and Mr Thomson were aware that Buildev was a property developer and that it had paid money towards Mr Owen’s election campaign (chapter 27).

* Mr Gallacher was responsible for proposing to Mr McCloy and Mr Grugeon an arrangement whereby each of them would contribute to the payment of Luke Grant for his work on Mr Owen’s 2011 election campaign. He did so with the intention that the Election Funding Act laws in relation to the prohibition on political donations from property developers and the requirements for the disclosure of political donations to the Election Funding Authority would be evaded (chapter 27).

* Mr Owen, Mr Thompson, Mr Grugeon and Mr McCloy were parties to an arrangement whereby payments totalling $19,875 made to Mr Grant for his work on Mr Owen’s 2011 election campaign were falsely attributed to services allegedly provided to companies operated by Mr McCloy and Mr Grugeon. Those involved in this arrangement intended to evade the Election Funding Act laws in relation to the prohibition on political donations from property developers and the requirements for the disclosure of political donations to the Election Funding Authority. The payments were also in excess of the caps imposed on individual donors (chapter 27).

* Services provided by Joshua Hodges for Mr Owen’s 2011 election campaign were paid for, in part, by a political donation of $3,998.50 made by William Saddington of PW Saddington & Sons Pty Ltd. The payment was disguised as being for consultancy services provided to that company. The payment had the effect of evading the disclosure requirements of the Election Funding Act. Mr Owen and Mr Thomson were aware that Mr Saddington was contributing to Mr Owen’s election campaign expenses by paying Mr Hodges. They did not ensure that the donation was disclosed as required by the Election Funding Act (chapter 27).

* Services provided by Australian Decal Sales and Manufacturing Co Pty Ltd for Mr Owen’s 2011 election campaign were paid for in August 2011 by a political donation of $3,198.80 organised by Mr Williams on behalf of Buildev, a property developer. By organising the payment, Mr Williams intended to evade the Election Funding Act laws relating to the ban on the making of political donations by property developers and the disclosure requirements of the Election Funding Act. Mr Owen and Mr Thomson were aware this political donation had been made by a property developer and participated in this arrangement with the intention of evading the Election Funding Act laws relating to the ban on accepting political donations from property developers. They did not ensure the donation was disclosed as required by the Election Funding Act (chapter 27).

* During the 2011 NSW state election campaign, a third-party campaign known as “FedUp” was conducted by Rolly De With, Neil Slater and Paul Murphy using the name of a local business association, the Newcastle Alliance. The purpose of the campaign was to assist in defeating the sitting member for the seat of Newcastle, Ms McKay, in the 2011 NSW state election. In March 2011, a payment of $50,000 was arranged by Mr Williams of Buildev and authorised by Mr Tinkler to fund the campaign. The payment was ostensibly made by Serene Lodge Racing Pty Ltd but was in fact money from Mr Tinkler and was made for Buildev, a property developer. The $50,000 payment was a political donation and was in excess of the $2,000 cap on political donations made for the benefit of a third-party campaigner. The political donation was not disclosed to the Election Funding Authority by Buildev, Serene Lodge Racing or Mr Tinkler (chapter 28).

* On 6 October 2010, Mr McCloy paid $10,000 in cash to Andrew Cornwell, the NSW Liberal Party candidate for the seat of Charlestown, as a political donation for Andrew Cornwell’s 2011 election campaign. By making the donation, Mr McCloy intended to evade the Election Funding Act laws relating to the ban on property developers making political donations and the requirement for the disclosure of political donations. By accepting the donation Andrew Cornwell intended to evade the Election Funding Act requirement relating to the ban on property developers making political donations and the requirement for the accurate disclosure of political donations (chapter 29).

* Andrew Cornwell, his wife, Samantha Brookes, and Mr Grugeon were parties to an arrangement involving the pretence that a payment of $10,120 made in early 2011 by Mr Grugeon, a property developer, was for a painting. The $10,120 was in fact a political donation made by Mr Grugeon to fund Andrew Cornwell’s 2011 NSW state election campaign. In participating in this arrangement, Mr Grugeon intended to evade the Election Funding Act laws relating to the ban on the making of donations by property developers and the requirement for disclosure of political donations. In participating in this arrangement, Andrew Cornwell intended to evade the Election Funding Act laws relating to the ban on accepting political donations from property developers, and the requirement for accurate disclosure of political donations received. The payment exceeded the applicable cap on political donations (chapter 29).

