ICAC and the Prime Minister

Advertisement
imgres

The AFR has quite a lead story today:

The Independent Commission Against Corruption’s investigation is inching closer to the Prime Minister’s office. Questions have emerged over Tony Abbott’s role in selecting Karen McNamara as Liberal candidate for the federal seat of Dobell despite doubts over her fund-raising claims.

Mr Abbott was widely reported to be behind the decision by the NSW state executive on April 20, 2012 to appoint McNamara to replace problematic candidate Garry Whitaker. This was three months after ­senior Liberals received complaints of an unreported donation on the central coast and despite McNamara’s earlier claims of huge fund-raising which did not correspond with party records.

Dobell is the point where ICAC’s investigation of state fund-raising threatens to expand into the federal party. It is also one of the seats where the prime minister had the most intense interest, after losses in the central coast cost Abbott the 2010 election.

…Any investigation of NSW state finances inevitably involves some scrutiny of federal fund-raising. It’s done by the same people, the same structures, there are constant crossovers. John Caputo, who was questioned over cheques he gave to former Energy Minister Chris Hartcher, is Abbott’s chief fund-raiser in Warringah and works with Treasurer Joe Hockey’s funding body.

…More than $400,000 was secretly channelled into the Eightbyfive slush fund ­operated by Tim Koelma, a former Hartcher staffer. After years of minimal payments to the state party the Free Enterprise Foundation paid out $787,000 to NSW in 2010-11.

This is complex story of coincidence, back room deals and poor decisions, too long to repeat here. I suggest you read it at the paper where Neil Chenoweth has done a very good job.

Advertisement

It appears the PM is unlikely to face worse than a sizable dent in the duco but it clearly shows that the shadowy world of campaign finance and pre-selection is replete with risk, both real and perceived, for the Libs as much as it is for Labor.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.