This article is from the Australian Property Journal archive
THE Australia Federal Police (AFP) has found no evidence of criminal activity in the federal government’s $33 million acquisition of western Sydney land from the billionaire Perich brothers that was subsequently valued at just $3 million.
The 12.26-hectare parcel of land in Bringelly, next to the future Western Sydney Airport in Badgerys Creek, had been acquired by the Department of Infrastructure in July 2018 from Tony and Ron Perich, with the property leased back to their Leppington Pastoral Company.
Nearly a year later it was valued at less than 10% of the $32.8 million transaction figure.
The deal was referred by the Auditor-General to the AFP in July last year, after the office “found information that we cannot explain and is suggestive that the Commonwealth may have been defrauded”.
The AFP said in a statement yesterday that its investigation considered offences including potential bribery of a Commonwealth official, conspiracy to defraud, and abuse of public office.
“The investigation did not identify any evidence of criminal offending by Commonwealth officials, or other people involved in the purchase,” the AFP said.
“The financial analysis undertaken as part of the investigation found no evidence of Commonwealth officials obtaining a personal benefit from the acquisition, or other persons receiving or paying corrupt payments.”
It said the investigation found that the purchase was in line with the requirements of the Lands Acquisition Act (1989), and was authorised by appropriate officials and authorities, and that no further action will be taken.
Along the way, the AFP investigated whether former New South Wales state MP Daryl Maguire was involved in the deal – he was cleared earlier this year – while the Australian National Audit Office executive director, Brian Boyd told a Senate Estimates hearing into the matter that the valuer, suggested by then-owner Leppington Pastoral Company, never actually went onto the property and instead “did a drive-by”.
An independent review commissioned by the Department of Infrastructure found federal officials were focused on maintaining a “positive relationship” with the Perich brothers, who are political party donors, including to the Liberal National Party.
The National Audit Office heavily criticised the Department in the review.
