Former NSW premier Gladys Berejiklian (Image: AAP/Bianca De Marchi)

When Gladys Berejiklian resigned as NSW premier on October 1, the plaudits came thick and fast. She was hailed as a feminist icon, the first popularly-elected woman premier of the country’s largest state. Prime Minister Scott Morrison told journalists that “she has displayed heroic qualities … as the premier of New South Wales”.

Three weeks later, those people who praised Berejiklian are now silent as the NSW Independent Commission Against Corruption (ICAC) investigates whether Berejiklian “breached public trust” or “encouraged corrupt conduct” between 2015 and 2018, during which time she was in a secret “close personal relationship” with former Wagga Wagga MP Daryl Maguire.

Several bureaucrats have told ICAC that they had recommended against granting funding totalling $35.5 million to two projects in Maguire’s electorate, on the grounds of insufficient merit. However, they were overruled by politicians and the money was advanced. 

Former minister for sport Stuart Ayres is in the ICAC witness box this morning, giving evidence of the circumstances in which a Wagga Wagga gun club was granted $5.5 million to upgrade its club house. Ayres is not accused of any wrongdoing.

Outside ICAC, speculation is running rife. If Berejiklian is found to have breached public trust, what happens next? There are three possible outcomes — although the most likely result seems to be that no further action would be taken now that she has resigned from public life. With Coalition governments in place in NSW and Canberra, there will be no political will to pursue her further, despite the electoral damage. 

The most serious outcome would be a referral to the Office of the Director of Public Prosecutions (ODPP), which would make its own determination about further action. However, the threshold for criminal prosecution is high and the ODPP can be reluctant to expend public money on those prosecutions that may not succeed in court. 

Another course of action would be a referral to NSW Parliament’s Standing Committee on Parliamentary Privilege and Ethics. One of its functions relates to section 7A of the Independent Commission Against Corruption Act 1988, which defines corrupt conduct. 

As Berejiklian was a NSW MP for 18 years, and premier for four, she is entitled to a substantial pension and generous superannuation benefits. But section 19AA the Parliamentary Contributory Superannuation Act 1971 states that a parliamentarian’s eligibility for a pension arises after having been in office for seven years, “except where the member or former member is charged with or convicted of a serious offence”. This is defined as either an offence punishable by a term of five years or more, or “an infamous crime”. 

Ayres, now the NSW minister for jobs, investment, tourism and Western Sydney, has told ICAC this morning that he had knocked back the $5.5 million request from Maguire for the Australian Clay Target Association (ACTA) in 2014 and 2016. 

However, Maguire was “relentless” and the requests for funding ongoing. Although the usual practice was that grant applicants had to pay for their own business cases, ICAC has heard that NSW taxpayers paid $40,000 for a consultant firm to write one for ACTA. 

Counsel assisting ICAC Scott Robertson asked Ayres why the government decided to do this, considering it was a private organisation. 

“Why didn’t you simply turn around … [and say] ‘you need to demonstrate to me that this is money worth spending?’” Robertson said.

There was a “question mark” about whether the association had the money to fund their business case, Ayres replied. 

The Minister said he thought the proposal had merit but wanted “greater research or a business case behind it” before it went any further.

The hearing continues.