* During the 2011 NSW state election campaign, Garry Edwards, the NSW Liberal Party candidate for the seat of Swansea, received a political donation by way of a cash payment of about $1,500 from Mr McCloy, a property developer. Mr Edwards accepted the donation with the intention of evading the election funding laws relating to the ban on accepting political donations from property developers and the requirements for disclosure of political donations. Mr McCloy knew he was making a political donation and that, as a property developer, he was prohibited from making such a donation (chapter 30).

* In 2007, Craig Baumann, the NSW Liberal Party candidate for the seat of Port Stephens, entered into an arrangement with Mr McCloy and Mr Grugeon to disguise from the Election Funding Authority the fact that companies associated with Mr McCloy and Mr Grugeon had donated $79,684 towards Mr Baumann’s 2007 NSW election campaign. As part of this arrangement, a company associated with Mr McCloy made a political donation of $32,604 and a company associated with Mr Grugeon made a political donation of $47,080. These political donations were paid to Mr Baumann’s company, Mambare Pty Ltd, which, in turn, paid the money to the Medowie branch of the NSW Liberal Party to be used for Mr Baumann’s 2007 election campaign. Mr Baumann caused Mambare to lodge a declaration with the Election Funding Authority that falsely claimed that it had donated the money to the NSW Liberal Party. Mr Baumann did so with the intention of evading the election funding laws relating to the accurate disclosure of political donations (chapter 31).

* In about November 2010, Mr Baumann entered into an arrangement with Vincent Heufel with the intention of evading the Election Funding Act laws relating to the truthful disclosure of political donations. Under this arrangement, Mr Heufel made a donation of $100,000 for Mr Baumann’s election campaign and Mr Baumann reduced the amount his company, Mambare, charged for building Mr Heufel’s house by that amount. This was done so that Mr Heufel could falsely represent that he was responsible for making the political donation, rather than Mr Baumann’s company and so that Mambare could evade disclosing that it had made a political donation for Mr Baumann’s 2011 NSW state election campaign (chapter 31).

* In 2010, for the purposes of his 2011 NSW state election campaign, Mr Bassett, the NSW Liberal Party candidate for the seat of Londonderry, solicited a political donation from Buildev, a property developer. This culminated in the drawing of a cheque, dated 13 December 2010, for $18,000 on the account of Boardwalk Resources, which was payable to the Free Enterprise Foundation. The Free Enterprise Foundation subsequently sent money to the NSW Liberal Party, which included the $18,000. The $18,000 was used towards the purchase of a key seats package for Mr Bassett’s 2011 election campaign in the seat of Londonderry. Although the cheque for $18,000 was drawn on the account of Boardwalk Resources, the donation was made for Buildev. Mr Bassett was aware at the time he solicited the political donation that Buildev was a property developer and knew it was not able to make a political donation and he was not able to accept a political donation from a property developer (chapter 32).

Full 172 page report here.

Australian Federal Election 2016: friends of the Liberal Party

It is wise to be careful who you lie down with, a lesson the Abbott-Turnbull Government chooses to ignore.....

The Age, 17 June 2016:

Members of an extremist Christian sect which has covered up child sex abuse have given secret, coordinated donations to the Liberal Party.

Dozens of Exclusive Brethren members - who practice a radical doctrine of "separation" and are not permitted to vote - donated more than $67,000 to the Liberal Party on the same day in December 2010.

The donations were revealed in documents tabled at the NSW Independent Commission Against Corruption during its inquiry into the source of funds flowing into Liberal Party coffers.

The Exclusive Brethren, recently rebranded the "Plymouth Brethren Christian Church", was described by former Prime Minister Kevin Rudd as "an extremist cult" which breaks up families. But the Liberal party operatives who accepted the en masse donations described them as "friends".

The church first came to public attention in 2006 when it was revealed the group had raised and spent $370,461 to influence the 2004 election on behalf of John Howard, with whom they were close……

Good Weekend today reveals that Mr Hales ordered that some victims of child sexual abuse be paid off to keep quiet. One victim was told his abuse was a "family matter," and nothing to do with the church, even though the church had placed the child with his abuser.

In 2003, the Brethren first excommunicated and then reinstated a man to the church despite overwhelming evidence that he had sexually abused two young girls who were living with him and attending the school where he was a trustee. The Brethren ignored the girls' letters, direct to Mr Hales, in which they begged him not to bring their abuser back. 

The man was later convicted and jailed for offences including sexual intercourse with a child under 10.

