What we learned: Icac hands down Berejiklian findings
That’s where we’ll leave the blog for today – thanks for joining our live coverage on the findings of Operation Keppel.
Here is a wrap of what we learned today:
Icac made findings of serious corrupt conduct against the former premier Gladys Berejiklian and ex-Wagga Wagga MP Daryl Maguire.
Icac will seek the advice of prosecutors about whether a criminal case should be pursued against Daryl Maguire. But it said it does not want the DPP to consider prosecuting Gladys Berejiklian given the conduct was not serious enough to warrant prosecution.
The report found that Gladys Berejiklian engaged in corrupt conduct by breaching public trust in 2016 and 2017 over grants to the Australian Clay Target Association, based in Daryl Maguire’s electorate, without disclosing her personal relationship to Maguire.
It also found Gladys Berejiklian failed to notify Icac of her suspicion that Daryl Maguire had “engaged in activities which concerned, or might have concerned, corrupt conduct”.
Gladys Berejiklian said in her first public statement following the findings that the report is being examined by her legal team and nothing in the report demonstrates she has not worked her hardest in the public interest of the people of NSW.
Daryl Maguire was found to have engaged in corrupt conduct between 2012 and 2018 when he “improperly used his office, and the resources to which he had access as a member of Parliament (MP), to benefit G8wayInternational Pty Ltd.
Icac also found Daryl Maguire misused his role as an MP to advance his own financial interests and the interests of his associates.
Icac made 18 recommendations in the report, including training MPs and their staff and improving the integrity of grant schemes.
Premier Chris Minns said he is open to considering reforms of the watchdog. He also said he does not believe there should be an “automatic” resignation of people who are the subjects of Icac investigations.
Opposition leader Mark Speakman described the delays in delivering the Icac findings as “unacceptable”. He said initial observations of the report showed the behaviour of former MP Daryl Maguire was “reprehensible”. He also agreed with the report’s findings that Berejiklian should have disclosed her personal relationship with Maguire.
Optus, which created a new executive role for Berejiklian in February last year, said there are no immediate changes to Berejiklian’s executive position at Optus.
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Former auditor general, Tony Harris, has said Icac owes the public an explanation as to why it took so long to deliver its findings given the delay points to potential flaws in their proceedings or processes.
Speaking on ABC, he said:
The Icac report points out that as part of their processes, they disclose to people what they’re going to say about them, and they have to get responses from those people.
And we see in the report that they didn’t get a response. The last response came in October last year, so they couldn’t have reported before October last year. Nevertheless, the several months that it has taken since they received the last submission indicates some flaw in their proceedings and some flaw their processes.
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My colleague Anne Davies has written some analysis on why Berejiklian, as a seasoned politician, should have been familiar with her obligations as a public figure.
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Optus responds to Icac report
There are no immediate changes to Gladys Berejiklian’s executive position at Optus.
The telco, owned by Singapore Telecom, noted in a statement that the Icac report referred to Berejiklian’s time in parliament, and that it had no further comment.
Berejiklian joined Optus in February 2022 in a newly created executive role focused on increasing the telco’s usage among businesses. The executive hire came less than six months after the former NSW premier resigned from the leadership, and left state parliament.
Optus acknowledges the Icac report published in relation to Gladys Berejiklian’s time serving as a member of the NSW parliament,” Optus said on Thursday.
The telecommunications company has previously defended its high-profile recruit, arguing that the events scrutinised by Icac had nothing to do with Optus.
Mark Speakman: ‘when Gladys Berejilkian resigned, she put the public interest first’
Asked whether Speakman agrees with premier Chris Minns’ comments this morning that targets of Icac investigations should not automatically resign, he said it depends on the circumstances and what is alleged.
He said the most important criteria is the public interest and this should be the “overwhelming determiner”.
When Gladys Berejiklian resigned, she put the public interest first. At the heart of another Covid outbreak, she realised it was impossible to have public confidence in any the administration of government while the serious allegations remained to be determined.
It was appropriate to resign when she did.
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Mark Speakman: ‘complete shock’ that Gladys had a relationship with Daryl Maguire
Circling back to the press conference held earlier by the state opposition leader, Mark Speakman, and the shadow attorney general, Alistair Henskens.
Speakman has said he believes there are findings in the report that may be open to legal challenge, however he agrees with the finding that Berejiklian should have disclosed her personal relationship with Maguire.
It came as a complete shock, I think to every MP and the government, that she had any sort of connection with Daryl Maguire. That came as a complete shock to all of us. I think we [were] all gobsmacked when that emerge[d]. If those findings … stand up, in hindsight, I would have expected as a minister for that to be disclosed. There are findings beyond that that may be up to legal challenge.
