A Sydney councillor has been accused of offering a party colleague an $80,000 bribe on Christmas Day in exchange for power to determine Liberal party preselections.
The extraordinary allegation is contained in a police complaint and accompanying statutory declaration lodged this week and obtained by Fairfax Media.
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Factional turmoil in NSW Liberals
There is factional unrest and machinations within the New South Wales Liberal Party. Michael Koziol takes us behind the scenes.
The claim divides two political allies and long-serving Liberals in south-western Sydney: Andrew Nguyen, a retiree and prominent member of the Vietnamese community who was a Liberal candidate at the 2013 federal election and Paul Azzo, a former bodybuilder and Lamborghini-driving Fairfield councillor.
Mr Nguyen's complaint claims he agreed to meet Mr Azzo on Christmas Day at the Vy Vy Garden Cafe in Canley Vale.
The declaration alleges he was offered money and surety to relinquish control of a local branch he says was under his control and which held the balance of power for choosing candidates for Fairfield Council.Â
"[Mr Azzo] said that he was aware I was having some difficulty with my finances and offered me cash money to assist," the complaint reads. "Paul said words to the effect [of] 'Andrew do you want some cash money now, I can give you some now'."
The complaint alleges Mr Azzo then asked for his party colleague's bank account details and offered to send him his council salary for the next four years to assist with living expenses. Councillors are paid about $20,000 a year.
It is then alleged that Mr Azzo offered a bond to ensure Mr Nguyen that he would not be deposed from other positions in the party if he relinquished the branch.
"Paul said 'OK Andrew, I will put $200,000 into a trust account as security," the complaint reads. "Ask your daughter [âĤ a lawyer] to prepare a deed agreement for me to sign".
Mr Nguyen then alleges Mr Azzo then offered him work as project manager on home-building projects, an offer he declined citing his retirement and advanced age.
Mr Nguyen rejected the offers, the complaint says, and made the police report because of the example of former NSW opposition leader John Robertson who revealed he had been offered a bribe from slain businessman Michael McGurk but was later criticised for not reporting it.
When called by Fairfax Media Mr Azzo did not deny the meeting took place but when asked if he had offered a bribe said: "I can't talk party politics, goodbye".
In a later written response he denied the allegations saying they were "beyond belief".
"He is either delusional or a liar or both," Mr Azzo said. "If you print the allegations I will take action against you, your paper and Andrew Nguyen".
Liberal sources confirmed that the Edensor Park/Canley Vale branch is at the centre of a power struggle and party headquarters is currently investigating the validity of some of its recently joined members, a decision which could tip control in either man's favour.
"Andrew Nguyen does not control [the branch]," Mr Azzo said. "He holds the position of president of the branch courtesy of members of the branch who are aligned to me".
The branch's delegates could grant a majority on the Liberals' local government conference, a position that comes with power to select party candidates for three likely seats on the council.
The two men have worked together in the party's left faction for more than a decade.
Mr Nguyen, 78, is a retired building engineer who has served on state government boards, including on the south-western Sydney Area Health Service and the ethnic affairs advisory council.
He has been a party member for 20 years and twice served on the council but was not elected last year. He was a close friend of assassinated NSW MP John Newman and among the first to point the finger at the man who ordered his killing, former Fairfield councillor Phuong Ngo.
He mortgaged his house to pump an estimated $300,000 into his unsuccessful 2013 campaign for the seat of Fowler, which is believed to have caused him financial difficulty.
Mr Azzo is a first-term councillor and long-time party member; he is a former bodybuilder and drives a Lamborghini roadster.
He declined to comment about his business dealings but is a contact point for a local building company and was previously involved in a controversial sale of council assets.
A company on which Mr Azzo served as director won a 2004 tender to buy the Abbotsbury shopping centre from the council. The contract was later controversially transferred to a company run by Mr Azzo's brothers.
Mr Azzo is also director of DFO Campbelltown Pty Limited and Babylon Developments.
Mr Nguyen declined to comment.