Phone taps played at an anti-corruption inquiry have suggested then premier Gladys Berejiklian gave $170 million to Wagga Base Hospital just hours after a complaint from secret boyfriend Daryl Maguire.
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Ms Berejiklian appeared for the first time on Friday at the Independent Commission Against Corruption (ICAC) since the watchdog expanded its investigation into Mr Maguire to include allegations against her.
ICAC announced earlier this month that it would investigate whether Ms Berejiklian breached public trust through her involvement in millions of dollars in grants for Wagga between 2012 and 2018 and failure to report any suspicions about Mr Maguire's conduct.
Ms Berejiklian resigned as NSW Premier and as a member of Parliament within an hour of ICAC expanding its inquiry.
On Friday, ICAC revealed Ms Berejiklian and Mr Maguire had multiple phone calls on May 16, 2018, just more than a month before the 2018-19 NSW budget was to be handed down, in which Mr Maguire complained about there being "no money for Wagga".
"Well I said [to Health Minister Brad Hazzard] 'you better f---ing make sure Wagga's got money otherwise there's gonna be a riot on your hands," Mr Maguire said in a call at 4.38pm.
"I'll deal with it ... I'll fix it," Ms Berejiklian replied.
Mr Maguire also complained there was "no money" for the new school in Estella. "I'm gonna have a f---ing terrible time at the election, just a terrible time," Mr Maguire said.
Just under two hours later, the pair spoke on the phone again and Ms Berejiklian told Mr Maguire she had spoken to then Treasurer Dominic Perrottet.
"I just spoke to Dom and I said put the $140 [million] in the budget. He goes no worries. He just does what I ask him to," Ms Berejiklian said.
"But it's meant to be $170 [million]," Mr Maguire replied.
"Whatever it is ... I said just put it in. He's putting it in whatever it is, OK," Ms Berejiklian said.
On paper, the subsequent 2018-19 NSW budget committed $20 million that financial year towards the previously announced $431 million Wagga Base Hospital Redevelopment major project.
The new school at Estella was mentioned in the budget but was not allocated any funding.
At Friday's hearing, counsel assisting ICAC Scott Robertson asked Ms Berejiklian if she had responded to Mr Maguire's complaints by taking "steps to have the budget papers changed".
"Not at all ... that would have been impossible to do unless the project was already ready to go, unless there'd been a lot of discussion within government already. You can't just add items in like that," Ms Berejiklian replied.
"There would have been a process behind that, and I envisage Mr Maguire was referring to that process ... from time to time, there are issues which have been progressed in government which, for one reason or another, have been omitted."
Mr Maguire complained again in the pre-budget call that the Tumut Hospital had been left out, and asked for $500,000 for planning to keep the project moving.
"I've got you the $170 million in five minutes. You can at least get a few hundred thousand from Brad [Hazzard] ... you can't have me fixing all the problems all the time," Ms Berejiklian replied.
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On Friday at ICAC, Ms Berejiklian said that she recalled "some announcement at the Tumut Hospital, if I'm not mistaken, during the byelection".
"But I don't recall anything before that."
ICAC was played audio from another call in which Ms Berejiklian discussed Mr Maguire's "money projects".
"It helps me too, the more you do [money for Wagga], the more easily we'll win the seat," Ms Berejiklian said.
Mr Robertson asked Ms Berejiklian if she wanted these projects to make it easier for Mr Maguire to retire at the 2019 election by helping the next Liberal candidate win Wagga.
"That is absolutely not the case. I reject it outright and I find it offensive," Ms Berejiklian said, denying they had a firm plan to make the relationship public when Mr Maguire retired.
Ms Berejiklian is due to continue giving evidence on Monday morning.
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