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Berejiklian breaks silence after Icac hands down findings
Gladys Berejiklian has broken her silence on the Icac’s findings, releasing her first public statement:
Serving the people of NSW was an honour and privilege. At all times I have worked my hardest in the public interest. Nothing in this report demonstrates otherwise.
Thank you to members of the public for their incredible support. This will sustain me always. The report is currently being examined by my legal team.
in 2021. Photograph: Mark Kolbe/Getty Images
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Shadow attorney general joins calls for explanation on Icac findings delay
The shadow attorney general, Alister Henskens, said Icac findings on allegations of corruption should be more “timely”:
We are also very happy that there seems to be bipartisanship with regard to dealing with what has been a delay of this report. That delay is not in the public interest. It is not in the interest of those who are the subject of investigation, nor is that in the interest of the general public because it is unsatisfactory that so many years after someone has left public life, that there will be a finding about their conduct in public life. I think we would all be served better by having a timely findings with regard to integrity matters.
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NSW opposition says behaviour of Daryl Maguire ‘disgraceful and reprehensible’
Speakman said the opposition will be looking at Icac’s report “as closely and as quickly as possible” but said initial observations showed the behaviour of former MP Daryl Maguire was “reprehensible”.
When you’re elected, you elected to serve the people for New South Wales, not yourself. That is something that Mr Maguire has monstrously failed to do.
It is disgraceful and reprehensible behavior and the opposition condemns it.
In the case of the findings against Berejiklian, he said the opposition would look at those findings closely.
She was an outstanding MP for New South Wales. She was an incredibly popular premier because she wanted what was best for the people of New South Wales.
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NSW opposition leader Mark Speakman: ‘This can’t happen again’
The NSW opposition leader, Mark Speakman, is holding a press conference now on Icac’s findings:
There is a broad political consensus that this can’t happen again.
We offered yesterday to work with the government to look at legislative reforms to ensure that timeliness and I welcome the comments by the premier last night and this morning that the government will move to do that.
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Proving Berejiklian's mental state a 'considerable obstacle' to prosecution: Icac
As we’ve reported earlier, Icac did not recommend asking the DPP to consider prosecuting Berejiklian. It described the barriers to doing so as “formidable”.
One of the issues was that Berejiklian gave her evidence under objection. This means that it is not possible to use her evidence against her in any criminal proceedings for an offence of misconduct in public office.
Counsel assisting the Icac submitted that, despite this, there was a “body of evidence independent of Ms Berejiklian’s own evidence that would likely be available in any criminal proceedings instituted against Ms Berejiklian for the offence of misconduct in public office”.
Despite this, Icac found that proof of Berejiklian’s mental state, including on the question of whether misconduct was “wilful”, would be left to inference from the circumstances. This, Icac said, would pose a “considerable obstacle to any successful prosecution of Ms Berejiklian”.
NSW Greens: Icac findings ‘vindication for its work’
The New South Wales Greens’ anti-corruption spokesperson, Kobi Shetty, has said Icac’s findings are a “vindication for its work” and called for more funding for the corruption watchdog.
In a press conference, Shetty said:
I really would hate to think what they’re not looking into and what they could be finding if they were funded better.
Shetty also disagreed with premier Chris Minns’ comments earlier today that targets of Icac investigations should not automatically resign:
It’s not going to be a one size fits all kind of a process... In this particular instance, with the evidence that came to light during those hearings, it was clear that there was very good reason that people were calling for the premier to resign.
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Tony Harris calls for Icac to explain delay in findings
The former NSW auditor general Tony Harris said that Icac should explain the delays in delivering the findings. Harris told the ABC:
One would hope that this is an aberration, that it took so long that disadvantaged both Gladys Berejiklian and Daryl Maguire and the public. The report points out that as part of their processes, they disclose to people what they will say about them, and they have to get responses from those people, and we see in the report that they did not get a response … until October last year. They could not have reported before October last year.
Nevertheless, the several months it has taken since they received the last submission, indicates some flaw in their proceedings and some flaw in their processes. I think the Icac owes the public a bit of an explanation as to why it took so long. It certainly did not do the Icac any benefit by taking this time.
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Maguire: ‘I am the boss, even when you’re the Premier’
Daryl Maguire boasted to Gladys Berejiklian earlier in 2018, in February, that he was “the boss, even when you’re the premier”.
The pair were discussing the nature of their relationships, both work and personal.
Berejiklian said:
Because you know what I tell you why because normally you’re the boss and it’s hard when we have to switch it around that’s the truth.
Maguire:
Yeh but I am the boss, even when you’re the Premier.
Berejiklian:
I know. So therefore it’s hard when I had to switch it around.
Maguire:
Glad even when you are the Premier I am the boss alright.
Berejiklian:
Yes I know.
The former premier told Icac during the hearings that she was trying to make Maguire feel like he was an equal in their personal relationship.
