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Key events
Daryl Maguire boasted to Gladys Berejiklian in text messages 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.
‘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
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.
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”.
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!
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
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.
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.
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.
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.
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.
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.
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.
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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