Two Labor figures escape prosecution for hindering a corruption case
Two of the figures at the center of a years-long investigation into Labour’s scheme to circumvent charity laws will avoid prosecution over accusations they obstructed an inquiry on evidentiary and discretionary grounds.
Seven years after the Independent Anti-Corruption Commission’s Operation Aero investigation revealed senior figures in the NSW Labor Party laundered money from banned donors ahead of the 2015 state election, the three men at the center of the investigation have never faced charges.
reporter It could reveal that two of them – former NSW Labor MP Ernest Wong and Labor figure and restaurateur Jonathan Yee – will escape charges over allegations they obstructed the investigation and perverted the course of justice in the Wong case.
The two men will face lesser charges for allegedly giving misleading evidence to ICAC and false testimony from a witness, although ICAC said charges of obstructing the investigation would not proceed for “a mix of evidentiary and discretionary reasons”. They will appear in court next month.
The ICAC said it was still “awaiting further advice” from the Director of Public Prosecutions in relation to the third, former NSW Labor public relations director Kenrick Cheah.
Operation Aero, which focused on a seven-week investigation in 2019, heard NSW Labor figures used a string of straw donors to conceal the source of a $100,000 donation from billionaire property developer Huang Xiangmo to a Friends of China Labor fundraising dinner ahead of the 2015 election.
The inquest heard Xiangmo delivered $100,000 in cash in an Aldi plastic bag to former party boss Jamie Clements at the ALP headquarters in Sydney.
At the time, the ICAC found that Wong and Yee were the architects of the scheme and that Wong had engaged in “serious corrupt conduct” in doing so, as he was a member of parliament at the time. Cheah allegedly aided them by producing false documents and then lying about it to ICAC.
The revelation that the two men will not be charged with obstructing the investigation is the latest in a series of rapid developments in a case that has remained largely dormant since the ICAC published its final Operation Aero report in 2022.
Earlier this month, reporter The NSW Electoral Commission has reopened its investigation into a separate donations scandal linked to three men after a former Labor official, David Latham, alleged Premier Chris Minns was involved in evading donations laws over cash received at a separate fundraiser in Hurstville before the 2015 election.
The Prime Minister vehemently denied that the conversation took place at the time the allegation was made or that any wrongdoing had been made. reporter revealed the existence of the investigation.
The Electoral Commission is conducting a series of interviews regarding the fundraiser, including with Latham and Cheah, and has made four referrals to the DPP on the matter. Two of these were in late 2023 and two were in March and April of this year.
reporter This does not suggest the existence of an investigation or referral, but rather suggests any wrongdoing by Minns or any other Labor figure; It simply means that the commission investigated the allegations and passed information to the DPP.
A Hurstville fundraiser held at the Sunny Harbor Seafood Restaurant in 2014 was also brought up during the same ICAC investigation. At public hearings during Operation Aero, it was heard that both Wong and Yee were involved in concealing the source of nearly $10,000 in donations to Minns’ campaign.
But he not tracked by corruption watchdog. Scott Robertson, a consultant assisting the ICAC during the Aero, said his questions were not aimed at Minns’ behavior but instead aimed to “shed light on the behavior” of Wong, Yee and others.
While cases were ongoing against some bystanders involved in the scandal, Wong, Yee and Cheah were never prosecuted.
Next week, four people identified by ICAC as among the straw donors will appear in court. These include three workers at Emperor’s Garden Chinese restaurant, which Yee owns. The fourth is his mother. All four are accused of giving false or misleading evidence to ICAC during a public inquiry.
Jonathan Yee’s brother, Valentine Yee, pleaded guilty to giving false or misleading evidence to the ICAC in April.
Start your day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