It’s got nothing to do with work. It’s actually making him feel that because I was the boss during the day, that I wouldn’t necessarily be exercising that relationship in the private relationship.
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'The little green man, it leaves no trace': Maguire
In mid-2018, text messages show that Daryl Maguire was encouraging Gladys Berejiklian to get a private phone and use an encrypted communications app, which could not be traced.
Icac noted that the messages from Maguire came on “the heels of him having been summonsed to appear before the commission and having shared details of at least a level of association with people whom Ms Berejiklian regarded as ‘dodgy’.”
Maguire told her to download WeChat.
Berejiklian responded:
Ok I’ll try! What about what’s app? [sic] That’s easy too. I’ll do it tomorrow as don’t know my password for apps
Maguire said:
You need to get a private phone
Berejiklian:
Ok. Is everything ok
Maguire:
Yep got the bugbears on the rum [sic]
Berejiklian:
What does that mean
Maguire:
Means I got more info and data than them. They can read texts but not the little green man, it leaves no trace
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Clay target site jokingly labelled ‘Maguire International Shooting Centre of Excellence’: Icac report
The advice to Mike Baird jokingly referred to the Australia Clay Target Association clubhouse, which Berejiklian had supported funding, as the “Maguire International Shooting Centre of Excellence”.
This minute asks for $5.5m for the Australian Clay Target Association to develop a large clubhouse and conference facility in Wagga. The estimated total cost of the upgrade is $6.7m. The shooter dudes have graciously put up $1.2m … It’s to be known as the Maguire International Shooting Centre of Excellence.
Berejiklian’s failure to disclose her relationship with Maguire during the expenditure review process, despite supporting the grant proposal, was slammed by Icac as deliberate and conflicted.
The evidence is compelling that Ms Berejiklian deliberately failed to disclose her personal relationship with Mr Maguire in circumstances where there was a real possibility of conflict between her public duty and her private interest in relation to her exercise of her official functions associated with proposals for government action that she knew were advanced by Mr Maguire, such as the ACTA proposal.
The commission rejects Ms Berejiklian’s submission that she did not know, nor was she reckless as to, her obligation to disclose her relationship with Mr Maguire under the conflict regime. In the commission’s view, Ms Berejiklian’s failure to disclose her relationship with Mr Maguire in relation to the decisions she made concerning the ACTA proposal cannot be put down to an honest error of judgment.
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Mike Baird’s staff were shocked at clay target grant proposal, Icac finds
We’ve talked a lot about the grant awarded to the Australian Clay Target Association in Maguire’s electorate. Maguire was a chief proponent of it and Berejiklian supported it through the expenditure review committee process. Icac found she was conflicted and should have disclosed her personal relationship to Maguire.
The Icac report confirms staffers in then NSW premier Mike Baird’s office were shocked at the proposal. In a memorandum on the proposal prepared for Baird in December 2016, one adviser warned the grant was “against all of the principles of sound economic management”.
The memorandum began:
As Joel Goodsen famously said, sometimes you gotta say WTF.
The adviser then said:
They should go away, test the assumptions, verify the business case and then come back when it’s solid. (this was suggested and it was taken off the agenda, but Daryl fired up and Gladys put it back on).
Recommendation: oppose. Gladys and Ayres want it. No doubt they’ve done a sweetheart deal with Daryl, but this goes against all of the principles of sound economic management.
At the very least, let’s target our marginal seats. Not one of our safest.
The Office of Sport had expressed similar concerns with the submission for funding the association, made through the expenditure review committee process, saying it did not “stack up”.
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Berejiklian aware of Maguire's property dealings from early stage, says Icac report
Icac found that Gladys Berejiklian was aware of Daryl Maguire’s property dealings from an early stage. It referred to the following text exchange between the two on 11 February 2014.
Daryl Maguire to Berejiklian:
Hawkiss [sic] good news One of my contacts sold a motel for 5.8 million I had put her in contact so I should make 5k
Berejiklian:
Congrats!!! Great News!! Woo hoo
Maguire:
yes 12.00 today we should have it closed
Berejiklian:
That is really good. Does that mean your commission is 0.1 per cent?
Maguire:
sharing with Chinese business partner so commission is 20k usually its 50% of that but I will only ask for 25% cause uts [sic] such a small sale only 5.8m so I get5k
Berejiklian:
Great stuff!
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Shoebridge praises NSW Icac in comparison to federal Nacc
Federal Greens senator David Shoebridge has praised the existence of public hearings in the NSW Icac, saying in this matter it disclosed allegations prior to the state election.
Public hearings in the Berejiklian/Maguire matter meant the community knew about the serious accusations at the time of the last election - this is unfortunately not a feature of the current federal NACC and it's a significant shortcoming.
— David Shoebridge (@DavidShoebridge) June 29, 2023
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My colleagues have prepared a quick explainer to guide you through what Icac has found, and what it means for Gladys Berejiklian and Daryl Maguire.
