MP Paluzzano may face criminal charges

Disgraced former NSW Labor MP Karyn Paluzzano may face criminal charges after the
corruption watchdog found her guilty of rorting her staff entitlements.
The Independent Commission Against Corruption (ICAC) on Tuesday released its report
on the former Penrith MP, who had been accused of misusing public funds and lying
about it to the commission during a formal interview.
ICAC recommended the Director of Public Prosecutions (DPP) consider laying criminal
charges against Ms Paluzzano over her part in the scheme, which saw staff paid for
sitting days in parliament when they were in fact working at her electorate office.
"The commission recommends that consideration be given to obtaining the advice of
the Director of Public Prosecutions (DPP) with respect to the prosecution of Mrs
Paluzzano for various criminal offences," ICAC said in a statement.
These offences may include misconduct in public office, obtaining money for a
staffer and giving false or misleading evidence, it said.
If convicted the former MP could face jail, with a maximum prison sentence of seven
years for the offence of misconduct in public office.
In May, ICAC Commissioner David Ipp QC held hearings into the corruption allegations
raised by Ms Paluzzano's former staffer Tim Horan, after the MP was accused of
rorting sitting-day relief payments for her staff.
The watchdog found staffer Jennifer Launt received $4200 she was not entitled to
under the false pay claim scheme.
Instead she worked in the MP's Penrith electorate office on non-sitting days, and
even helped Ms Paluzzano doorknock constituents.
The declarations continued in 2007, with Mrs Paluzzano fraudulently engaging three
more staff members under the sitting-day relief payments, subsequently claiming
about $3400.
ICAC said Mr Horan, Ms Launt and another staff member, Kerrie Donlan, had engaged in
corrupt conduct over the false payment declarations.
It recommended their employment as public officials be terminated, rather than legal
action taken.
The allegations were first raised in January but it was not until the May hearings
that Ms Paluzzano admitted to the claims.
The disgraced MP subsequently quit as a parliamentary secretary, then resigned from
parliament altogether, triggering a by-election that saw Labor lose her once-safe
seat to the Liberals after a record swing of nearly 26 per cent.
Until Ms Paluzzano's admission, NSW Premier Kristina Keneally had defended the MP's
entitlement to the presumption of innocence.
Speaking in China on Tuesday, Ms Keneally said the ICAC process "has worked as it
should".
"Now it will be up to the DPP to consider if charges should be laid," she told
journalists.
But NSW Opposition Leader Barry O'Farrell criticised the premier's handling of the
scandal, calling on her to take stronger action against Labor MPs accused of
corruption.
On Tuesday, it was revealed that controversial MP Joe Tripodi had been referred to
ICAC over allegations he told a former chief of NSW Maritime to create a $200,000
job, then recommended two Labor staffers for the role.
"On a day when another one of her colleagues is before the ICAC ... has Kristina
Keneally got the message, or will she continue her don't ask, don't tell approach
when it comes to allegations of misconduct, or corruption and other scandals within
her government?" Mr O'Farrell said.
Allegations against Wollongong Labor MP Noreen Hay relating to political donations
are also before the commission.