The Brethren have issued a number of legal threats in recent weeks to try to stop the Good Weekend story being published. In a statement it said it was "misinformed and plainly wrong" to suggest the church had a problem with sex abuse. The Church "considers any abuse of any member of society abhorrent," the statement said.

Documents tabled at the NSW Independent Commission Against Corruption's Operation Spicer show 62 separate donors, all known members of the Brethren church, sent donations to the Liberal Party's alleged slush fund, the Free Enterprise Foundation.

Each donation was in individual amounts of $1500 or less, and appeared on a document labelled, "Friends". 

According to the NSW Electoral Commission, the Free Enterprise Foundation was used to "channel and disguise" donations "by major political donors, some of whom were prohibited donors" to the Liberal Party. While individually the Brethren were not "major" donors, together their contribution was well above the legal disclosure threshold. It suggests they may have deliberately tried to avoid any need to disclose their collective contribution…..

Brethren members run highly successful businesses, a network of charities, and received $26.6 million in government funding for their private school system…..

Read the full article here.

The Canberra Times, 18 June 2016:

Malcolm Turnbull says he has "no criticisms or complaints" to make of the controversial Exclusive Brethren and is happy for the extremist Christian sect to continue donating to the Liberal Party…..

Mr Turnbull says he has no problem with the sect and religious groups are entitled to manage their own affairs….

"I've got no criticisms or complaints about that organisation," he said. "As you know, everybody is free to make political contributions."…..

The Exclusive Brethren - recently rebranded the "Plymouth Brethren Christian Church" - practice a radical doctrine of "separation" and are not permitted to vote.

Brethren members cannot eat or socialise with "worldly" people, and excommunicated members are usually prevented from seeing their families, including their own children.

The group's wealthy leader, Sydney-based Bruce D. Hales - known as "the Elect" - has told his members to maintain an "utter hatred" of the outside world.

He recently addressed a sermon to a mentally tormented young member of his flock saying it would be better to "finish yourself off" with poison than communicate with members of his own family.

Fairfax Media has revealed Mr Hales ordered that some victims of child sexual abuse be paid off to keep quiet…..

The Age, 19 June 2016:

Prime Minister Malcolm Turnbull's Wentworth electorate appears to operate an under-the-radar donations fund, with little disclosure of what it earns, from whom, or how it's spent.

A Fairfax Media investigation has revealed the Wentworth Forum, a fundraising vehicle that raised $1.4 million during Mr Turnbull's first stint as Liberal Party leader, appears still to be active, despite claims by a spokesman for the Prime Minster "the forum ceased to operate in 2009".

Other donors report putting cash into the "Wentworth FEC", although that body itself does not report receipts or distributions.

Australia's patchwork and opaque disclosure regime makes it virtually impossible to make sense of how much money is flowing in and out of Mr Turnbull's electorate's fundraising entities.

About 20 of Australia's richest 200 people, including billionaires Kerry Stokes and Frank Lowy, kicked in to the Wentworth Forum between 2007 and 2009, with membership then costing up to $55,000.

Prime Minister Malcolm Turnbull's Wentworth electorate appears to operate an under-the-radar donations fund, with little disclosure of what it earns, from whom, or how it's spent.

A Fairfax Media investigation has revealed the Wentworth Forum, a fundraising vehicle that raised $1.4 million during Mr Turnbull's first stint as Liberal Party leader, appears still to be active, despite claims by a spokesman for the Prime Minster "the forum ceased to operate in 2009".

Other donors report putting cash into the "Wentworth FEC", although that body itself does not report receipts or distributions.

Australia's patchwork and opaque disclosure regime makes it virtually impossible to make sense of how much money is flowing in and out of Mr Turnbull's electorate's fundraising entities.

About 20 of Australia's richest 200 people, including billionaires Kerry Stokes and Frank Lowy, kicked in to the Wentworth Forumbetween 2007 and 2009, with membership then costing up to $55,000.

"The Wentworth Forum" maintains an active Australian Business Number and is a trading name owned by the Wentworth Federal Electoral Conference (or FEC, a structure that incorporates all party branches located within the Prime Minister's federal seat).

The forum's website remains live, listing former party treasurer Michael Yabsley​ as honorary chairman and linking to Mr Turnbull's and the party's websites. Its domain registration was updated by an employee of the Prime Minister's private company, Turnbull and Partners Pty Ltd, last year.