Liberal party praises Berejiklian, slams 'unacceptable' delays in Icac report
Opposition leader Mark Speakman has praised Gladys Berejiklian and described the delays in delivering the Icac findings as “unacceptable”.
In a statement with shadow attorney general Alister Henskens, he said:
Gladys Berejiklian led New South Wales with strength and determination through the most challenging conditions since the second world war, including a one in a hundred years pandemic and record drought, bushfires, and floods.
The opposition will consider the detailed content and recommendations in this report as expeditiously as possible, but we make some preliminary observations. The Independent Commission Against Corruption (ICAC) does not suggest that there has been any arguable breach of the criminal law by the actions it investigated by Ms Berejiklian, nor was it suggested in the inquiry that Ms Berejiklian received any personal financial benefit. The delays in providing a report have been unacceptable and should not be allowed to occur again.
Statement from NSW Liberal Leader .@MarkSpeakman and Shadow Attorney General .@AlisterHenskens on ICAC’s findings into Operation Keppel @SkyNewsAust pic.twitter.com/QeA5zfQOH8
— Julia Bradley (@_juliabradley) June 29, 2023
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Berejiklian argued ministerial standards did not apply when she was premier: report
The Icac report reveals that Gladys Berejiklian argued the ministerial standards governing her government ministers did “not apply to her when she was premier”.
As well as investigating the possibility of serious corrupt conduct, Icac considered whether Berejiklian breached ministerial standards in her handling of the grant to the Australian Clay Target Association and the proposal for a new recital hall for the Riverina Conservatorium of Music.
Berejiklian, according to Icac, said:
In summary, Ms Berejiklian … contended the ministerial code did not apply to her when she was premier.
Icac rejected the submission, and others made by Berejiklian, and found she breached the ministerial code, which prohibits ministers from acting in their personal interests or the personal interests of others.
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Berejiklian at times treated witness box as 'more like a husting': Icac
In several parts of the report, Icac was scathing of Berejiklian’s evidence during public hearings.
At one point, Berejiklian had rubbished a submission from counsel assisting that her relationship with Maguire was capable of influencing her for the “the simple, completely legitimate and entirely human reason that people tend to wish to please and to seek to avoid disappointing the expectations or desires of people who they love”.
Berejiklian described that submission as “puerile”.
Icac was forceful in its rejection of Berejiklian’s description.
The Commission considers Ms Berejiklian’s description as both supercilious and unworldly.
It also described her as an “unsatisfactory witness in many respects”.
Some of that may be explicable on the basis of the period of time over which the evidence ranged, and a tendency to view the witness box as more like a husting than a place from which to respond directly to the question.
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Berejiklian's conduct on conservatorium proposal not serious enough to warrant prosecution: Icac
Icac came to a similar position in relation to Berejiklian’s handling of the proposal to build a new recital hall for the Riverina Conservatorium of Music. It found her actions – supporting the proposal without disclosing her relationship with Maguire, its chief proponent – was serious corrupt conduct.
But it said the conduct was not serious enough to warrant prosecution.
The Commission has considered whether Ms Berejiklian’s conduct in relation to the RCM could constitute or involve a substantial breach of an applicable code of conduct for the purposes of s 9(1)(d) of the Icac Act, rather than whether it could constitute or involve a criminal offence for the purposes of s 9(1)(a).
Ultimately, the Commission is of the view that Ms Berejiklian’s conduct, while it constitutes or involves a substantial breach of the ministerial code, is not so serious as to merit criminal punishment (an element of the offence of misconduct in public office) and therefore does not reach the very high bar required to make out this element of the offence of misconduct in public office.
For this reason, the Commission is not of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Ms Berejiklian.
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Icac determined that obstacles to prosecution of Berejiklian were 'formidable'
As we mentioned earlier, Icac will not ask prosecutors to consider charging Berejiklian, despite finding her to have engaged in serious corrupt conduct.
The voluminous report reveals Icac believed that, in relation to her handling of the Australia Clay Target Association and Riverina Conservatorium of Music funding proposals, there were significant obstacles to any prosecution of the former premier.
On balance, Counsel Assisting submitted that the obstacles to a prosecution of Ms Berejiklian for misconduct in public office in relation to partial conduct or breach of public trust in relation to the ACTA and/or RCM proposals were so formidable as to make it reasonably clear that any advice from the DPP with respect to the matter would be to the effect that no prosecution may be commenced.
It said it considered whether her conduct in relation to the Clay Target Association grant, which she supported without disclosing her relationship to its proponent Daryl Maguire, could have constituted a breach of criminal law.
Ultimately, the Commission is of the view that Ms Berejiklian’s conduct, while it constitutes or involves a substantial breach of the ministerial code, is not so serious that it could be demonstrated to merit criminal punishment (the fifth element of the offence of misconduct in public office) and therefore does not reach the very high bar required to make out the offence of misconduct in public office.
