Council grant scandal increases pressure on Berejiklian

October 22, 2020
Issue 
NSW Premier Gladys Berejeklian. Photo: Wikimedia Commons

After being grilled as a witness by the New South Wales Independent Commission Against Corruption (ICAC), questions are now being asked about Premier Gladys Berejiklian鈥檚 involvement in, or knowledge of, other shonky decisions, specifically a $250 million council grants fund.

ICAC is investigating the activities of disgraced former Liberal MP Daryl Maguire, including a 鈥渃ash for visas鈥 scandal and dodgy land deals at the planned Western Sydney airport at Badgerys Creek.

NSW is polarised over Berejikilan鈥檚 testimony 鈥 in which she does not seem to recall much 鈥 with conservatives (largely) arguing that the premier is being targeted for having an undeclared relationship.

The issue, of course, is whether she protected Macguire, or turned a blind eye, enabling him to pursue his questionable business dealings.

Did Berejiklian commit breaches of the Crimes Act and the Independent Commission Against Corruption Act, which聽impose a duty for witnesses to report聽any matter they suspect 鈥渙n reasonable grounds鈥 may corrupt conduct.

The pressure mounted when Leader of the Government in the Legislative Council Don Harwin was suspended on October 20 after failing to produce the paperwork for more than $250 million doled out in council grants, just before the 2019 election, and after many councils had been forcibly council amalgamated.

Greens MLC David Shoebridge said: 鈥淲e began investigating these grants in budget estimates, because there was zero public information on how the scheme was administered.

A majority in the Legislative Council 鈥渇orced the release of documents which exposed a grant scheme that was hopelessly politicised with the Premier and Deputy Premier directly involved in handing grants to Coalition seats鈥.

He said schemes like this 鈥渟hovel out public money and are supposed to go where they can do most good鈥. They have instead been used 鈥渢o buy votes to secure seats for Coalition candidates鈥.

Berejiklian herself approved more than $100 million of these grants from the Stronger Communities Fund. But the only records of the approvals are emails from policy advisers: there appears to be no signed approvals.聽

The October 22 Sydney Morning Herald reported that the premier鈥檚 office had approved and was preparing to announce a raft of grants before new guidelines were announced changing how the money could be distributed.

Labor MLC John Graham said the grants, worth 鈥渢wo-and-a-half times the federal sports rorts鈥 scandal, were given almost exclusively to .

The government has since confirmed that for 249 grants, rubber-stamped between June 2018 and March 2019, no signed approvals exist.

Greens MLC David Shoebridge said the government had effectively used 鈥減ublic money to bankroll their election campaign鈥.

鈥淲orking with a majority in the Upper House we forced the release of documents which exposed a grant scheme that was hopelessly politicised, with the premier and deputy premier directly involved in handing grants to Coalition seats.

鈥淪chemes like this shovel out public money, and are supposed to go where they can do most good, but they have been used to buy votes to secure seats for Coalition candidates.鈥

ICAC Chief Commissioner Peter Hall told the Legislative Council parliamentary inquiry, , that the administrative methods used by the government 鈥渞aise very serious questions鈥. Responding to a question from Shoebridge about whether such behaviour raised integrity concerns, Hall said: 鈥淚f there鈥檚 a lack of a required development of a set of guidelines [that] obviously leaves the door ajar for corruption. That is, it鈥檚 a corruption-risk scenario.鈥

Shoebridge has been successful in forcing Berejiklian and treasurer Dominic Perrottet to produce documents from their previously secret email accounts relating to the grants program, which was originally set up in 2016 ostensibly to assist amalgamated councils.

However, millions ended up with councils that avoided forced amalgamations, such as Hornsby Shire. Its mayor is Philip Ruddock, a former federal Liberal MP.

In August, the council had 鈥渘o interest in joining the debate over whether the government followed all of the regulations in providing the money鈥, that Hornsby 鈥渘eeded and deserved鈥 the $90 million and that he hoped 鈥渇urther compensation鈥 would be forthcoming.

鈥淵ou got to ask why they were so committed to not leaving a paper trail for this scheme beyond a few emails,鈥 .

The inquiry also wants answers as to whether聽Berejiklian declared a conflict of interest when in 2018, as part of a committee, she signed off on $30 million for a Wagga Wagga music conservatorium after being lobbied by Maguire, who was once its MP.

The inquiry was told on October聽16 that the Regional Cultural Fund awarded $10 million and $20 million to the Riverina Conservatorium of Music for the construction of a new recital hall in 2017 and 2018.

Meanwhile, found on October 20 that the government鈥檚 funding arrangements for ICAC threatened its independence because the premier can 鈥渞estrict access鈥 to the funds.

Last year the government ordered a review into the 鈥渆ffectiveness of the financial arrangements鈥 for ICAC, the NSW Electoral Commission, the Ombudsman and the Law Enforcement Conduct Commission.

found that funding for these agencies was not 鈥渢ransparent鈥 and that there are 鈥渘o mechanisms for the agencies to question or challenge decisions made鈥. She said 鈥淭his risk has the potential to limit the ability of the integrity agencies to fulfil their legislative mandate鈥.

State Opposition Leader Jodi McKay said there needs to be an independent body to oversee funding arrangements for ICAC.

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