New South Wales Premier Gladys Berejiklian intervened in the assessment of a $5.5 million grant to a shooting association in Daryl Maguire's electorate, months after he had written to her asking for assistance to fund the project.
Key points:
- A sporting association championed by Daryl Maguire was given a $5.5m grant for facilities in Wagga Wagga
- Gladys Berejiklian, who was treasurer at the time, has previously downplayed her involvement in awarding the grant
- New documents released reveal Ms Berejiklian intervened in the assessment of the grant
A cache of new documents released to the NSW Parliament after a request from NSW Greens MLC David Shoebridge raises fresh questions about the Premier's role in facilitating a grant that Mr Maguire stood to gain a political benefit from, at the same time she was secretly in a relationship with him.
Last year, 7.30 revealed Ms Berejiklian oversaw a fund that set aside $5.5 million in grant funding for the Australian Clay Target Association's clubhouse and convention centre in Wagga Wagga while she was NSW treasurer.
Mr Maguire is currently the subject of an extensive investigation into his business dealings, which is examining whether he misused his position as a state MP.
Mr Maguire had been publicly calling for a convention centre in Wagga Wagga since 2005, and after the grant was announced he was praised in his electorate for playing a critical role in its delivery.
In the 2015 election, Mr Maguire suffered a 14.9 per cent swing against him.
Ms Berejiklian has previously downplayed her involvement in awarding the grant, telling an estimates hearing in NSW Parliament: "If you are suggesting that the treasurer of the day personally signs off on every single funding allocation that is made, that is incorrect."
But the new documents released to the NSW Parliament appear to show that Ms Berejiklian played a greater role than she has previously disclosed.
ABC News: James Carmody
)The documents reveal Mr Maguire first wrote to Ms Berejiklian on behalf of the then-CEO of the Clay Target Association on January 27, 2016, seeking funding from the NSW government.
Ms Berejiklian's response on February 18, 2016, referred him to then-sports minister Stuart Ayres: "The Minister will respond to you on behalf of the NSW Government. Thank you for bringing Mr Turner's request to the Government's attention."
Supplied
)On December 14, 2016, the Expenditure Review Committee (ERC) reserved funding for the grant following a submission from Mr Ayres.
As treasurer at the time, Ms Berejiklian would ordinarily chair the ERC and take part in approving submissions from cabinet ministers for funding reservations.
Anthony Whealy, a former Independent Commission Against Corruption (ICAC) assistant commissioner and a director of the Centre for Public Integrity, told 7.30 that if the Premier played a decision-making role in awarding grants where Mr Maguire was likely to benefit politically, then this could give rise to an actual or perceived conflict of interest.
"But on the face of it, that does raise a serious question."
7.30 put detailed written questions to the Premier about the ERC meeting and whether she participated in it, but she did not provide an on-the-record response.
The Premier has previously said in response to questions about the ACTA grant:
"The Premier was not under investigation nor was she an adversely affected person for the purpose of the [ICAC] investigation.
"The record will show that the Premier has been cooperative with the ICAC investigation and assisting it when requested to do so.
"As you have noted, ICAC led evidence from witnesses in relation to the connection between Mr Maguire and the Australian Clay Target Association (ACTA). That was not the subject of any questioning of the Premier."
Ms Berejiklian has previously said she did not tell anyone about her relationship with Mr Maguire, telling reporters last year: "This was a relationship I did not share with anybody — not my family, not my closest friends."
Grant initially failed to meet assessment criteria
Funds from that program are drawn from the Restart NSW Fund, which requires a detailed cost-benefit analysis to be undertaken after a business case is prepared.
The documents reveal the grant failed an initial cost-benefit analysis undertaken in April 2017 by the Department of Industry, scoring 0.88. All grants must receive a cost-benefit ratio above one.
The assessment found it was "highly unlikely that the conference facility will attract significant numbers of international and interstate visitors to NSW" and concluded the estimated number of international visitors to the Wagga shooting facility "appears erroneous".
It was then reassessed in July 2017 and scored 1.10, meeting the assessment criteria.
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But 7.30 can reveal that reassessment appears to have been undertaken following a direct intervention from Ms Berejiklian, according to the new documents.
