ClubsNSW threatens to try to force media to hand over emails with pokies whistleblower
New South Wales’ powerful club lobby is considering using the courts to force two journalists to hand over email communications they had with a poker machines whistleblower.
ClubsNSW is also demanding that the whistleblower, Troy Stolz, set aside $150,000 from the sale of his house on the Central Coast to cover its court costs.
Stolz said the attempt to force journalists from the ABC and the Sydney Morning Herald to hand over their correspondence with him is a “disgrace”, designed to cow the media into silence.
“It’s a public interest matter that affects all communities,” he told Guardian Australia. “It’s a national security issue. They are trying to silence the media from reporting on the truth.”
On Friday, ClubsNSW’s lawyers wrote to Stolz asking that he give the group access to an encrypted Protonmail account, which he used to communicate with the ABC journalist Steve Cannane and the Herald journalist Nick O’Malley.
The letter, sent by the law firm Thomson Geer, warned that ClubsNSW may compel the two media outlets to hand over their correspondence with Stolz.
“ClubsNSW is not only entitled to investigate the extent of Mr Stolz’s unauthorised disclosure of its confidential information, but to also recover any of its confidential information subject of such disclosure,” the letter states.
“ClubsNSW is presently considering invoking the court’s power to compel the Sydney Morning Herald and the Australian Broadcasting Corporation to produce their communications with Mr Stolz.”
Stolz has been given until 4pm on Tuesday to tell the lobby group whether he will “object to this course of action”.
In a statement to the Guardian, ClubsNSW said: “Mr Stolz has claimed that he is entitled to whistleblower protections in these proceedings. However, in ClubsNSW’s view, he has not made any whistleblowing disclosures under the law.”
Meanwhile, the Human Rights Law Centre has revealed it is in the early stages of setting up a dedicated whistleblower’s legal service, which would help whistleblowers who speak up in the public interest.
“Thanks to courageous individuals, we know about misconduct in our parliament, in our banks, at our government agencies and in our military,” an HRLC senior lawyer, Kieran Pender, said.
“But Australia’s whistleblowers are suffering. 80% of those who speak up suffer workplace retaliation. Some of Australia’s most high-profile whistleblowers are currently facing jail time for doing the right thing.”
Last year, Stolz blew the whistle on the failure to stop money laundering in pubs and clubs across NSW. Stolz was the anti-money laundering and counter-terrorism financing manager at ClubsNSW.
He has been locked in a series of overlapping court disputes with ClubsNSW since. Stolz lodged an unfair dismissal case after his employment was terminated, while ClubsNSW has alleged Stolz breached its confidentiality by disclosing internal information.
Guardian Australia reported last week that the federal court had ordered Stolz to hand over his communications with the independent MP Andrew Wilkie before Wilkie’s unsuccessful attempt to table a document in parliament showing that just 5% to 10% of NSW’s registered clubs were complying with anti-money laundering laws.
After the court decision, Wilkie warned he would “have a lot to say and do” about parliamentary privilege, which, in some cases protects correspondence with constituents.
On Tuesday, he requested that parliament consider intervening in the case, saying “if we don’t act no one will and parliamentary privilege will be eroded”.
Wilkie said there was a prima facie case that parliamentary privilege precluded ClubsNSW from using his office’s correspondence with Stolz.
“It is obviously important that the house protects itself against all acts or omissions which obstruct or impede the house in the performance of its functions, which is why I ask you to consider giving precedence to a motion to refer to the Committee of Privileges and Members Interests whether the parliament should intervene in this case to protect privilege,” Wilkie said in parliament.
The Speaker is considering the request.
The decision also financially crippled Stolz. Costs were awarded against him, and the whistleblower says his legal bill has now hit $600,000.
In a separate letter, Thomson Greer said it had become aware that Stolz had sold a home in Woongarrah. It told Stolz he must put $150,000 from the proceeds of that sale into an account controlled by his lawyers to cover ClubsNSW’s costs.
“In the event a satisfactory response is not received, or your clients refuse to provide the above requested undertaking, ClubsNSW expressly reserves the right to approach the court to seek asset preservation orders.”
Despite the mounting costs, Stolz said he would still have blown the whistle on something he saw to be in the public interest.
“I never anticipated I would be financially and reputationally ruined by reporting a crime to my employer, Asic and politicians,” Stolz told Guardian Australia. “It is a public interest matter and due to affording criminals the opportunity to use NSW Clubs
pokies as a vehicle to launder money obtained through organised crime, it’s a matter of national security.
“I would have still done it, regardless of the damage to my health, family and financially. The public, the community deserve better.”
A ClubsNSW spokesperson said it intended to enforce the costs order.
“Mr Stolz has admitted to providing USBs filled with these files to multiple third parties, which in ClubsNSW’s view breached the terms of his employment and his obligations as an employee,” the spokesperson said.
ClubsNSW said it had won on “every point” in the recent federal court judgment.
“His honour referred to some of Mr Stolz’s arguments as ‘ludicrous’,” the spokesperson said.
“The court also made an order that Mr and Mrs Stolz pay ClubsNSW’s legal costs, and the organisation intends to enforce this order.”
ClubsNSW also pointed out that a claim for parliamentary privilege over the Wilkie communications was withdrawn, and that Wilkie had not intervened in the case.