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Posted: 2016-08-29 21:06:00

Updated August 30, 2016 09:46:41

The long-anticipated findings of a corruption inquiry into alleged illegal political donations that saw 10 New South Wales Liberal MPs resign or go to the crossbench will be handed down today.

Operation Spicer began as an investigation into Liberal Party slush fund Eight By Five.

The Independent Commission Against Corruption (ICAC) heard Eight By Five was designed to "wash" donations from developers, who were banned from donating to political parties in the lead up to 2011 election.

By the end of nine weeks of public hearings, the inquiry had expanded to cover illegal donations that bankrolled Liberal Party campaigns across the Central Coast and Hunter regions, and 10 Liberal MPs had resigned or moved to the crossbench in the wake of the allegations.

The Canberra-based Free Enterprise Foundation also emerged as a major mechanism for disguising donations to the NSW Liberal Party campaign, including from banned donors.

During the course of the public hearings, the ICAC heard explosive evidence about the lengths some Liberal Party figures went to in order to skirt the ban on developer donations as the party tried to win government.

One MP sensationally admitted he had taken a wad of a cash directly from a developer in the back of a luxury car, while another fronted the hearing and admitted he had lied under oath the day before about returning a banned donation.

Questions were also raised about how much senior Liberal Party figures knew about the scheme, including federal Senator Arthur Sinodinos, who was the treasurer of the NSW Liberal Party at the time.

The inquiry also delved into political skulduggery within the Labor Party, including a smear campaign allegedly organised by powerbroker Joe Tripodi and coal mogul Nathan Tinkler in order to oust one of Mr Tripodi's own MPs, Jodi McKay.

The inquiry's public hearings wrapped up almost two years ago, but the findings have been delayed by a series of court challenges and a review of the ICAC's powers.

The findings are expected to address the ICAC's conclusions about the following former Liberal MPs:

Chris Hartcher

Right-wing powerbroker and former energy minister Chris Hartcher was forced onto the crossbench after the ICAC accused him of being at the heart of Eight by Five.

The inquiry heard evidence it was a sham company set up by one of Mr Hartcher's staffers to funnel about $400,000 into state Liberal campaigns.

Mr Hartcher was also accused of involvement in funnelling money through the Canberra-based Free Enterprise Foundation, which was also used to "wash" money from banned donors.

Mr Hartcher continued to maintain his innocence throughout the hearings.

Darren Webber

The Member for Wyong went to the crossbench over allegations that his 2011 campaign had been partly bankrolled by donations from Eight By Five.

The ICAC heard he was paid a monthly retainer by the company for work that was apparently a sham.

Chris Spence

The Member for The Entrance went to the crossbench after he was accused of receiving illegal donations washed through Eight By Five.

Mr Spence gave evidence that he knew the money he was paid by Eight By Five came from developers "in a round-about way", but denied the invoices he provided were something he had "cooked up" to try to justify the payments.

Marie Ficarra

The Upper House Liberal MP stepped aside from the parliamentary party after she was accused of soliciting a $5,000 donation from a developer which was banked by Eight By Five.

During her evidence Ms Ficarra denied soliciting the donation but said she had been distracted during her conversation with the developer because her miniature Schnauzer, Liesel, was gravely ill.

Mike Gallacher

Perhaps Operation Spicer's most high-profile casualty, then police minister Mike Gallacher, was forced to resign from the frontbench in May 2014 after counsel assisting the inquiry Geoffrey Watson accused him of "hatching a corrupt scheme" to hide donations from a development company controlled by Mr Tinkler, a former billionaire.

Mr Gallacher was banished to the crossbench, but vowed to clear his name.

The Upper House MP is the only state MP affected by the inquiry who remains in Parliament.

He has made no secret of the fact he still has ambitions to return to the frontbench.

Andrew Cornwell

The Member for Charlestown resigned from Parliament, forcing a by-election, after admitting to taking a $10,000 wad of cash from Newcastle's developer mayor Jeff McCloy in the back of Mr McCloy's luxury car.

He also admitted to taking $10,000 from developer Hilton Grugeon, which he said he used to pay his tax bill.

Tim Owen

The Member for Newcastle resigned from Parliament, forcing a by-election, after admitting he took an envelope stuffed with $100 notes from Newcastle's developer mayor Jeff McCloy, and then lied under oath to the ICAC about what he had done with the money.

Mr Owen initially told the corruption watchdog he had returned the money, but then returned to the witness box a day later to admit that had been a lie.

Garry Edwards

The Member for Swansea moved to the crossbench after admitting he had taken an envelope of cash from Newcastle's developer mayor Jeff McCloy.

He gave evidence that he did not look at its contents, but passed it to a Liberal Party official, who had since died.

Bart Bassett

The Member for Londonderry, Bart Bassett, went to the crossbench after the counsel assisting the ICAC said there was direct evidence that $18,000 from Nathan Tinkler's development company Buildev found its way through the Free Enterprise Foundation to Mr Bassett's election campaign and was used on advertising.

Mr Bassett rejected the allegations against him.

Craig Baumann

The Member for Port Stephens became the 10th Liberal MP to step aside as a result of the inquiry.

He conceded he had written sham invoices to cover up payments from developers to his 2007 campaign, even though developer donations were not banned until 2010.

Topics: political-parties, government-and-politics, law-crime-and-justice, corruption, newcastle-2300, sydney-2000, nsw

First posted August 30, 2016 07:06:36

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