Photo: ADAM WRIGHT

GREENS MP Lee Rhiannon will seek legal advice on whether Shoalhaven City Council could face an Independent Commission Against Corruption (ICAC) investigation.

On Tuesday night Ms Rhiannon alleged in the NSW Parliament the collapsed Shoalhaven Independent newspaper provided in-kind donations for several candidates, including Greg Watson, in the 1999 local election.

Managing director of the newspaper, Trevor Kilner, was a candidate in the 1999 and 2004 elections and gave his first preference votes to Mr Watson.

The paper printed “regular prominent advertisements over the months preceding the 1999 election for Trevor Kilner, Greg Watson and another candidate, Peter Murphy”, Ms Rhiannon said.

“Despite multiple advertisements with many half-page advertisements, Mr Kilner’s newspaper advertising expenditure for this period was only $1000”.

“Neither Mr Watson nor Mr Murphy provided any details of expenditure of donation details for advertising in the Shoalhaven Independent.”

The company went into receivership in December 1999 owing $460,000.

“Creditors of this company, probably unknown to them, were in fact funding advertisements for certain candidates in the Shoalhaven local government election.”

Ms Rhiannon announced she would seek legal advice on whether ICAC should investigate the council.

Former employee Veronica Rawlinson was one of the many people who felt the financial

consequences.

At the time of the company’s collapse she had worked for two years and received no superannuation payments.

“I was owed nine weeks’ pay and no super had been paid during the entire time,” she said.

The trouble started long before the end, however, with many staff members going unpaid for up to a month at a time.

“We were given a cheque for the bank and we had to cash it. Sometimes we could not cash them, there was no money. It was embarrassing.

“We were cranky, because Trevor Kilner was still working as a teacher. We wanted to know why we couldn’t touch his personal assets.”

At the time Ms Rawlinson was married with children to support and was paying off a large mortgage on her husband’s income.

When the company folded she was left jobless for six months.

“My husband worked but we struggled because we had a big mortgage,” she said.

“The accusations seem pretty accurate. Good on Lee Rhiannon and I hope she follows it through.”

When approached by the Register on Wednesday, Mayor Watson refused to comment on anything to do with Ms Rhiannon.

However on Thursday morning he was interviewed on 2ST radio and commented openly on further claims made by Ms Rhiannon that more than $40,000 in printing costs for campaign material was unaccounted for during the 2004 election.

“The cost of the printing service provided would normally be approximately $45,000, but the amount reportedly paid to Haven Printing was just $2500,” Ms Rhiannon said.

The ownership of Haven Printing remained unclear, Ms Rhiannon said, as it was not registered with either the Department of Fair Trading or the Australian Securities and Investment Commission.

“But there is evidence that points to Haven Printing being a business controlled by Mayor Watson.”

Electoral material showed the address of Haven Printing to be the same as Save Money, a business owned by the Watson family company, and deliveries of printing supplies were addressed to Save Money.

Cr Watson denied any connection to Haven Printing and said the only donation he received was the volunteering

of time.

“I have nothing to do with Haven Printing,” he said. However he did admit to owning printing presses.

The Shoalhaven Independent News-paper issue was not discussed.