Jeff Kennett

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JEFF KENNETT

PREMIER OF VICTORIA

CRIMINAL

CRIME, CORRUPTION, OTHER ILLEGAL DEALINGS

While the Kennett (Victoria - Australia) Government has made it knownthrough the mainstream media (which he appears to control) that it has anallegedly hard-line on law enforcement and integrity issues including so-called 'zero-tolerance' for many kinds of crimes, to some observers, JeffKennett appears to be exempt from all this.

In 1993, Kennett and his wife were exposed as having used a government

car to conduct private business for the advertising agency, KNF owned byKennett and wife Felicity. Under normal circumstances such isn't allowed,but it goes without saying that Kennett wasn't punished or fined in any wayfor doing so. A further conflict of interest was that highly lucrativegovernment contracts were being awarded to KNF, possibly in violation ofcorrect procedures.

He was also revealed to have been selling liquor without a State Governmentissued liquor licence. He was able to escape criminal charges, which hadthey been pursued could have landed him in jail.

On 29 May 1996, Kennett assaulted a number of journalists by shovellingdirt on them and their cameras at a City-Link ground breaking ceremony.After attacking the journalists he said 'which will be the first one to chargeme with assault'. It is perhaps notable that the usual responsibility for suchcharges rests with the state Police. That the Police did not charge Kennett,even though the assault was televised may have something to do with hisbacking them in refusing to hold a Royal Commission into the force, in spiteof repeated cases ofVictoria Police Corruptionat the highest levels.

On January 3 1996, Kennett was able to avoid being charged for driving 143

km in a 100 km zone on the Hamilton Highway, near Lismore, WesternVictoria. Normally, the minimum penalty for such an offence in Victoria isautomatic licence suspension and a hefty fine. Jail is also an alternative.Kennett got no licence suspension - the Police refused to charge him. It hassince been revealed that another man, a publican at Colac, was pulled overfor allegedly doing 133 km in the same area. The Police officer refused to usehis discretion to drop the alleged speed by a mere 3 km to allow him to keephis licence. In yet another case, Mr. Clive Goodenough was taken to courtfor doing more than 30 km over the limit. He was jailed for two monthsfollowing an ex-parte hearing. There he was bashed and raped. Kennettrefused his application to have the case reopened.
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Protection of unethical and/or illegal/criminal activity by Police and othersof Kennett appears to go beyond himself and seems to extend to his family.In December 1995, Kennett confirmed that his children had been involved inthe illegal drug trade by smoking marijuana and yet they too have escapedcharges. Currently Victorian prisons are full of others who have similarly

used drugs.

Kennett also made comments on the Ray Martin Show(Channel 9) about arape trial still in progress that was evidently in contempt of court. Again hewas not charged. After making these statements, Kennett used taxpayer'sfunds for lawyers in a bid to avoid being charged.

Kennett's use of taxpayer's funds for his own purposes and to gaginvestigation seems to be a common trait of government in Victoria. Hesuccessfully sued Packer for an estimated $400,000 in an out of courtsettlement for a broadcast few can remember. As a rule, defamation actionsby Politicians are funded by the taxpayer, and in the event that they win, thepayout goes in the pocket of the politician. In the event that the politicianloses the case, the taxpayer picks up the tab. In other words, defamation isa no-lose lottery for Victorian State Politicians.

More recently Kennett was accused on 4 Corners(ABC-TV) of using undueinfluence to gain shares in his wife's name in a company (Arthur Yates andCo.) after it was announced that the share offer had formally closed. Hesubsequently made a substantial paper profit.

In a separate incident, Kennett entertained representatives of theGuangdong Corporation - one of the directors of which is the biggest pokermachine operator in Victoria. He accepted an invitation to buy highly soughtafter shares in the company (again in his wife's name) at about the sametime his Government released another 5000 Poker machines onto themarket.

Again in relation to Kennett's share dealings; it was revealed he was on theMayne Nickless share register when a State Government contract wasawarded to a consortium involving the company. In spite of the fact thatKennett bought the shares in February 1992, he failed to disclose hisinterests in the September 1992, Parliamentary register. Under normalcircumstances, "wilful contravention" of theMembers of Parliament (Registerof Interests) Act, is punishable by fines of up to $2,000.

Kennett's actions in relation to other matters have also come under fire,including alleged breaches of confidentiality in the tendering process for the2 Billion Dollar Crown Casino (possibly in violation of state laws), and thesubsequent allowing of the successful tenderer, to have extra gaming tablesat reduced rates. Notable is how the winning tenderers, including seniorexecutives Lloyd Williams and Ron Walker, appear to be close personal

friends and/or associates of Kennett. The Senate (Federal Government)looked into this, but the inquiry was apparently sabotaged because potential
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witnesses were fearful of reprisals should they give evidence unfavourable toKennett and/or others with close links to the State Government. On relatedmatters, the Casino appears to be allowed to have more than the usual foursigns on roads directing motorists to it (a legal restriction on all otherbusinesses) and appears to have sought and received tax

breaks/concessions far over and above those obtained by most, if not allother businesses in Victoria. It has been alleged that Kennett has resorted toallowing the State Government to be used to prop up businesses of friendsand political allies (line their pockets) at the expense of other Victorianbusinesses to create an unlevel commercial playing field in the state.Another apparent infraction by the Crown Casino was their running alottery without a permit. In spite of this illegal activity, there is absolutely nodoubt that the Casino operators or their casino will have their business inany way interrupted. If an ordinary citizen of Victoria attempted the samething (running a lottery without a permit) a likely result would be jail.

