Paluzzano faces jail for lying to ICAC

NSW Labor MP Karyn Paluzzano's career is in ruins and she faces a possible prison
term after admitting to defrauding state parliament, misusing public money, and
lying to the corruption watchdog.
The Member for Penrith broke down as she gave evidence to the Independent Commission
Against Corruption (ICAC) on Thursday, confessing to a series of breaches of the
MP's code of conduct - a document she said she had not read and did not even know
existed.
On Thursday - seven years to the day she entered parliament and as she marked her
50th birthday - Ms Paluzzano told the inquiry she signed false and misleading staff
payment forms, and lied about it when questioned by the ICAC during a compulsory
examination last month.
"I was in shock and denial at the time of the compulsory hearing," Ms Paluzzano said.
"I accept I've made false declarations."
Lying to ICAC is an indictable offence that carries with it a term of imprisonment.
The allegations against Ms Paluzzano were first raised in January by her former
staffer, Tim Horan.
He blew the whistle on a scheme whereby Ms Paluzzano's staff made false declarations
about working at Parliament House with her on sitting days, allowing them to make
claims for an allowance.
Ms Paluzzano consistently denied the claims made against her until the ICAC hearing
began this week.
She resigned as a parliamentary secretary for education on Tuesday.
On Thursday afternoon NSW Premier Kristina Keneally released a statement, advising
that Ms Paluzzano's Labor Party membership would be reviewed.
"In light of today's testimony in the ICAC by Mrs Karyn Paluzzano, I have directed
the NSW ALP general secretary, Mr Sam Dastyari, to immediately review her membership
of the Australian Labor Party," Ms Keneally said.
"I am of the view that her testimony today places her outside the party and her
membership should be suspended.
"This inquiry is ongoing and I will await the final report of the ICAC commissioner."
Ms Paluzzano wiped away tears as she admitted to the inquiry she only decided to
tell the truth when she saw the weight of evidence against her.
"There were a number of false allegations made by Mr Horan in the public forum. I
instantly became defensive and in denial," she said.
"However, upon the first day of this hearing the impact on my staff, and from my
staff having to admit to what happened in this time between 2006 and 2007, has had a
very strong impact on me.
"It has distressed me greatly. The realisation that a denial could not be maintained."
The ICAC hearing concluded on Thursday, with a report to be handed down by
Commissioner David Ipp QC later in the year.