What happens to Gladys Berejiklian now she’s been found corrupt? Why her Optus job is under threat

By William On Jun 29, 2023

Former NSW Prime Minister Gladys Berejiklian’s executive position at Optus could come online after the state’s corruption watchdog found she committed “serious misconduct” while in office.

Ms Berejiklian was parachuted into the newly created role of Managing Director, Enterprise, Business and Institutional for the telco in February last year after she abruptly stepped down as Prime Minister in 2021.

On Thursday, the Independent Commission Against Corruption said Ms Berejiklian and former Wagga Wagga member Daryl Maguire – both of whom were in secret relationships – were guilty of ‘seriously corrupt behaviour’.

ICAC has sought advice from prosecutors regarding the launch of criminal proceedings against Ms Berejiklian’s former lover, but has indicated that they will not recommend charges against her.

The report determined: ‘The Commission does not consider that consideration should be given to seeking the advice of the DPP in relation to the prosecution of Ms Berejiklian for any criminal offence.’

Either way, the corruption findings cast doubt on whether her position at Optus – Australia’s second-largest telco – remains tenable.

Ms Berejiklian envisioned leaving her home on Thursday before ICAC made its announcement

Ms Berejiklian’s former top minister, Matt Kean, put his spin on ICAC’s findings

In May this year, ahead of the ICAC findings, Optus CEO Kelly Bayer Rosmarin said the company was assisting Ms Berejiklian but would reassess their position when the report was released.

Ms Bayer Rosmarin said the ICAC investigation was linked to events that happened ‘long before Gladys joined Optus’.

“We will have to look at the findings when they come out and that will be a matter for Gladys, and then we will decide if there is anything relevant for Optus,” she told the Australian Financial Review.

The company “didn’t expect” anything to come out that would jeopardize its role, she added.

Former political power broker Graham Richardson, who previously defended Ms Berejiklian, said he believes she should step down from her executive job.

‘I think… she will resign. I would be very surprised if Optus keeps her,” he said on Sky News.

“There is no joy for Gladys no matter which way she looks. And I find that very sad.’

“I think Gladys Berejiklian has hit a dead end.”

Ms Berejiklian takes on the role of Managing Director, Enterprise, Business and Institutional at Australia’s second largest telco

NSW Liberal Prime Ministers who brought down ICAC

NICK GREINER: The Independent Commission Against Corruption was set up in 1988 by the Greiner government, only for the Terry Metherell affair to force his resignation in June 1992.

Mr Metherell, a former Liberal education minister, was now an independent in a hung parliament and he was offered a job leading the new Environment Protection Agency, within the department, so that the government could reclaim his Sydney North Shore seat from Davidson

BARRY O’FARRELL: A month after winning a landslide election victory, in April 2011 Mr O’Farrell was gifted a $3,000 bottle of Grange Hermitage that he had not declared

He resigned after this was revealed at an ICAC hearing in April 2014

ICAC said in a statement on Thursday that between 2012 and 2018, “Mr Maguire improperly used his office and the resources he had access to as an MP for the benefit of G8wayInternational Pty Ltd.”

The Commission said he was “essentially a director” of the company and had made arrangements with others to share in the profits.

“Mr Maguire also failed to disclose his interest and position in G8way International or all sources of his income as he was required to do,” it added.

He also abused his MP position and role as chairman of the NSW Parliament Asia Pacific Friendship Group to further his financial interests and those of his associates, it said.

The Commission found that in 2016 and 2017, Ms Berejiklian violated public trust by exercising her official functions in relation to two government-funded construction projects that Maguire lobbied for.

The two Wagga Wagga based projects were the Australian Clay Target Association (ACTA) and the Riverina Conservatorium of Music (RCM).

“Ms. Berejiklian had chaired and/or was a member of the meetings of the Expenditure Review Committee (ERC) that approved grants,” it said.

The grants include $5.5 million for ACTA and $10 million for the refurbishment and repurposing of a new government site to make it suitable for the purpose of the RCM (RCM Stage 1).

“At the same time, Mr. Maguire and Ms. Berejiklian had an undisclosed close personal relationship.”

ICAC said Ms. Berejiklian helped guide the project through the funding and approval processes without disclosing a conflict of interest.

It also ruled that she had failed in her duty to report suspicions of Mr Maguire’s corrupt conduct to ICAC.

NSW Premier Chris Minns said on Thursday that he was critical of the ICAC investigation, which has been going on for more than 18 months.

“This report has gone on far too long, that is widely recognized across the political spectrum in NSW,” he said.

He added that nothing in the report detracted from Ms Berejiklian’s handling of the Covid crises, which he deemed ‘excellent’, but that it was a reminder of the importance for those in public office to report conflicts of interest .

Why ICAC won’t push for criminal charges despite corruption finding

Criminal misconduct requires several elements, including a “nefarious motive” and a higher standard of proof.

For ICAC’s finding, it must be established that Ms. Berejiklian has deliberately failed to fulfill her duties.

“The Commission concludes that there is insufficient evidence, particularly in the absence of evidence from Ms. Berejikilan, to draw conclusions that would prove the crime of misconduct in public office to the required standard beyond reasonable doubt.”

The Commission said it was “reasonably clear” that any advice from the DPP would mean no prosecution should be brought.

They have therefore not filed a complaint with the DPP regarding Ms. Berejiklian.