Crown Casino also came under fire for giving a highly lucrative"sponsorship" for activities involving one of Kennett's sons.

Kennett's role in the tendering process for another lucrative governmentdeal, the "transurban" tollway system, called City Link has also come underserious speculation. Again questions about the tendering process have notbeen adequately answered by Kennett. His excuse has been "commercialconfidentiality". However because these are Government contracts involvingtaxpayer's funds, the "commercial confidentiality" clause doesn't hold water.That this could be due to corruption in the tendering processes cannot be

discounted. For example it was recently revealed that the alleged tenderingprocess of some lucrative Vicroads road construction contracts were beingperverted to allow favoured parties to get the contracts, which some say area licence to print money.

The State government privatisation and sell offs of other assets has comeunder strong fire on the basis of political opposition. This is not of concernto AAC unless it involves issues of probity. However these issues have beenraised in terms of a certain USA-based private prison operator, namelyWakenhut Corp. and other buyers of State assets. Kennett has refused toallow any proper independent investigation of these matters, again on thealleged basis of "commercial confidentiality". However corruption mattersand those involved in legal infractions by companies and/or their directors(in Australia and/or elsewhere) have nothing to do with "commercialconfidentiality" but rather whether the given group is fit and proper to beissued a government contract and/or funds in the first instance - issuesthat are unresolved and therefore a matter of serious question.

So-called government "watchdogs" such as the State Ombudsman'sDepartment, Auditor general and FOI Laws have all been perverted toprevent the public from finding out details about alleged and/or possible

corruption in the Kennett government. A concerted effort to find out aboutone of the State Government "licences to print money" failed on November 6,


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1997. An FOI claim was rejected by the government and it's rubber stampthe Administrative Appeals Tribunal (AAT), (refer toThe Hoser Filesfor achapter that details the charade of the AAT). The FOI claim sought detailsabout a $24 million dollar payment to Troughton, Swier and Associates. Thepayment (described by some as a "gift"), was made in relation to what the

Government labelled a so-called "energy consultancy" by Kennett and histreasurer, Alan Stockdale. In violation of government protocol, no publictender had been called before the so-called "energy consultancy" or paymentwas made. Attempts by public interest groups to find out details about thematter have been wilfully sabotaged by Kennett's government.

It has been said, that the private enterprise system in Victoria has now beensuperseded by a system based on patronage and corruption akin to that ofthe Bjelkie Peterson years in Queensland or the Wran/Unsworth years inNSW or even that of the Suharto regime in Indonesia, whereby only the

politically well connected can make large amounts of money and effectivelycontrol all key sectors of the economy. No doubt more facts will becomeclear over time although this may be some years and after Kennett leavesthe political scene. Finally it should be noted that Government corruption inthe state of Victoria did not start the day Jeff Kennett became State leader.However what is clear is that there has been no effort to reduce thiscorruption and all obvious indicators show that it appears to have increasedmarkedly since his coming to Government in late 1992.

Kennett's wife also went on a taxpayer funding spending binge with herState Government issued Visa credit card. Among her many purchases was

a pair of $315 sunglasses from Optika Tarasoudis in Greece in September1995. When asked by the media why Felicity Kennett had used taxpayer'sfunds for her own indulgence, Mr. Kennett stated on 20/11/97 that his wifehad used the Visa card as the shop had not accepted American Express,which was another card his wife had. The (routine?) falsity of Kennett'sstatement was shown by the rebuttal by shop manager Andreas Tarassoudisthe next day when he said that his shop had been accepting AmericanExpress for about ten years. Perhaps of greater significance is the simple actof issuing Mrs Kennett with a taxpayer funded credit card in the firstinstance. In at least five other states, no spouses of leaders are issuedtaxpayer funded credit cards. NSW Premier Bob Carr told the media thatthere was no reason why the taxpayer should pay the expenses of his wife.

Kennett's wife accepted as a "gift', free use of a BMW allegedly as part of aso-called "promotion' for the company.

In February 1998, when Kennett officially announced his separation fromwife Felicity, he deceitfully blamed the media for the separation. This isironic as Kennett, perhaps more than any other previous Victorian Stateleader has manipulated the media to suit his own interests more thananyone else. He has even gone so far as to ring newspaper editors

themselves and tell them what he thinks should and should not be reported,in what is clearly a breach of accepted protocol. The ever present threat of


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defamation actions against journalists who dare question some of hisactivities, as well as the ever-present threat on newspapers and TVbroadcasters to withdraw State Government advertising has further ensureda consistent pro-Kennett line has been run by the mainstream media - a linewhich deliberately and forcibly suppresses public knowledge of corruption

involving the Kennett government as well as other irregularities.

For several years there have been repeated rumours of Kennett assaultinghis wife. These rumours have been denied by both Jeff and Felicity. Once aLabor MP spoke to Felicity Kennett in the State Parliament House foyer andshe performed a little dance and said "See. No bruises!".

There is substantially more coverage of Kennett's questionable activities in

chapters 36-41 of the bookVictoria Police Corruption that was released in

July 1999.

Written By: Australians against Corruption

Jeff Kennett

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