Cheers! €2,000 bottle of wine costs Australian politician his job

The premier of New South Wales, Australia's largest state, has announced his resignation after giving false evidence to a corruption inquiry.

Barry O’Farrell told the Independent Commission Against Corruption (ICAC) yesterday he did not receive a vintage bottle of Penfolds Grange wine worth $3,000 (€2,027) from Nick Di Girolamo, a man described by the inquiry as an ‘’old-fashioned shyster fraudster’’ and a ‘’bare-faced liar’’.

“What I am certain about, if I received a 1959 bottle of Grange, I suspect if anybody received a vintage bottle of Grange they would have memory of it and if I had received it, I would have declared it … I am certain it didn’t happen,” Mr O’Farrell said.

But this morning, after Mr Di Girolamo produced a note sent by Mr O’Farrell thanking him for the wine sent three years ago, the premier announced he would resign as soon as he could arrange a meeting of Liberal Party MPs.

“I’ve accepted that I’ve had a massive memory fail. I still can’t explain either the arrival of the gift I have no recollection of, or its absence which I certainly still can’t fathom. But I accept the consequences in an orderly way. A new Liberal leader will be elected to take on the position of Premier of New South Wales,” said Mr O’Farrell.

“In no way did I seek to mislead wilfully or otherwise the ICAC, that would go against everything that I have, but this has been clearly been a significant memory fail on my part albeit within weeks coming into office but I accept the consequences of my actions.”

Mr Di Girolamo is being investigated for his part in alleged corruption at a company called Australian Water Holdings, which has ensnared politicians and political operatives from both the Liberal and Labor parties.

When he returned to the ICAC hearing after announcing his resignation, Mr O’Farrell was questioned by senior counsel Geoffrey Watson as to what might have become of the now infamous bottle of wine.

“Have you got any idea what could have happened to the wine?” he asked.

“No,” said Mr O’Farrell.

“It would be a very unusual bottle to open over a spag bol [spaghetti Bolognese] on a Friday night, you’d agree,” Mr Watson said.

“I cannot speculate,” Mr O’Farrell replied.

Grange - which until 1989 was called Grange Hermitage - is Australia’s best-known wine. Bottles routinely sell for thousands of dollars at auction.

Australia's prime minister Tony Abbott was so incensed when later asked about Mr O'Farrell that he lectured the media about its standards.

Nicola Berkovic of the Australian newspaper asked: ‘’Prime minister, do you trust this government, the state government, which is proving to be corrupt, to deliver your major infrastructure plans?’’

Mr Abbott gave her a deathly stare and replied: ‘’That, if I may say so, is an entirely unjustified smear.

‘’Let me not mince my words, madam. An entirely unjustified smear, and frankly I think you should withdraw that. There is no evidence whatsoever for that.’’

After demanding Ms Berkovic provide proof of her allegation, he said: ‘’We need to have decent standards in this country, we need to have decent standards from the media, if I may say so, as well as decent standards from politicians.”

Mr O’Farrell was due to welcome the British royal couple William and Kate and their baby George upon arrival at Sydney airport, but did not make it in the circumstance.