Mike Baird reeling as ICAC hits again MARK COULTAN AND BRAD NORINGTON THE AUSTRALIAN MAY 03, 2014 NSW Premier Mike Baird’s government is in crisis after Police Minister Michael Gallacher became the latest casualty of a corruption scandal over illegal donations paid by building developers to the Liberal Party. Mr Gallacher was forced to resign yesterday after allegations made in the NSW Independent Commission Against Corruption that he was involved in a sham business scheme to disguise donations from developers, banned since 2009. A former police officer, Mr Gallacher is the fifth and most senior member of the NSW government to be thrust into the middle of the illegal donations scandal. The government was already reeling after the resignation last month of Barry O’Farrell as premier, forced out when his emphatic denials to ICAC that he ever received a $3000 gift of wine were proved false. Another Liberal minister, NSW central coast MP Chris Hartcher, resigned last year when his links to a sham company called Eightbyfive first came to light and prompted the current ICAC investigation. More NSW ministers are set to be called to give evidence over their possible involvement in the scheme, and ICAC’s counsel assisting, Geoffrey Watson SC, signalled yesterday that hearings might be suspended to allow further investigations to be carried out. Mr Watson said yesterday that Mr Gallacher was involved in a plot to hide donations paid by developers to the Eightbyfive company while questioning Darren Williams, the development manager at Nathan Tinkler’s company Buildev. “You had a close, long-standing connection with the then shadow minister Michael Gallacher,’’ Mr Watson told Mr Williams. “It was through him that the two of you hatched a corrupt scheme to make donations to the Liberal Party.” Mr Williams denied this, prompting Mr Watson to remark: “By the end of this, you are going to regret giving that answer.” He presented a series of emails, including one from June 2010, in which Mr Williams asked another Buildev manager, David Sharpe: “Which entity will I give mike gallagher? (sic)” Mr Sharpe replied: “Ask Nathan as I think it’s best to come through Patnack (sic) get right away from property mining infrastructure.” Mr Watson also showed records of meetings and phone calls between Mr Williams, Mr Hartcher and Mr Gallacher. The commission heard that Mr Hartcher had approached Mr Williams to introduce Tim Koelma, a staffer from his office who operated Eightbyfive, so Mr Koelma could offer marketing and public relations services. ICAC has heard Eightbyfive was used to collect money from developers banned from giving political donations. Mr Baird said yesterday he had accepted Mr Gallacher’s resignation following claims made in ICAC that were new to him. “I make no judgment regarding those allegations,’’ the Premier said. “However, it could take considerable time for them to be resolved, and this would constitute an unacceptable distraction for my government. We need to be completely focused on delivering results for the community.” Mr Baird said he was determined to do whatever was required. “I will take every action possible to clean up politics in NSW. Every action required to restore confident in NSW will be done under my leadership.” Mr Gallacher said he had expected to be called as an ICAC witness but the allegations against him were made for the first time yesterday. “I don’t even know what the allegation is,” he said. “All I’ve heard is that I have a corrupt longstanding relationship. “I’m yet to see what the allegation is: but I don’t intend to have the Premier and the parliamentary team diverted by this. “I have spent my entire professional life fighting corruption and crime. I’m disappointed this allegation has been made, and the manner in which it came to be made, but it will be dealt with through the processing of the ICAC.” Attorney-General Brad Hazzard has been temporarily appointed as Police Minister, a critical role as law and order is expected to feature prominently in the lead-up to next year’s state election. Mr Gallacher’s exit from all government posts means Mr Baird also has to find a new leader in the upper house, where the government faces a hostile crossbench. Buildev executive Mr Williamson told ICAC yesterday he had referred Mr Koelma to Patinack Farms, a Tinkler horse-breeding business. He admitted Mr Koelma had contacted him when Patinack Farms had not paid bills, even though he did not work for that company. He said he just passed the invoice to Patinack. In other surprise allegations yesterday, Mr Watson foreshadowed further trouble ahead for Liberal fundraiser Paul Nicolau, claiming he had received secret commissions for donations he organised for the party. And Karen McNamara, the Liberal member for the federal seat of Dobell on the NSW central coast, admitted that she had been lied to by state Liberal MPs Darren Webber and Chris Spence over their claim to her that $300,000 had been raised jointly from the local electorates of Wyong and Terrigal. Police minister Michael Gallacher was forced to resign yesterday. Source: News Limited
Posted on: Fri, 02 May 2014 21:30:14 +0000
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