In those circumstances, it is reasonably clear to the Commission that any advice from the DPP with respect to the matter would be that no prosecution should be commenced. For these reasons, the Commission is not of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Ms Berejiklian for the offence of misconduct in public office in relation to the ACTA proposal.
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Targets of Icac investigations should not automatically resign, NSW premier says
Asked whether the targets of Icac investigations should step down from public life immediately, Minns says he does not believe there should be an “automatic” resignation. He makes the point that Labor did not call for Berejiklian to step down when it was revealed that she was the target of an Icac investigation.
Yeah, I think that’s a really important question. I think that it’s important that there’s not an automatic resignation or a suspension from public life while the inquiry is taking place. Now, there may be circumstances where it’s absolutely appropriate because the evidence is overwhelming, but it shouldn’t happen in an automatic way because people have got a right to have an investigation and the final findings submitted to the public and the parliament before their political life has stopped or ended.
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Icac not ‘immune from reform’, Minns says
Minns says he is supportive of Icac but that if there are sensible reforms to the watchdog, he’s open to considering them.
I have always been very acutely aware that there’s been bad apples inside the Labor party and I have been a supporter of the Icac precisely because it investigates us as much as our political opponents. Now, if there are things that we need to do in New South Wales to ensure that we have got public confidence in the Icac, we’ll do them. However, I think Icac being in existence in this state stops corruption before it begins because many public officials who are considering a life of corruption or illegal or, I guess, unethical behaviour are concerned about the cop on the beat. That doesn’t mean that an organisation like the Icac or any organisation in the state is immune from reform and if there’s sensible suggestions that have been put forward, we’ll look at them.
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Delays in handing down Icac findings holds people’s lives up for years, Minns says
Minns says delays in handing down Icac findings effectively hold people’s lives up for years and years. He said:
I do want to make the point that it’s been two years since the public inquiry took place in Sydney, in New South Wales, for the findings to be released and if you’re an official or a public servant that is a subject of an inquiry, to hold your life effectively up for years and years is just too long. So if there are changes that we can make to the Icac Act in a bipartisan way or multi-party way, to strengthen accountability and community support for the independent agency, then we’ll do that.
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Premier Chris Minns says Icac findings 'have taken way too long'
The NSW premier, Chris Minns, is speaking in Sydney. He starts by saying the findings have taken too long and praises Gladys Berejiklian’s handling of the Covid pandemic.
He says, however, that it is important for anyone in public life to properly manage and disclose conflicts of interest.
Firstly, this report has taken way too long. I think that has been generally recognised across the political spectrum in New South Wales. The second point here is that nothing in this report takes away I don’t think from premier Berejiklian’s handling of the Covid emergency which I still regard as being excellent. It is important however for all politicians in New South Wales and anyone in public life or positions of leadership to understand we must manage conflicts of interest and declare them. That has been a fundamental principle since the foundation of the New South Wales parliament. It remains the case today and my government takes that warning incredibly seriously. The last point I would make is that we will of course work with parties across the political spectrum about ensuring that if there are appropriate and reasonable steps to strengthen the Icac in New South Wales consistent with its operations in the state as well as fairness to witnesses and potential subjects of that inquiry we are open to looking at that and we won’t close the door on it.
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Geoffrey Watson ‘bit surprised’ by ‘strong’ Icac findings
Geoffrey Watson, a former Icac counsel assisting, says he is surprised at the strength of the findings against Berejiklian. Speaking to the ABC, he says:
I’m a little bit surprised. They are very strong findings. The factual findings are really very strongly worded, highly adverse … I am more surprised so far in respect of Gladys Berejiklian. On the other hand, from my reading of the report, there are really very careful factual findings based upon more than just merely Ms Berejiklian’s evidence which justify the findings which have been made about into serious corrupt conduct and I can tell you I have been there when this has been debated and Icac does not do this unless the case is clear and the conduct is bad.
He says Icac only refers conduct for prosecutions “only sparingly and only in clear-cut cases”.
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Matt Kean lashes out at ‘ridiculous display’
Former treasurer Matt Kean, who this week lashed Icac for the delay, has again taken aim at the corruption watchdog following the delivery of the findings.
What a ridiculous display - ICAC turning a corruption report into a live TV event at Parliament House.
— Matt Kean MP (@Matt_KeanMP) June 28, 2023
This body deciding that ‘serious corrupt conduct’ has occurred, but then recommending no charges be laid because there is no evidence?
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Operation Keppel findings: what we know so far
The Operation Keppel report is huge. It spans two volumes, each with more than 300 pages.
Our reporters are still working their way through it. This is what we know about it so far.
