ICAC hearing: Barry O'Farrell unable to explain phone call to Nick Di Girolamo who allegedly sent $3,000 bottle of wine

Updated

New South Wales Premier Barry O'Farrell has been unable to explain to the Independent Commission Against Corruption (ICAC) a call from his phone to a water executive who allegedly gave him a $3,000 bottle of wine.

ICAC alleges the company Australian Water Holdings (AWH) lobbied Mr O'Farrell over an agreement with the state-owned Sydney Water to roll out water infrastructure.

AWH is accused of corruptly billing Sydney Water for expenses and using the money for political donations, executive salaries and various other expenses.

AWH executive Nick Di Girolamo earlier told the inquiry he sent the Premier a $3,000 bottle of wine in 2011 to congratulate him after the election.

The bottle of Grange dated May 24, 1959 - Mr O'Farrell's birthday - does not appear on the Premier's pecuniary interests declaration for the period.

Counsel assisting the inquiry Geoffrey Watson asked Mr Di Girolamo: "What were you attempting to secure?"

Mr Di Girolamo said the gift was not to try to secure favourable decisions for AWH but to congratulate Mr O'Farrell on becoming premier after "16 long, hard winters in opposition".

However, Mr O'Farrell denied receiving the wine at all, telling the inquiry: "I'm not a wine connoisseur".

The Premier also said he had no recollection of the 28-second call made from his phone to Mr Di Girolamo in 2011 around the time he was allegedly sent the wine.

But Mr Di Girolamo had earlier told ICAC that Mr O'Farrell phoned him to thank him for the gift.

Mr O'Farrell also denied giving AWH favourable treatment for political donations and said while he could not remember the phone call, it could have been about anything.

After leaving the hearing, the Premier again strenuously defended his actions.

"There's reference to a mystery bottle of wine ... there's no dates as to when it was allegedly delivered," he said.

"What we know for certainty is not only do my wife and I have clear recollection that no such bottle of wine was received ... but that at the period over which it was supposed to have been delivered is vague.

"But what's not vague is that my family spent most of that period in Queensland."

Earlier in the ICAC witness box, Mr O'Farrell said if he had been given the wine, he would have declared it.

"In 19 years in politics there are not a lot of gifts I get that exceed the [declarable] value," he said.

"If you got a 1959 bottle of Grange ... you would remember it."

ICAC alleges Mr Di Girolamo was a friend of the Obeid family and that they had a secret stake in AWH.

O'Farrell wrote letter in support of AWH project

Mr O'Farrell also denied writing a letter of support for AWH in exchange for political donations.

The Premier told ICAC he signed a letter about a public-private partnership (PPP) between AWH and Sydney Water because at the time it had some merit.

He said he took an interest in a proposal to roll out water infrastructure through a PPP because the project focused on releasing land for housing in Sydney's north west.

Mr O'Farrell admitted he was driven to the site where the work for the AWH project was to be carried out.

Questioned about his relationship with Mr Di Girolamo, the Premier said he ran into him at Liberal Party fundraisers and Wests Tigers NRL functions.

Mr O'Farrell said he became aware of a dispute between AWH and Sydney Water over money.

When asked if Mr Di Girolamo was pursuing him relentlessly over the project when he was in opposition, Mr O'Farrell said he had been sent a letter about the PPP.

"PPP's are not unusual ... Nick Greiner started them with toll roads in Sydney ... whether people like it or not - they continue," he said.

Counsel assisting Geoffrey Watson said there are records of AWH money going into Liberal Party coffers.

"I reject it completely," he said.

"I'm the premier who tried to restrict donations in NSW to individuals," he said.

Mr Watson replied: "As soon as I asked that question, I regretted it."

Topics: government-and-politics, liberals, alp, corruption, sydney-2000, nsw

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