An email inquiry sent via the site was answered within hours, but, in his reply, Mr Yabsley said he had not been involved in party fundraising since 2010 and "the Wentworth Forum has not operated since 2009". Mr Yabsley recently told the ABC's Four Corners that he had known of illegitimate fundraising by the Liberal Party, and called for root-and-branch reform.

The Wentworth FEC – like the broader party itself – is an unincorporated entity, a structure not-for-profit experts say is risky for an organisation handling significant sums of money. They have no reporting obligations, cannot hold assets in their own name, cannot be sued and may not pay tax.

Neither the Wentworth Forum nor Wentworth FEC make funding disclosures to the Australian Electoral Commission as an "associated entity", unlike many other fundraising bodies associated with current senior Liberal ministers.

However, according to disclosures by donors to the NSW Electoral Commission, "Wentworth," "Wentworth FEC", "Malcolm Turnbull" or the postal address of Mr Turnbull's electorate office, received a number of political donations…..

Tasmanian Times, 9 September 2015:

See the full story here.

Liberal Party of Australia going into the 2016 federal election campaign with tattered petticoats

On 31 March 2016 The Australian revealed the names of political donors that the Liberal Party of Australia had been attempting to deny to the Australian Electoral Commission.

It is noted that property developers are banned from making donations to political parties standing for election in New South Wales.

It is noted that the Free Enterprise Foundation donated $75,000 to the NSW division of the Liberal Party in 2013-14, $225,00 to the federal division of the Liberal Party in 2012-13, $1,250,000 to the federal division in 2013-14 and another $100,000 to the federal division in 2014-15.

Those donors with a red asterisk beside their names are known to have been mentioned (or their representatives gave evidence) during NSW Independent Commission Against Corruption “Operation Spicer” hearings.

This is the list of those names as published, with my annotations:

Donations to the Free Enterprise Foundation ahead of the NSW 2011 state election

Date, donor, amount

5/11/10: Renlyn Bell Investments *, $9,900 – part-owned by Sydney property developer Garry Bonaccorso through G & R Bonaccorso Family Trust.

5/11/10: DP Smith Enterprises *, $10,000 – involved in building & development.

5/11/10: E & B Pastoral P/L *, $500 – co-owner of industrial units.

5/11/10: Walker Pearse P/L *, $500 – Central Coast business consultant, former interest in retirement village.

5/11/10: PJC Holdings P/L *, $2,000 – said to be a company connected with Arthur Maroon of Beraci Pty Ltd, a housing construction company.

5/11/10: Belside P/L *, $10,000 – directors Sam Maroon and Joe Becharra.

5/11/10: ANZ Real Estate Consultants *, $5000

5/11/10: Naletran P/L *, $3000

18/11/10: Myall Coast Health *, $500 – currently owned by Ochre Health Group.

18/11/10: Australbricks *, $5000

6/12/10: Big Country Developments *, $9900 – NSW property development company operating since 1958, sole director Peter Heskey.

6/12/10: Anthony Shepherd *, $1500 - chairman of then Liberal Prime Minister Tony Abbott's Commission of Audit.

9/12/10: TSM Projects P/L *, $750 – property development.

9/12/10: Precinct 8C Wadalba Lobby Group *, $4000 – group of land owners pushing to have their Wadalba land re-zoned for subdivision.

9/12/10: Threshold Developments P/L *, $2000 – March 2013 land rezoned at Wadalba by NSW Coalition Government.

9/12/10: Everitt & Everitt Executive Super, $750

13/12/10: Tesrol Group Projects P/L, $1499 – land developers possibly belonging to the Tesrol Group of Companies.

13/12/10: Tesrol Bridge St P/L, $1499 - possibly belonging to the Tesrol Group of Companies.

13/12/10: Seasonsrage P/L, $1499

13/12/10: Smeaton Grange P/L, $1499

13/12/10: Rumerone P/L, $1499

13/12/10: Lorset P/L, $1499

13/12/10: Kirkstall P/L, $1499

13/12/10: Epivision P/L, $1499

13/12/10: Dribonn P/L, $1499

13/12/10: Tesrol P/L, $1499 – Tesrol Group of Companies comprising property development and joinery businesses.

14/12/10: Jilliby Stage 2 Land Owners Action Group *, $4000 – 2013 NSW Coalition Government attitude to development in Wyong Valley said to soften.

14/12/10: Holland Fine Art & Cars P/L , $10,000 – In 2013-2014 as a co-defendant the company was successfully sued over sale of forged artwork.

16/12/10: Transnational Storage P/L *, $12,500 – a Tuggerah NSW business.

