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Slush fund chief helped draft Liberal letters to help AWH, Icac told Slush fund chief helped draft Liberal letters to help AWH, Icac told
(about 17 hours later)
The head of an alleged New South Wales Liberal party slush fund receiving regular payments from Australian Water Holdings (AWH) was involved in drafting letters, press releases and parliamentary questions on behalf of senior Liberals aimed at boosting the water company’s interests.The head of an alleged New South Wales Liberal party slush fund receiving regular payments from Australian Water Holdings (AWH) was involved in drafting letters, press releases and parliamentary questions on behalf of senior Liberals aimed at boosting the water company’s interests.
Emails obtained by the Independent Commission Against Corruption (Icac) showed that Tim Koelma, the chief of marketing company Eightbyfive, was drafting letters both to and from the office of the then opposition leader, Barry O’Farrell, about the Obeid-linked AWH.Emails obtained by the Independent Commission Against Corruption (Icac) showed that Tim Koelma, the chief of marketing company Eightbyfive, was drafting letters both to and from the office of the then opposition leader, Barry O’Farrell, about the Obeid-linked AWH.
At that time AWH was making monthly payments to Koelma’s company totalling $183,000. Icac is investigating allegations that Eightbyfive was a slush fund for channelling money, much of it from prohibited donors, to Liberal party election campaigns on the NSW central coast, in exchange for political favours.At that time AWH was making monthly payments to Koelma’s company totalling $183,000. Icac is investigating allegations that Eightbyfive was a slush fund for channelling money, much of it from prohibited donors, to Liberal party election campaigns on the NSW central coast, in exchange for political favours.
Koelma was a staffer for the former energy minister Chris Hartcher both before and after the events examined at the commission on Friday.Koelma was a staffer for the former energy minister Chris Hartcher both before and after the events examined at the commission on Friday.
In one instance, Koelma sent a draft letter from O’Farrell’s office in support of AWH’s bid for a lucrative public-private partnership to the water company’s chief executive, Nick Di Girolamo, asking him for input. In effect, Di Girolamo was being asked to help draft a letter to himself.In one instance, Koelma sent a draft letter from O’Farrell’s office in support of AWH’s bid for a lucrative public-private partnership to the water company’s chief executive, Nick Di Girolamo, asking him for input. In effect, Di Girolamo was being asked to help draft a letter to himself.
“Please let me know if you think it should be changed,” Koelma wrote. “I will ask them [O’Farrell’s office] for a draft before it is sent.”“Please let me know if you think it should be changed,” Koelma wrote. “I will ask them [O’Farrell’s office] for a draft before it is sent.”
At Di Girolamo’s request, Koelma organised for Hartcher to ask questions in parliament critical of the management of Sydney Water, who were strongly opposed to granting AWH the partnership.At Di Girolamo’s request, Koelma organised for Hartcher to ask questions in parliament critical of the management of Sydney Water, who were strongly opposed to granting AWH the partnership.
A press release in support of AWH’s bid was issued by Hartcher after being approved by Di Girolamo, earning the approval of federal Liberal senator Arthur Sinodinos, who sat on the water company’s board at the time, and emailed the AWH head: "thanks mate. looks good".A press release in support of AWH’s bid was issued by Hartcher after being approved by Di Girolamo, earning the approval of federal Liberal senator Arthur Sinodinos, who sat on the water company’s board at the time, and emailed the AWH head: "thanks mate. looks good".
"Do you see there's anything wrong with having a politician issue a press release based on proposed edits that would benefit your company?" counsel assisting the inquiry, Greg O’Mahoney, asked Di Girolamo."Do you see there's anything wrong with having a politician issue a press release based on proposed edits that would benefit your company?" counsel assisting the inquiry, Greg O’Mahoney, asked Di Girolamo.
Di Girolamo did not, but agreed with commissioner Megan Latham that the arrangement was “self-serving”.Di Girolamo did not, but agreed with commissioner Megan Latham that the arrangement was “self-serving”.
O’Farrell’s former chief of staff, Peter McConnell, also gave advice to Koelma on drafting letters on behalf of O’Farrell in support of AWH. Though Koelma sent the emails from an Eightbyfive address, McConnell said he believed at the time Koelma was still employed by Hartcher. “I wasn’t aware of the employment arrangements,” he said.O’Farrell’s former chief of staff, Peter McConnell, also gave advice to Koelma on drafting letters on behalf of O’Farrell in support of AWH. Though Koelma sent the emails from an Eightbyfive address, McConnell said he believed at the time Koelma was still employed by Hartcher. “I wasn’t aware of the employment arrangements,” he said.
McConnell sometimes liaised with AWH board members directly, writing in one email to Sinodinos: “Comrade, I have a letter from BOF [Barry O’Farrell] to Nick Di Girolamo on my desk. I want to make sure you can use it as an indirect letter of support for your project so you can go back to Walt [Secord, chief of staff for then-premier Kristina Keneally].”McConnell sometimes liaised with AWH board members directly, writing in one email to Sinodinos: “Comrade, I have a letter from BOF [Barry O’Farrell] to Nick Di Girolamo on my desk. I want to make sure you can use it as an indirect letter of support for your project so you can go back to Walt [Secord, chief of staff for then-premier Kristina Keneally].”
Earlier in the day, Liberal MP Marie Ficarra denied arranging for a property developer to give $5,000 to Eightbyfive to skirt electoral funding laws that prohibited political parties from accepting such donations.Earlier in the day, Liberal MP Marie Ficarra denied arranging for a property developer to give $5,000 to Eightbyfive to skirt electoral funding laws that prohibited political parties from accepting such donations.
Di Girolamo and AWH were at the centre of a related Icac inquiry earlier this year, investigating the company’s PPP bid, including allegations that it had conspired with Koelma to make a false corruption allegation against the then head of Sydney Water, Kerry Schott.Di Girolamo and AWH were at the centre of a related Icac inquiry earlier this year, investigating the company’s PPP bid, including allegations that it had conspired with Koelma to make a false corruption allegation against the then head of Sydney Water, Kerry Schott.
On Friday, Di Girolamo denied any role in assisting Koelma to make the fraudulent complaint. "I've got to put it to you, Mr Di Girolamo, that you're not being honest about that,” O’Mahoney said.On Friday, Di Girolamo denied any role in assisting Koelma to make the fraudulent complaint. "I've got to put it to you, Mr Di Girolamo, that you're not being honest about that,” O’Mahoney said.
“Well, I reject that,” Di Girolamo said. “I completely disagree,” Di Girolamo said.
The inquiry resumes on Monday.The inquiry resumes on Monday.