Icac has made findings of serious corrupt conduct against former premier Gladys Berejikian and Daryl Maguire. It has recommended the DPP consider prosecuting Maguire, but not Berejiklian.
There were numerous findings against Berejiklian. Icac said the former premier should have disclosed to the corruption watchdog concerns about Maguire’s conduct.
It found she breached public trust while premier and treasurer through her support for a grant to the Australian Clay Target Association, which Maguire had lobbied for. Berejiklian did not disclose her relationship to Maguire at any point while supporting the grant.
Icac also found against Berejiklian for her handling of a proposal to build a recital hall for the Riverina Conservatorium of Music, which Maguire had also lobbied for. No disclosure of their relationship was made. Icac found she had partially exercised her official functions while “influenced by the existence of her close personal relationship with Mr Maguire, or by a desire on her part to maintain or advance that relationship”.
Icac has also found that Maguire used his role as an MP to advance his own financial interests, including by brokering land deals and involving himself in a visa scheme. It has recommended the DPP consider prosecuting him.
Daryl Maguire 'misused' role as MP to advance financial interests: Icac
Icac found that Daryl Maguire engaged in serious corrupt conduct. The watchdog said that between 2012 and 2018, he “improperly used his office, and the resources to which he had access as a member of Parliament (MP), to benefit G8wayInternational Pty Ltd, a company of which he was in substance a director, and whose profits he had an arrangement to share with others”. He also failed to disclose his interest and position in G8wayInternational, Icac found.
Icac also found Maguire misused his role as an MP to advance his own financial interests and the interests of his associates. That includes through brokering land sales and in connection with an immigration scheme that he promoted to his constituents and others connected with his electoral district.
Also, as an MP and chair of the NSW Parliament Asia Pacific Friendship Group, Mr Maguire misused those roles to advance his own financial interests and the commercial interests of his associates. Other misuse of his office as an MP included attempting to advance his own private financial interests and/or those of people associated with him in connection with the sale and/or development of land in NSW.
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Icac makes 18 recommendations, says earlier reporting should have occurred
Icac says that earlier reporting of the conduct would have brought the corrupt conduct to light far earlier. It wants to train MPs and their staff and improve the integrity of grant schemes.
The Commission notes that due to the failure to promptly report suspected corrupt conduct identified in Operation Keppel, the investigation was initiated through the work of ICAC officers. This made it necessary for the Commission to exercise all of its coercive powers as the different layers of the investigation were discovered. Earlier reporting of suspected corruption could have prevented aspects of the conduct and shortened what became a complex, multi-stage investigation.
The Commission has made 18 recommendations addressing the codes of conduct that govern the conduct of MPs, improving their training and that of their staff, and improving the integrity of grant schemes. The recommendations aim to address systemic weaknesses found in this investigation and reinforce NSW Parliament’s ethical culture. This includes devising a permanent ongoing professional development program for members, and that relevant codes and sources are reviewed and updated in relation to the use of public resources to clarify the limited circumstances in which it is acceptable to intermingle parliamentary duties with personal or private activities. The ultimate goal is to improve and enhance the reputation of the NSW Parliamentary system to the betterment of the people of NSW through the adoption of the recommendations. The Commission notes that initial to steps to commence a professional development program have been taken.
Icac asks prosecutors whether 'any prosecution should be commenced' against Maguire, not Berejiklian
Icac will now seek the advice of prosecutors about whether a criminal case should be pursued against Daryl Maguire.
But it says it does not want the DPP to consider prosecuting Berejiklian.
The Commission seeks the advice of the Director of Public Prosecutions (DPP) on whether any prosecution should be commenced. The DPP determines whether any criminal charges can be laid and conducts all prosecutions. The Commission is of the opinion that consideration should be given to obtaining the advice of the DPP about the prosecution of Mr Maguire, G8wayInternational director Phillip Elliott and Maggie Wang, an associate of Mr Maguire, for various offences. The Commission is not of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Ms Berejiklian for any offence.
Icac finds Berejiklian should have notified it of her suspicions about Maguire
Icac has also found Berejiklian engaged in “serious corrupt conduct” by failing to notify Icac of her suspicion that Maguire had “engaged in activities which concerned, or might have concerned, corrupt conduct”.
At the time Ms Berejiklian failed to report her suspicions to the Commission, she was the premier of the state. The report notes that Ms Berejiklian must have known that she was not entitled to refuse to exercise her official functions for her own private benefit, or for the benefit of Mr Maguire. To do so to conceal conduct she suspected concerned, or have might concerned, corrupt conduct on the part of Mr Maguire, another member of Parliament, both to protect herself and him from the Commission exercising its investigative powers was grave misconduct. It undermined the high standards of probity that are sought to be achieved by the ministerial code which, as premier, Ms Berejiklian substantially administered.
Berejiklian 'breached public trust': Icac
Icac has issued a statement explaining its decision.