16/12/10: Boardwalk Resources P/L *, $53,000 – then an unlisted mining exploration and development company with coal exploration assets in NSW & Qld subject to investigation during NSW ICAC. Operation Spicer

16/12/10: Sunbeat Bissap P/L, $10,000 – Chinese global trader of juice, tea and jellies.

16/12/10: Adaptive P/L, $500

16/12/10: T & R Pridham, $500

16/12/10: Adaptive P/L, $800

16/12/10: Aline Pumps Sales & Service *, $1490

16/12/10: JR & JM Pridham, $1500

16/12/10: SFH P/L ATF Stead Family Trust, $600

16/12/10: SFH P/L ATF Stead Family Trust, $375

16/12/10: SFH P/L ATF Stead Family Trust, $500

16/12/10: PR & GA Monks, $1000

16/12/10: RA & EJ Kennard, $1500

16/12/10: T & GM Pridham, $500

16/12/10: JS & SJ Lindqvist, $50

16/12/10: DG Firth & MJ Firth, $1490

16/12/10: DJ & CR Kennard, $1500

16/12/10: Jerry & Debbie Kennard, $1500

16/12/10: KJ & SE Truswell, $1200

16/12/10: Allsteel Products P/L, $1499

16/12/10: EJ & JG Fooks, $1000

16/12/10: BD & RG Gooden, $1499

16/12/10: JP & DR Monks, $1490

16/12/10: Interspan Industries P/L, $1490

16/12/10: The Advance Precision Trust, $1499

16/12/10: NJ & PG Kennard, $750

16/12/10: NJ & PG Kennard, $750

16/12/10: Fooks P/L, $1499

16/12/10: Fooks P/L, $1499

16/12/10: Fooks P/L, $1499

16/12/10: Weltson P/L, $5000

17/12/10: Petra Civil P/L, $2000

17/12/10: Elmslea Land Developments *, $20,000 – wanted land rezoned to expand Elmslea Village, proposal still being progressed by local council in 2015.

17/12/10: Swift Exhaust, $1499

17/12/10: A & SA Davis, $1450

17/12/10: The Heaney Family Trust, $1499

17/12/10: CJ & JR Shore, $1499

17/12/10: Fleetwood Urban P/L, $1499

17/12/10: Windsor Farm Equipment, $1499

17/12/10: Printban P/L *, $10,000 – a property lessor company on the NSW Central Coast associated with Tim Gunasinghe, general manager/ director of Commercialhq a commercial property development company located on the NSW Central Coast specializing in commercial office accommodation, retail shopping centres, specialized retail and commercial development.

20/12/10: Town & Country Lands P/L, $10,000 - lawn and garden service company.

20/12/10: Soul Pattinson *, $50,000 – Washington H. Soul Pattinson has a property investment portfolio, which at the time of this donation had cross-shareholdings with Brickworks since 1969. Soul Pattinson donated $50,000 dollars to the federal division of the Liberal Party in 2012-13.

20/12/10: Brickworks *, $125,000 – brick manufacturing business & property developer through its Land and Development Group. Donated $100,000 to the NSW division of the Liberal Party in 2013-14. and 21/12/10: Westfield Limited *, $150,000 – previously Westfield Development Corporation Limited and now Scentre Limited, a large international property development company registered in NSW. Westfield Limited donated $150,000 to the federal division of the Liberal Party in 2012-13.

22/12/10: Walker Group Holdings *, $100,000 – part of a large property development group established in 1964 and headquartered in Sydney NSW. The Walker Group donated $20,000 to the NSW division of the Liberal Party in 2013-14 and $100,000 to the federal division of the Liberal Party in 2012-13.

Total: $680,214

FEDERAL LIBERAL PARTY DONATIONS

Donations to the Free Enterprise Foundation

Date, donor, amount

28/07/10: Meriton Premier Apartments *, $25,000

29/07/10: Brickworks *, $50,000 – donated $150,000 to federal division Liberal Party in 2012-13.

5/8/10: Xiang Rong (Aust) Inv Group P/L *, $20,000

19/08/10: Crown International Holdings *, $10,000

19/08/10: Vaste Developments P/L, $3000

8/9/10: Lin Mingchi, $5000

Total: $113,000

Liberal Party of Australia: when faced with corruption allegations first ignore, then deny, defy and threaten - ending all with weasel words

The Liberal Party of Australia was warned, the Liberal Party ignored, the Liberal Party denied, defied and then told political lies to the electorate…..

