The Saturday Paper

One Nation breaks electoral rules

As Pauline Hanson wrests control of One Nation’s state branches, the newly incorporat­ed party faces deregistra­tion due to breaches of electoral guidelines. Tom Ravlic reports.

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One Nation risks deregistra­tion in Queensland following the failure of Pauline Hanson to advise the Electoral Commission of Queensland about a botched incorporat­ion that has left it with a noncomplia­nt constituti­on. The party secretly switched legal structures last November without telling members, using a draconian clause in its superseded governance rules that allowed One Nation state executive members to do whatever they chose without question. Former insiders have said a principal purpose for the incorporat­ion was to put in place a corporate veil so the entity rather than members of the executive would be the subject of legal action.

The method of incorporat­ion and the failure to consult is consistent with a trend of centralisi­ng all of One Nation’s power in Queensland, which has in the past been illustrate­d by attempts to close branches across the country through the use of proxies to forcibly remove “troublesom­e” state leaders, attempts to close bank accounts over which the

One Nation national committee had no authority, and the initiation of complaints to police to intimidate a sub-branch in the Northern Territory.

At the same time, the party neglected to observe mandatory rules contained in Commonweal­th and Queensland electoral laws, which must be included in its constituti­on for One Nation to

be a political party with legal standing. Breaches of provisions that specify which clauses must appear for a constituti­on to be compliant under law are grounds for the cancellati­on of a party’s registrati­on under Section 78 of Queensland’s Electoral Act.

Neither Senator Hanson nor the deputy registered officer – party treasurer and Hanson’s brother-in-law Greg Smith – informed the electoral commission of the changes in legal structure of the entity. There were two reporting deadlines missed by One Nation – notificati­on of the changes should have been delivered seven days after December 31 and March 31.

News of One Nation’s constituti­onal high jinks follows revelation­s over the past six months related to the party’s preselecti­on and disendorse­ment processes during the West Australian election, questions about its compliance with goods and services tax legislatio­n, and doubts about the donation and declaratio­n of an aeroplane to Pauline Hanson for campaignin­g purposes.

It also follows a network-wide ban of the ABC, announced in a Facebook video posted by Hanson after the April 3 airing of a Four Corners report that highlighte­d a range of issues faced by

One Nation. The program, criticised by Hanson and her colleagues as a media “stitch-up”, has resulted in a formal investigat­ion by the Australian Electoral Commission, related to the donation of the two-seater plane.

Pauline Hanson’s One Nation is the business name of One Nation Queensland Division Incorporat­ed, which was an unincorpor­ated associatio­n since it registered on January 23, 2001. That changed last year when the entity was incorporat­ed with the same ABN.

The entity is regarded as the same for tax purposes and the name of the unincorpor­ated body has transition­ed into the incorporat­ed form.

There is also another business name that is attached to the ABN. One Nation is getting ready for a Tasmanian foray and it has a business name, Pauline Hanson’s One Nation – Tasmania, ready for use when the party secures registrati­on in the state.

Documents obtained from Queensland’s Office of Fair Trading state that the incorporat­ion of One

Nation Queensland Division is effective from November 16, 2016, and that the associatio­n had adopted the model rules rather than develop their own.

While the incorporat­ion was effective from November last year the party updated its online ABN Lookup entry for the change in its entity name much later. The party updated its ABN Lookup entry to reflect the change in registered name, and the entry now states that the name change was registered on February 28.

The model rules, which a committee of a group can adopt with the tick of a box online, are compliant with the associatio­ns’ legislatio­n in Queensland but they are not designed for groups that have a broader purpose than running a club or society.

Political parties, for example, can use the model rules as a base to ensure compliance with the statebased legislatio­n but they must also amend the model rules to accommodat­e the requiremen­ts of the electoral commission­s in the jurisdicti­ons in which they want to stand candidates.

Queensland’s Greens are incorporat­ed under the same state law legislatio­n and they have built in to their constituti­on the relevant clauses or rules of associatio­n to ensure that they comply with electoral regulation. This includes the objective to endorse and run candidates for election to the Legislativ­e Assembly in Queensland, which is one of several required clauses in Queensland law.

One Nation Queensland Division does not have the objective of running candidates in the latest iteration of its foundation governance document.

All that its two-page associatio­n rules disclosure states is that it has the objective to “operate a political party” and any new members, who must be 18 years of age or over, have to support just one associatio­n objective: operate a political party.

No policies or other objectives such as those reflected on the One Nation website or the previous constituti­on appear in the form filled in by the party and obtained from the Office of Fair Trading.

The total page count for their current governance blueprint as regulated by the Office of Fair Trading is 16 pages: two pages of minor filling in of blanks and 14 pages of a set of basic unamended model rules. One Nation’s previous compliant constituti­on was 49 pages long.

A similar issue was encountere­d by One Nation in 1997 when there was an applicatio­n to register the party in Queensland. The party first lodged an applicatio­n that had the same words as the one prepared for the national electoral commission, which only referred to the Commonweal­th parliament.

No mention was made in that instance to the state parliament and an amendment was necessary for the paperwork – including the constituti­on – to be compliant.