It said it found that Berejiklian “engaged in serious corrupt conduct by breaching public trust in 2016 and 2017” over grants to the Australian Clay Target Association, based in Maguire’s electorate, without disclosing her personal relationship to Maguire.
It said she was “in a position of a conflict of interest between her public duty and her private interest, which could objectively have the potential to influence the performance of her public duty”.
The Commission also finds that in the same period, Ms Berejiklian partially exercised her official functions, in connection with funding promised to ACTA, influenced by the existence of her close personal relationship with Mr Maguire.
The Commission finds that Ms Berejiklian took a number of actions in relation to the ACTA proposal in circumstances where she knew that Mr Maguire was its principal proponent. These included, when she was treasurer, causing the proposal to be included on the agenda and supporting it at the ERC meeting on 14 December 2016 and when she was premier, causing steps to be taken by staff from her office to follow up on the progress of the ACTA proposal following the ERC ACTA decision. This included by communicating a request that the initial benefit–cost ratio (BCR) calculation of 0.88, by the Department of Premier and Cabinet Investment Appraisal Unit, be revisited. This ultimately led to it achieving a BCR satisfactory for Infrastructure NSW to approve its funding.
It also found that in 2018 Berejiklian had also partially exercised her official functions while “influenced by the existence of her close personal relationship with Mr Maguire, or by a desire on her part to maintain or advance that relationship”. That finding relates to a proposal to build a recital hall for the Riverina Conservatorium of Music, which Maguire had lobbied for.
The Commission finds that she breached public trust by exercising her official functions in relation to decisions concerning the RCM proposal which she knew was advanced by Mr Maguire.
Her conduct regarding the RCM proposals included participating in decisions at ERC meetings in April 2018 about the RCM proposal Stage 1 to transfer land for the conservatorium, and in relation to the funding granted to the RCM, without declaring a conflict of interest as required by the NSW Ministerial Code of Conduct (“the ministerial code”). Ms Berejiklian also determined to make a $20–million funding reservation for Stage 2 of the proposal, and approved the letter arranging for that funding reservation to be made, without disclosing her close personal relationship with Mr Maguire. This meant the reserved funds, which entailed a significant sum of public monies, could not be spent on other projects until they were released.
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Icac makes findings of corrupt conduct against Gladys Berejiklian and Daryl Maguire
Icac has made findings of serious corrupt conduct against the former premier Gladys Berejiklian and ex-Wagga Wagga MP Daryl Maguire.
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Icac website crashes
We are waiting on the publication of the Icac report. But it appears the Icac website has crashed under the load.
Stay with us. We will bring you the findings as soon as we possibly can.
Icac officials arrive in Speaker's dining room
Icac officials have arrived in the Speaker’s dining room at NSW Parliament House to hand over the report.
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In another wire tap, Daryl Maguire boasted of an impending land deal he had been involved in brokering, involving vast swathes of farmland held by the racing heiress Louise Waterhouse.
Maguire was heavily in debt at the time. He believed the potential sale would net him up to $1.5m.
Maguire said:
William tells me we’ve done our deal so hopefully that’s about half of all that gone now.
The then premier replied “that’s good”, pausing for a split second before adding:
I don’t need to know about that bit.
Maguire agreed:
No you don’t … you do not.
You can read more about the conversation here:
The wire taps that captured conversations between Daryl Maguire and Gladys Berejiklian were extraordinary. At various points, Maguire complained about the Icac’s powers, warned Berejiklian they could be listening in on their conversations, and said the watchdog was “marginalising the art of politics”.
Maguire said:
Nobody can have a conversation, nobody can make representations. What’s happening is that MPs and others are being muted by the fact that you have all this overseeing … in a way that paints you as fucking corrupt if you have a conversation.
In another call, Maguire complained to Berejiklian about the lack of money for a hospital in his electorate in the budget.
Berejiklian told Maguire:
I’ll fix it.
She later told him she had asked then treasurer Dominic Perrottet to put the money in the budget:
I said, ‘Just put the $140m in the budget.’ He goes, ‘No worries.’ He does what I ask him to.
You can relieve some of the most shocking moments from the wire taps here:
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Gladys Berejiklian has left her home ahead of the Icac findings. A media contingent was outside to greet her.
Berejiklian is currently employed by Optus.
She took a job at the telco in February last year, appointed as the company’s managing director, enterprise, business and institutional. Media reports in recent days suggest the company will back her, regardless of the findings of Icac.
Gladys Berejiklian will soon learn the findings of the Independent Commission Against Corruption's (ICAC) inquiry into whether she breached public trust or engaged in a conflict of interest while in a relationship with former Wagga Wagga MP Daryl Maguire | #nswpol @nswicac… pic.twitter.com/R0DMs0RD42
— 10 News First Sydney (@10NewsFirstSyd) June 28, 2023
It’s worth remembering that Gladys Berejiklian has consistently denied any wrongdoing.