The general warning that went out

NSW Electoral Commission (NSWEC), 24 March 2015 Media Release:  NSW Electoral Commission to penalise failure to disclose political donations

The NSW Electoral Commission will take enforcement action against 14 entities and individuals that have missed the deadline or entirely failed to disclose political donations they received between 1 July 2014 and 1 March 2015.

The NSW Electoral Commission received 411 declarations on behalf of parties, elected members, candidates, groups and third-party campaigners for the Additional Disclosure Period in the lead-up to the 28 March State Election.

Out of the entities and individuals required to lodge a declaration, five have failed to lodge and 11 lodged a declaration after the due date, making a total of 16 contraventions.

"The Commission takes seriously the rules on disclosing political donations and will be taking enforcement action against 14 entities and individuals that, on the information known to the Commission, have broken the law," said NSW Electoral Commission Chairperson, Hon Keith Mason AC QC.

"We have issued Penalty Notices and Cautions according to the seriousness of the contravention and will also be considering a prosecution in one case."

The declarations that have been lodged are a matter of public record and are published on the NSW Electoral Commission website at: http://adp.elections.nsw.gov.au/

The declarations must disclose political donations of $1,000 or more received between 1 July 2014 and 1 March 2015. If no donations were received, declarations should have been lodged to that effect.

This additional requirement on parties and candidates applied only to the 2015 State Election and was introduced in accordance with the interim recommendations of the Panel of Experts on Political Donations.

The Panel has since delivered its final report which has proposed long term reform options on political donations.

For more information about disclosure of political donations generally or the State Elections to be held on 28 March 2015, visit the NSWEC website at http://www.elections.nsw.gov.au

Excerpt from NSW Electoral Commission 2014-15 Annual Report:

Forming a new Commission

The year saw significant structural change, following implementation of a 2013 recommendation of the Parliamentary Joint Standing Committee on Electoral Matters. The Committee found that our electoral legislation required a comprehensive review with a focus on consistency, functionality and modernisation. The Committee recommended a new electoral Act for NSW that would cover both the conduct of State elections and the regulation of campaign fi nance and disclosures, and that the new Act be administered by a single statutory corporation.

Consequently, legislative change during the year reconstituted the Commission so that it consists of the Electoral Commissioner, a former Judge as Chairperson of the Commission and a member with financial or audit skills, instead of it being constituted only by the Electoral Commissioner. The Election Funding Authority was abolished and its functions conferred on the reconstituted Commission. The new Commission is therefore responsible for administering the election funding, expenditure and disclosure scheme in NSW. The Commission’s role is also to provide “assistance” to the Electoral Commissioner in his statutory function of conducting elections.

Legislative change in 2014 also empowered the Commission to investigate and undertake enforcement actions for breaches against the Parliamentary Electorates and Elections Act 1912 and the Lobbying of Government Officials Act 2011. This has moved our function from largely administrative to a greater focus on client services and regulation, with increased investigative and enforcement activities. We now have additional objectives of promoting campaign finance transparency and enforcing compliance with the legislation.

Ignoring evidence of the Commission’s resolve in the first instance

NSWEC, 27 July 2015 Media Release: Magistrate convicts registered officer of NSW political party for failure to lodge

Mr Robert Smith, Registered Officer of the Fishing Party, was convicted on 13 July 2015, at the Downing Centre Local Court, of failure to lodge a declaration of disclosure of donations received and made and expenditure incurred pursuant to s.96H(1) of the Election Funding, Expenditure and Disclosures Act 1981 ("the Act").

Mr Smith was required to lodge a declaration with the NSW Electoral Commission, in the prescribed form, by 23 September 2013 and failed to do so. His Honour Local Court Magistrate Grogin emphasised, when sentencing Mr Smith, the importance of the transparency of political parties in relation to the declaration of political donations, regardless of the size or financial means of the political party. Grogin LCM also considered that general and specific deterrence are important considerations when sentencing for such an offence. Further, his Honour emphasised that ignorance of the law is no excuse in failing to comply with the requirements in the Act.

His Honour Grogin LCM convicted Mr Smith and ordered him to pay a fine of $2750, being the amount of the initial penalty notice issued by the NSW Electoral Commission, as well as awarding costs to the prosecutor of $5000.

The matter was investigated by the NSW Electoral Commission and prosecuted on its behalf by the Crown Solicitor's Office.

On 27 July 2015 the Commission was notified that Mr Smith has lodged an appeal of his conviction with the District Court. The matter is listed for mention on 23 September at the Sydney District Court.

