Retired Rear Admiral Geoffrey Smith will probably face charges of misusing a company credit card for personal purposes, as well as lying to a government minister, following an investigation by the NSW Independent Commission Against Corruption (ICAC).

Charges recommended against him include misconduct while holding public office, using his position in that office for personal gain, and lying to the NSW Minister of Transport to conceal the abuse of his position. The evidence against him will be presented by ICAC to the NSW Director of Public Prosecutions in an evidentiary brief carrying recommendations regarding prosecution.

It’s a sordid event for a previously honourable officer, who served 37 years with the Royal Australian Navy and achieved the position of Maritime Commander. Rear Admiral Smith was in charge of the operation guarding against refugee boats for the Howard government during the child-overboard incident. In August 2006, he accepted the top position at Sydney Ferries with recompense of $320,000 p.a.

But it seems that wasn’t enough. Medical bills for his ailing wife, as well as the mortgage for his $1.86 million St. Ives home, seemingly put financial pressure on the admiral. One month into his Sydney Ferries post, he began charging personal purchases and costs on his corporate credit card, a pattern he allegedly followed for the next two and a half years.

He used the card for purchasing both luxuries and everyday goods—everything from groceries and housewares to perfume, wine, theatre tickets, and his son’s private school charges—with a total of roughly $237,000.

About $7,000 of the total seems to have been charged by his son, who was allowed to take the card with him to the Gold Coast during Schoolies Week.

Although Rear Admiral Smith claimed he didn’t know that constituted a misuse of the card, and that he intended to repay the money, those claims were rejected by the ICAC. The NSW anti-corruption agency pointed out that Rear Admiral Smith signed a form requesting the credit card, as well as Sydney Ferries’ procedures for credit card usage, both of which stipulated the card was for corporate purposes only.

He was also warned of the impropriety of such behaviour by no fewer than three financial officers attached to Sydney Ferries, all of whom testified against him.

In October 2008, Rear Admiral Smith sent a letter to NSW Transport Minister Campbell, stating Sydney Ferries’ credit card usage was fully compliant with government guidelines.

The report from ICAC states in part, “The commission is satisfied that Mr. Smith deliberately misrepresented Sydney Ferries’ use of corporate credit cards to the minister because he was aware his personal use of his corporate credit card was contrary to relevant policies, and he wanted to hide that fact from the minister.”

ICAC also recommended charges of offerring false or misleading testimony against Vincenzo Rossello, a former CFO of Sydney Ferries, as well as the application of internal auditing procedures for the company.

Source: theaustralian.news.com.au