When announcing her resignation, at the height of the pandemic, she said the following:
I state categorically I have always acted with the highest level of integrity.
History will demonstrate I have executed my duties again with the highest level of integrity for the benefit of the people of NSW for who I have had the privilege to serve.
She also took a swipe at Icac for the timing of its announcement, saying it had chosen to investigate her during the most challenging period in the state’s history.
My resignation as premier could not happen at a worse time, but the timing is completely outside of my control, as the Icac has chosen to take this action during the most challenging weeks of the most challenging times in the history of NSW.
That is the Icac’s prerogative. Resigning at this time is against every instinct in my being and something which I do not want to do.
During the hearings, she also denied any conflict of interest posed by her undisclosed relationship and the awarding of grants to Maguire’s electorate of Wagga Wagga.
In a series of interviews, she also sought to characterise her actions as a failing in her personal life.
The process this morning is relatively simple.
The Independent Commission Against Corruption (Icac) will hand their findings from Operation Keppel to the state parliament’s presiding officers at 9am.
The presiding officers are then expected to give approval for the report to be made public at some point later in the day. We will then be able to bring you the findings, as soon as they are published.
Icac commissioner Ruth McColl is able to make a range of findings against individuals who were the subject of investigations. She may find no corrupt conduct occurred, that serious corrupt conduct took place, or that there was a breach of the ministerial code.
Depending on the findings, it may also make disciplinary recommendations or advise the parliament it has referred matters to the director of public prosecutions to consider prosecution.
It may also make recommendations for changes in the systems and procedures that allowed any corrupt conduct to occur.
The Operation Keppel report is being handed down after vast delays. It’s been two years and nine months since public hearings first began and about 19 months since hearings concluded.
Gladys Berejiklian resigned in October 2021. The former premier has been waiting on the findings ever since.
The delays have been roundly criticised, drawing condemnation from both major parties and integrity experts.
Premier Chris Minns said delays to justice were against a “fundamental principle” of the legal system. Opposition leader Mark Speakman said the delays were “extraordinary”. The delays were such that the report was not available before the March election and the state parliament is now expected to legislate time limits for future Icac inquires.
Icac has sought to justify the delay by saying it was wading through extremely complex matters of law and fact and had dealt with two public inquiries with hearings spanning more than a month. They were still receiving submissions in October last year and had in total 2,800 pages of transcripts, more than 500 exhibits, and almost 1,000 pages of submissions. In a statement in January, Icac said:
The Commission and Ms [Ruth] McColl remain conscious of the obligation under section 74(7) of the ICAC Act to furnish investigation reports as soon as possible after the Commission has concluded its involvement in a matter.
Recap: what is Operation Keppel and why did it bring down a premier?
Before the report materialises, it’s worth recapping what Operation Keppel uncovered.
It has, after all, been quite some time since the public hearings and the dramatic events that led to Gladys Berejiklian’s resignation in October 2021.
Keppel began in October 2020 as a probe into disgraced Wagga Wagga MP Daryl Maguire’s conduct in office. It examined allegations that he attempted to broker property deals, seeking to monetise his position as an MP for his own gain. By this stage, Maguire had already resigned, after damning allegations were raised in a separate inquiry in 2018 about his property dealings.
Berejiklian was drawn into the inquiry in 2020 when she gave bombshell evidence that she had been in a secret relationship with Maguire.
Icac played intercepted phone calls in which Maguire told Berejiklian of his money woes and significant debt, and about his hopes to win significant commissions by making introductions and brokering property sales.
One year later, in October 2021, Icac announced it was broadening its investigation to examine whether Berejiklian ought to have reported Maguire’s conduct and whether her undisclosed relationship conflicted with her public duties. It examined Berejiklian’s involvement in two grants to organisations in Wagga Wagga, which Maguire had lobbied for, including the Australian Clay Target Association and the Riverina Conservatorium of Music in 2018.
Berejiklian has denied any wrongdoing and said she maintained the highest standards in public office. My colleague Tamsin Rose has more of a recap on Operation Keppel here:
Welcome to our liveblog of the findings of Operation Keppel, the New South Wales Independent commission against corruption’s investigation into the former Wagga Wagga MP Daryl Maguire, which was widened to include former premier Gladys Berejiklian after details of her “close personal relationship” with him were revealed.
Berejiklian resigned as premier in 2021 after the Icac revealed it was investigating whether she had been involved in a “breach of public trust” because of her relationship with Maguire.
She has consistently denied any wrongdoing, saying at the time: “history will demonstrate I have executed my duties again with the highest level of integrity for the benefit of the people of NSW, for who I have had the privilege to serve.”
The much-delayed report is expected to be released today.
Stay with us for all the news and updates.
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