"The Commission takes seriously the rules on disclosing political donations and expenditure and will take enforcement action against entities and individuals that, on the information known to the Commission, have broken the law," said NSW Electoral Commission Chairperson, Hon Keith Mason AC QC.

Ignoring its own predicament in the second instance, denying and defying

Excerpts from NSWEC, 23 March 2016 document: Final Summary of Facts – Decision re Liberal Party

20. On 1.1 February 203.6 the Acting Electoral Commissioner wrote on behalf of the Commission to the Party Agent of the Party, Mr MCInnes . The letter outlined the Commission's tentative concerns and invited submissions directed to the two legal issues mentioned above as well as the issue as to whether a final payment should be made under the Election Campaigns Fund in light of these matters.

21. The letter in reply from Mr MCInnes dated 18 February 2016 did not advance any response to the suggestion about the invalidity of The Free Enterprise Foundation "trust". The letter further asserted that the Party had and has no responsibility to disclose information relating to individual donors to the Foundation, a position that the Commission completely disputes. The invitation to remedy the deficient 201.1 declaration was firmly declined.

22. On 24 February 2016 the Commission considered whether the Party was eligible for public funding taking into account sections 70(I) and 97L(I) of the Act. The Commission was not at that stage satisfied that the Party was eligible, because the Party had failed to disclose reportable political donations for the period ending 30 June 2011.

23. Since public monies totalling $4,389,822.80 is at issue the Commission decided to give the Party a further opportunity to change its stance or satisfy the Commission that the Commission's tentative views were erroneous. A letter was sent to Mr MCInnes on 26 February 2016 enclosing a draft Summary of Facts document and inviting the Party's response.

24. On 18 March 2016, Swaab Attorneys forwarded the Party's response. None of the Summary of Facts were disputed,

25. The Party's response contended that a declaration in requisite form had been lodged and that its adequacy in terms of detail was irrelevant to the decision confronting the Commission under sections 7011) and 97L(I),

26. The Commission rejects this submission for the reasons already set out. Neither does the Commission accept the submission that the amount that must be withheld cannot exceed the total of unlawful donations involved. For one thing, this ignores the matters set out in paragraphs 2 and 3 above. On 23 March 2016 SWAAB Attorneys sent a further letter on behalf of the Party urging the Commission to release all but $693,000 of the funding claimed. After careful consideration the Commission believes it does not have discretion in this matter having regard to the terms of sections 70(I) and 97(I) of the Act.

Full 5-page document here.

A response to that defiant stand

Excerpt from NSWEC, 23 March 2016: Statement by Chairperson of the NSW Electoral Commission

The NSW Electoral Commission has decided that the Liberal Party of Australia (NSW Division) is not eligible for payment of its current claims for about $4.4 million in public funding because it failed to disclose the identities of all major political donors in its 2011 declaration.

Effective 23 March 2016, the Liberal Party will not receive further funding from the Election Campaigns Fund or the Administration Fund, administered by the Commission. The Party will remain ineligible until it discloses all reportable political donations in relation 10 its 201I declaration. These donations include some made by donors identified during the ICAC's public hearings in Operation Spicer.

The Liberal Party did not submit a "requisite declaration", which is a breach of the Election Funding,  Expenditure and  Disclosures Act 1981.

The Commission considered the public evidence generated by ICAC's Operation Spicer and other information held by the Commission and information and submissions put forward on behalf of the Liberal Party and The Free Enterprise Foundation. Since I I February 2016, the Liberal Party was given opportunities to rectify its declaration but  it declined to do so.

Copy of full document and related correspondence here.

Threats of legal action

Excerpt from SWAAB Attorneys letter to NSWEC, 23 March 2016:

As is clear from the Response attached to our letter of t 8 March 2016, our client denies that it has in any way given an incorrect disclosure for the year ended 30 June 2011. Nevertheless, at paragraph 12 of our response, we suggested that at the very least the NSWEC should release the Funding, but withhold $693,000 pending resolution of the matters in issue concerning the donations from the FEF (Balance Funding).

Provision of the Funding, or the Balance Funding, is of critical importance to our client. We are instructed that our client requires the Funding or the Balance Funding in order to continue its operations. If the Balance Funding is not received by 30 April20,6 our client will be forced to take emergency measures, the most likely of which will be forced retrenchment of staff. Even then, retrenchment of staff will only allow it to carry on its operations for a relatively short period of time thereafter.