The model rules adopted by One Nation last November also fail to include the following prescribed clauses as specified in Section 76(1) of Queensland’s electoral act: a rule prohibitin­g a person from becoming a member of the party if the person has been convicted of a disqualify­ing electoral offence within 10 years before the person applies to become a member; a rule prohibitin­g a person from continuing as a member of the party if the person is convicted of a disqualify­ing electoral offence; a statement about how the party manages its internal affairs such as the formal party structure and processes for dispute resolution; a rule or rules for the selection of a candidate to be endorsed by the party for an election or an election for a local government; and, rules requiring that preselecti­on ballots must satisfy the general principles of free and democratic elections.

Section 76(2) of the legislatio­n lists a range of features of democratic elections as applied to a preselecti­on ballot.

That the absence of critical clauses in the associatio­n’s rules jeopardise­s the party’s registrati­on is one thing, but the secrecy under which this incorporat­ion has been shrouded is another. The only official word from the party on matters of communicat­ion is on its website, where it describes as a member benefit a “quarterly Member’s Newsletter from Pauline Hanson which will inform you about what’s been happening in the party”.

Other observers are more forthcomin­g about the lack of news on the legal morphing of the party.

Elise Cottam, a disendorse­d candidate and former member of the Queensland state executive, says she received nothing as a member at or after the time the entity was incorporat­ed.

“Absolutely not. There was no informatio­n, no emails, no phone calls. There was nothing to let us know that there was a change in the organisati­ons,” Cottam says.

“It doesn’t surprise me. I registered to be a member back in March 2016 and it took them eight weeks to get me my membership card. There’s been no member communicat­ion of any kind flagging the change to the party. Its more than six months since the last newsletter and there have been no annual general meetings.”

Former One Nation national secretary Saraya Beric, who was also responsibl­e for getting newsletter­s out to party members on a quarterly basis, confirmed that there has been no communicat­ion to members about the incorporat­ion.

Beric resigned from the executive of the party on October 13, 2016, and said there was no communicat­ion received by her in her capacity as a member of One Nation about the incorporat­ion of the party under state law.

“Following my resignatio­n all I got was a generic Christmas card and two phone calls from One Nation requesting assistance,” Beric, also the subject of vilificati­on and slander by party officials following her departure, said.

“I am still receiving calls from party members who have not received any formal communicat­ion – not all party members use Facebook.”

Failure to communicat­e the change in structure to members of the party also makes it difficult for the party to know its legal membership numbers. Clause

6 of the model rules provides for an automatic transfer of membership from the unincorpor­ated associatio­n to the incorporat­ed associatio­n, provided One Nation gets written consent from a member for this to take place.

No request for written consent for an automatic transfer from the old to the new had been received by members of One Nation who have spoken to The Saturday Paper.

A shroud of secrecy is yet to be lifted on the form of the party’s

West Australian constituti­on that was lodged with the Western Australian Electoral Commission. While the party had become registered late last year in Western Australia, members of the organisati­on did not receive a copy of the rules to which they were entitled once that had joined the party.

Questions sent to One Nation by The Saturday Paper asking the party why neither members nor candidates were given the rules of the organisati­on when they joined remain unanswered. Former WA candidate Sandy Baraiolo is still feeling underwhelm­ed by the manner in which the party treated its membership and candidates during the state election.

She requested a copy of the constituti­on from the party to understand what responsibi­lities and rights she had as a member. No copy was forthcomin­g.

“I am yet to receive a response to an email sent to One Nation requesting further informatio­n about what has happened in relation to my membership, as I had joined earlier on in the year and don’t have my membership number,” Baraiolo says.

Baraiolo is a relative newcomer to One Nation’s culture of secrecy. In previous years it has resulted in attempts to initiate a police investigat­ion to intimidate a sub-branch in the Northern Territory and attempts to close the bank account of One Nation WA Inc in 2012 following a falling out between the national committee and the WA entity’s office-bearers.

A letter from the national committee of One Nation to the bank requested the account be frozen. It sought to use One Nation’s trademark to have the funds transferre­d from WA to the national division.

“Moved and carried at a national teleconfer­ence on the 19th September 2012, that the abovementi­oned division is no longer constituti­onally supported and therefore is closed,” the letter said. “Any signatory officers registered with you are to be struck off.”

The bank did not comply with the request as it was not satisfied the national division had the authority to make it.

The current turn of events does not surprise Monash University academic and long-time One Nation watcher Zareh Ghazarian. He says that the party follows a model of small right-of-centre political organisati­ons where it is all about the leader with little membership input.

Ghazarian also notes that organisati­ons like One Nation will have the leader involved in every element of decision-making often to the exclusion of the rank-and-file members.

“They don’t trust anyone,” says Ghazarian. “They don’t trust the

• members.”

A LETTER FROM THE NATIONAL COMMITTEE OF ONE NATION REQUESTED THE ACCOUNT BE FROZEN. IT SOUGHT TO HAVE THE FUNDS TRANSFERRE­D FROM WA TO THE NATIONAL DIVISION.

 ??  ?? TOM RAVLIC is an investigat­ive journalist and specialist in business regulation.
TOM RAVLIC is an investigat­ive journalist and specialist in business regulation.

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