Barry O'Farrell: what a difference a day makes

On Tuesday the NSW Premier was at ICAC
denying he'd been given a $3000 bottle of Grange. On Wednesday morning
he was back to apologise having resigned already.










It seems so harsh. A forgotten gift allegedly left on the
porch while the O'Farrells were on holiday has brought down a well liked
Premier.




But the problem for Barry O'Farrell is that this is not the
first time he's forgotten a thing or two about Nick Di Girolamo, the
chief executive of Australian Water Holdings whose affairs are now being
investigated by the Independent Commission Against Corruption.






Nick Di Girolamo, whose links to the NSW government have come under scrutiny at the ICAC.
Nick Di Girolamo, whose links to the NSW government have come under scrutiny at the ICAC. Photo: Sasha Woolley






And with each memory lapse a little more paint comes off the
Premier, who has prided himself on running a shiny new style of
government, entirely different from the tawdry and corrupt Labor that
NSW endured for 16 years.




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The obfuscation began early on, when Mr O'Farrell gave the
impression that he barely knew Nick Di Girolamo, a big wheel in the
Liberal Party, a major fund-raiser and also head of Australian Water
Holdings (AWH).



Last year as the ICAC prepared to launch an inquiry, Mr O'Farrell told the Australian Financial Review he had attended only one meeting with Mr Di Girolamo on AWH, with then finance minister Greg Pearce, in May 2011.






Barry O'Farrell responds to questions after his appearance at the ICAC hearing on Tuesday.
Barry O'Farrell responds to questions after his appearance at the ICAC hearing on Tuesday. Photo: Sasha Woolley






The remark left the impression Mr O'Farrell barely knew Mr
Di Girolamo. In fact, the Premier had attended three private
fund-raising dinners before the election, been photographed with Mr Di
Girolamo at an Italian function, attended West Tigers functions with him
and it turns out accepted a $3000 bottle of Penfolds Grange.



Soon after the gift, Mr O'Farrell's chief of staff
recommended Mr Di Girolamo be appointed to the board of the
government-owned Water Corp. He was also granted a meeting with the
Premier and his finance minister, Greg Pearce, to discuss AWH's contract
with Sydney Water. Mr Pearce described the meeting as “cosy”.



Nine months later, AWH was awarded a 25-year contract worth $100 million. The awarding was done by Sydney Water, not cabinet.






Tim Koelma leaves an ICAC hearing on April 7.
Tim Koelma leaves an ICAC hearing on April 7. Photo: Rob Homer






But the scandal over water contracts and wine is only part
of the problem. A second inquiry into former Liberal resources minister
Chris Hartcher and a slush fund operated by his former staff member Tim
Koelma also promises to raise more questions about the influence of Mr
Di Girolamo.



By March 2012, Mr Di Girolamo had become a lobbyist for
Kores, which owns the highly controversial Wallarah 2 coal mine on the
central coast. The project was denied approval by the former Labor
government just before the March 2011 state election.



As opposition leader, Mr O'Farrell and his central coast
spokesman, Mr Hartcher, had held a rally in 2009 opposing the project.
"The next Liberal-National government will ensure mining cannot occur
here ... no ifs, no buts. A guarantee," Mr O'Farrell said.



In January 2012, Kores resubmitted its plans - soon after Mr
Hartcher, as the new resources minister, told Parliament all mining
proposals should be subject to "merit-based assessments".



Earlier this year, the NSW Department of Planning announced
it was recommending the approval of Wallarah 2, subject to strict
conditions.



AWH has also been revealed as one of the major contributors to a slush fund, Eight by Five, operated by Mr Koelma.



More is certain to emerge in the separate ICAC inquiry, due after this one.