You are also aware that there will be a federal election this year, perhaps as early as 2 July 2006, placing further pressure on our client's financial position, and our client requires provision of the Funding or the Balance Funding as a matter of urgency.

We require that the NSWEC pay to our client the Balance Funding by 30 March 2016.

If this request is not met, our client has no choice but to apply to the Supreme Court of New South Wales for urgent relief that, inter alia, the monies be paid to our client without further delay.

This is an open letter and will be tendered on any application made to the Supreme Court, including on the question of costs.

Liberal Senator for NSW and Cabinet Secretary (Turnbull Government) Arthur Sinodinos¹, 24 March 2016: Statement - NSW Electoral Commission

It is a matter for the NSW State Division to respond to the matters raised by the NSW Electoral Commission in its statement.

I had no role in the NSW Division’s decision to decline to update information disclosed in that declaration, as was requested by the Commission.

For my part, my lawyers have written to the Commission to draw its attention to errors of fact in its statement in relation to me. I was not given the opportunity by the Commission to comment on its statement before its publication and I was not aware of the publication until shortly prior to its release.

The Statement already has been extensively cited by the media. In a number of instances, there has been erroneous commentary to the effect that I “concealed” illegal donations, and that my actions were somehow corrupt or illegal. That media commentary is a direct consequence of the NSW Electoral Commission’s flawed publication.

In light of these matters, my lawyers on my behalf have invited the Commission to immediately retract all references to me in the publication. The Commission has been invited to publish a correction to that effect on its website.

Those weasel words in the media

The Australian, 24 March 2016:

The party's NSW division says it had been waiting for the state's corruption watchdog to hand down its findings from hearings in 2014, but will comply with the commission's ruling.

"I have written to the commission this afternoon seeking their assistance in resolving any areas of uncertainty about the legal status of donors in the 2010/2011 period," a spokeswoman said in a statement on Thursday evening.

"The NSW division has already publicly acknowledged and apologised to the people of NSW for these matters."

1. Senator Sinodinos was the Liberal Party (NSW Division) finance director and treasurer during the period in question. His name was mentioned twice in the Summary Of Facts Relevant To The Decision Of The New South Wales Electoral Commission: Liberal Party Of Australia (NSW Division) Claim For Public Funding. In both instances the mention was confined to words to the effect that evidence was given at ICAC hearings of the involvement of other senior Liberal Party officials constituting the Party's Finance Committee in arrangements touching the Free Enterprise Foundation, including Arthur Sinodinos as then Finance Director/Treasurer.

BACKGROUND

North Coast Voices,19 September 2014:

So what is this Free Enterprise Foundation of which they speak?

According to evidence before the NSW Independent Commission Against Corruption (ICAC) and other sources, the Free Enterprise Foundation:

* Is listed by the Australian Electoral Commission as an associated entity of the federal divisions of the Liberal Party of Australia and the National Party of Australia.

* Was created by deed on 20 August 1981 as a $10 trust at the direction of Sir Robert Crichton-Brown, federal treasurer of the Liberal Party of Australia from 1973 to 1985.

* Has set out its objectives in the trust deed are as follows:

 * Original trustees were Anthony Joseph Bandle and Charles James Fox who comprised the trust’s original Council. The current trustees are Anthony Bandle and Stephen Francis McAneney.  Both of whom were also trustees of the Greenfields Foundation, an associated entity which was allegedly set up to hide from public view a 1992 $4.7 million political donation to the Liberal Party.

* Accountants are Bandle McAneney & Company.

*  Name was registered with the Australian Security & Investments Commission as a business name in 2012.

* Receives political donations which the trust directs onto the Liberal Party of Australia, the Liberal National Party of Queensland, other associated entities of the Liberal Party and, infrequently to registered charities.

In practice the Free Enterprise Foundation does not appear to fulfil all the prescribed purposes set out in the trust document, does not seem to operate independently of the Liberal Party of Australia and, has accepted political donations from prohibited donors in New South Wales which it redirected to the Liberal Party of Australia (NSW Division).

Rather disingenuously former NSW Deputy State Director of the Liberal Party and former Metgasco Limited executive, Richard Shields, stated during a 12 September 2014 ICAC Operation Spicer hearing in relation to the Free Enterprise Foundation, which had donated approximately $700,000 to the Liberal Party to fund its 2011 NSW election campaign:

I knew that it existed, I, I didn’t have a lot, a great understanding of it. I had heard, you know, I, I was of the opinion that it was an organisation that had political or philosophical 

allegiances with the conservative side of politics.