Barry O’Farrell called to give evidence to NSW corruption inquiry
NSW PREMIER Barry O’Farrell has been called to give evidence before a corruption inquiry into a company linked to the Obeid family.
Mr O’Farrell will appear tomorrow before the Independent Commission against Corruption inquiry into Australian Water Holdings, which billed the public-owned Sydney Water for limousines, flights and entertainment which had nothing to with providing water and sewerage in Sydney.
He will become the third serving premier to give public evidence to the ICAC.
Counsel assisting Geoffrey Watson SC told the inquiry today he had been “in two minds” as to whether Mr O’Farrell should be called.
“(However) there have been things that have developed that make me think that he should be called, or that he must be called,” he said.
The public inquiry has already heard evidence from Mr O’Farrell’s former chief-of-staff Peter McConnell, Liberal Senator Arthur Sinodinos, three former NSW premiers and ex-Labor MP Eddie Obeid, whose family allegedly had a secret stake in AWH.
Mr O’Farrell confirmed he will appear at the ICAC inquiry, adding: “I will not pre-empt any of the matters or any of the questions it may put to me.”
Mr O’Farrell was cleared of wrongdoing on the first day of the inquiry by Mr Watson.
However the ICAC has heard evidence that AWH lobbied the new Coalition state government heavily in 2011 to try to obtain a public-private partnership worth more than $1 billion.
It has also heard that Mr O’Farrell held a meeting with the chief executive of AWH Nick Di Girolamo, took phone calls from him, and while in opposition gave AWH a letter of support.
Notes taken by Mr Di Girolamo record Mr O’Farrell as expressing sympathy for AWH and being highly critical of Sydney Water.
Mr Di Girolamo also knew Mr O’Farrell through their mutual support of the West Tigers rugby League club.
Today Mr Di Girolamo was challenged about his salary at AWH.
Mr Watson said that when he joined the company he had realised that the company worked on having its expenses reimbursed by Sydney Water, and “you immediately formed the view you would milk, didn’t you?”
Mr Di Girolamo denied this.
Mr Watson: “You commenced on a pattern which developed into a fraud, do you accept that?
“I do not,” Mr Di Girolamo said.
Mr Di Girolamo was paid up to $1.3 million to head Australian Water Holdings.
The inquiry heard that when the chief financial officer tried to normalise the accounts in 2012, he had attributed a value of $350,00 to the chief executive position.
Mr Watson asked him: “Why were you worth three times the market place price?”
“That was the agreement that was reached when I started,” Mr Di Girolamo said.
Asked if he would have accepted $100 million if that was the agreement, he paused, and said he wouldn’t.
Mr Di Girolamo later agreed that a series of payments, including restaurant bills, trips to Cairns casino, services of a Liberal lobbyist, and donations to the Italian Chamber of Commerce and the Liberal Party were mistakes which should not have been billed to Sydney Water.
He denied that he was shouting lunches and making donations in order to big note himself around town.
He blamed a breakdown in office procedures between AWH staff and the accounting company which certified the payments.
He said that a $300 wedding gift to a staff member came under incidental office costs, for which there was a provision to claim from Sydney Water.
Mr Di Girolamo agreed that he could have handed over to Sydney Water details of the invoices and receipts that the company was claiming, but it would have changed the “contractual arrangements” between the two companies.
He had not acted on an independent determination of the dispute to hand them over.
Mr Watson said it was part his determination to “hide what you knew to be a fraud.”
“I don’t accept that,” Mr Di Girolamo replied.
