Iemma Seeks Icac Advice On New Hay Claims

Sydney Morning Herald

Saturday July 26, 2008

Andrew Clennell State Political Editor

THE fallout from the Wollongong City Council scandal revisited the Premier, Morris Iemma, yesterday, forcing him to seek fresh advice from the Independent Commission Against Corruption over allegations involving the Labor MP Noreen Hay.

Ms Hay, the MP for Wollon-gong, was accused yesterday of lying in public statements she has made about lobbying local councillors on behalf of the corrupt developer Frank Vellar.

The Opposition called for Ms Hay to be stood down as parliamentary secretary to the health minister after it was revealed she and Mr Vellar met a councillor, Frank Gigliotti, when Mr Vellar asked him to put a recision motion to the council to get a project of Mr Vellar's passed last year.

Mr Iemma's office said it would seek fresh advice from the commission on the revelations, published the Illawarra Mercury. Ms Hay told ABC TV's Four Corners on April 14 that her relationship with Mr Vellar was not special and it was the same as "100 other phone calls" when she agreed to make the odd lobbying phone call for the developer.

She said she had met opponents of a project Mr Vellar was trying to get passed, the development of the North Beach Bathers' Pavilion, and attended protest meetings.

But Mr Gigliotti has revealed the meeting at Ms Hay's office in a statutory declaration, alleging Mr Vellar, a big donor to Ms Hay, attempted to get him to rescind a council decision not to spend $600,000 on the development.

Mr Gigliotti refused, according to his statement, and was then asked to phone his colleague, Val Zanotto, to ask him to move a recision motion, but Mr Zanotto also refused.

"I felt a lot of pressure because of Noreen's influence in the ALP," Mr Gigliotti said in his statement.

In May ICAC found Mr Vellar had acted corruptly. He faces the prospect of criminal charges.

Mr Gigliotti was also named adversely at ICAC after he admitted giving a case of whisky to a conman, Ray Younan, believing he was an ICAC official.

Ms Hay did not return calls to the Herald but did not deny the meeting to the Mercury.

Mr Gigliotti's allegations are reported to have been referred to ICAC but never emerged in public hearings on the matter.

© 2008 Sydney Morning Herald

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