The executive director of Regional NSW, Chris Hanger, wrote to Infrastructure NSW CEO Jim Betts on June 1, 2017, requesting the clay target grant and three other unrelated grants be considered for approval.
In that letter, Mr Hanger wrote:
"The Department's Investment Appraisal Unit has assessed the updated business case provided by ACTA for the development of a large clubhouse/conference facility and associated infrastructure at their existing site in Wagga Wagga following a request by the Premier."
Weeks later, Ms Berejiklian's interest in the approval of the grant was once again raised by other senior NSW officials.
In a further email from deputy secretary of Regional NSW, Gary Barnes on June 20, 2017, Mr Barnes provided an update on the approval of the clay target funding to a senior staffer in the Premier's office.
Mr Barnes indicated the funding would soon be approved, and then wrote in the email: "Just wanted you in the loop given Premier's interest."
Mr Whealy told 7:30: "Again, it just raises the question about a conflict of interest. Should the Premier be requesting this reassessment? It does strike me on the face of it as being undesirable."
7.30 put detailed questions to Ms Berejiklian about the request she made, and about the nature of her interest in the grant process, but she did not respond.
The Premier has previously told reporters in relation to questions about the ACTA grant: "As I've said and I'll say again, the integrity agency — if you trust the integrity agency — let them do their work."
"They had all this information. They've stated that I'm not an affected witness and that remains the case."
Extraordinary lengths taken to approve grant
Five months after Mr Maguire first publicly announced the grant in January 2017, the Australian Clay Target Association was still waiting on information from the NSW government about how it would receive the grant funding and from which government agency.
The grant ultimately provided to the Clay Target Association was bigger than it had initially sought, and for a larger convention space, after its then-CEO Tony Turner received a phone call from a government official saying an unidentified government minister "wants it bigger".
ABC News
)Mr Turner emailed Mr Maguire on May 8, 2017, saying: "Sorry to be a constant pain, I had the chief of staff from the deputy Premiers (sic) office ring regarding the grant, he said he would send the 'paper work', I still haven't seen anything."
Mr Turner continued: "My understanding is that the money was granted to build the facility of the size as agreed with former Minister Stuart Ayres."
Behind the scenes, there was a flurry of activity, with staff from the highest levels of the NSW government involved in securing the grant for the Wagga-based shooting association.
While the ACTA grant was initially supposed to be a sports grant, it was then moved through an assessment process linked to the regional environment and tourism fund.
After returning a cost-benefit analysis below 1, a staffer from Deputy Premier John Barilaro's office requested changes to the business plan prepared for the grant, in a series of emails in April and May 2017.
After the business plan was revised, it was then resubmitted for a further assessment, which according to the documents was at the request of the Premier.
A senior departmental official emailed Mr Barilaro's then-chief of staff, telling her: "Pls (sic) note the attached. With extra info now over bcr (business-cost ratio) 1."
"Local member will be happy."
A spokeswoman for the Department of Regional NSW told 7.30:
"The Department assessment process is based on the project's merit. Ministers are not involved in the assessment process."
"Funding applicants often seek advice during the application process.
"Guidance is often provided to applicants to ensure applications clearly demonstrate that a project meets program guidelines and eligibility criteria and properly outline the benefits that a project will provide.
"Cluster Ministers routinely request information from their Department."
ICAC investigation continues
The Independent Commission Against Corruption was initially expected to move towards completing its investigation at the end of last year and notifying adversely affected parties.
But after 7.30's investigation of the Clay Target Association grant in Mr Maguire's electorate last year, ICAC advised it was undertaking "further investigative steps".
Investigators from ICAC have since made further enquiries about the Australian Clay Target Association grant.
7.30 can reveal ICAC investigators have contacted a number of current and former members of the Australian Clay Target Association.
The corruption watchdog has also issued at least two notices to produce that relate to the awarding of the grant.
The focus of the ICAC's renewed inquiries is unclear, and 7.30 is not suggesting they are investigating the Premier herself.
In the event ICAC had concerns about Ms Berejiklian's role in administering this grant, they would be required to notify her.
Ms Berejiklian has previously said: "The Premier was not under investigation nor was she an adversely affected person for the purpose of the [ICAC] investigation."
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2021-08-08 19:08:28Z
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