news.smh.com.au
The NSW Crime Commission asked its own forensic accountant to prepare documents for a public inquiry into allegations he helped secure clients for his solicitor girlfriend.
The Crime Commission knew about the relationship between the two, and when it told the accountant he was being investigated, he resigned without asking why.
Lou Novakovic appeared on Monday before the Police Integrity Commission (PIC) in Sydney, which is investigating allegations of misconduct in the way the Crime Commission seized millions of dollars from underworld figures.
Advertisement: Story continues below
Counsel assisting the inquiry Jeremy Gormly SC questioned Mr Novakovic throughout the morning but was unaware the witness had assisted the Crime Commission in supplying information to the PIC."I work for the Crime Commission and I was asked to do it," Mr Novakovic told the inquiry.
He also said he only learned about the investigation two months ago and was unaware of the specific allegations against him when management informed him on September 2 that he would be suspended from his job with pay.
Mr Novakovic submitted his resignation the same day.
PIC acting commissioner Jerrold Cripps QC asked how a 14-year veteran of the Crime Commission could quit without question.
"You didn't ask what it was that you had done wrong?" he asked, to which Mr Novakovic replied, "No."
"Is that because you knew you had done something wrong?" Mr Cripps asked.
Mr Novakovic replied, "No."
He said he quit because the investigation would inhibit his ability to perform his job at the commission.
The inquiry is examining the role of Mr Novakovic, who had oversight of millions of dollars of asset seizures, and how his girlfriend Salina Sadiq came to represent a number of defendants fighting the commission between 2005 and 2008, as well as how much she was paid.
Mr Novakovic acted as her accountant, banked cheques from Crime Commission cases and loaned Ms Sadiq amounts totalling $100,000, which she still owes him.
He told the inquiry he didn't know the cheques were from the Crime Commission.
Mr Novakovic said he made it a rule not to attend social functions with Ms Sadiq's clients in China and Sydney but he conceded "there have been some exceptions".
The Crime Commission can quarantine money and assets suspected of being the proceeds of crime.
The PIC is investigating at least four matters that involved Ms Sadiq and the seizure of millions of dollars.
She was paid legal fees between $70,000 and $80,000 to represent the accused in two of the matters.
The funds were extracted from the seized money and by consent of the accused under the guidelines of the Criminal Assets Recovery Act 1990.
None of the cases went to trial, and the PIC has alleged Ms Sadiq's legal services did not justify the amounts she received.
Ms Sadiq gave evidence on Monday to the PIC that she had never dealt with any Crime Commission matter that involved Mr Novakovic.
"He won't tell me much about his work," she said.
The hearing continues on Tuesday.
