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CORRUPTION AND CRIME COMMISSION OF WESTERN AUSTRALIA COMMISSIONER JOHN McKECHNIE QC TRANSCRIPT OF PROCEEDINGS AT PERTH ON WEDNESDAY, 16 NOVEMBER 2016, AT 9.33 AM COUNSEL: MR A. POWER MS T. CHUNG WITNESS: JENNIFER ANNE KOX STEPHEN JOHN KOX AFFIRMED AT 11.59 AM

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KOX, JENNIFER ANNE recalled: 1 2 THE COMMISSIONER: Please be seated. When you’re ready, 3 Mr Power? 4 5 POWER, MR: Thank you, commissioner. Madam Associate, 6 would you please bring up document number 0941^. 7 8 Ms Kox, I am now showing you on the screen in front of you 9 a leave application form and you can see from the top of it 10 that it is an application form in respect of your husband 11 Stephen. Do you see that?---Yes. 12 13 You can see from about the middle of what is on the screen 14 in front of you that it is for a period from 12 April 2013 15 to 15 April 2013. Do you also see that?---Yes. 16 17 If you look then down towards the middle of the page – just 18 scroll down a little for me please, Madam Associate, thank 19 you – you can see that it is for a period - it appears to 20 be for a period of two working days’ annual leave. Do you 21 see that?---Yes. 22 23 Then towards the bottom of what is on the screen in front 24 of you at the moment there is a continuous line and 25 underneath that are the words “Employee’s signature and 26 date." Is that your husband’s signature?---Yes, it is. 27 28 To the left of the date, 2/4/13?---Yes. 29 30 Then if we go down to the box with the heading number 2 and 31 Recommendation, you can see this is obviously where the 32 supervisor is to complete the recommendation. You can see 33 a tick or rather a cross to the left of the words “Leave 34 recommended,” meaning the supervisor has recommended the 35 leave applied for. Is that right?---Normally, yes. 36 37 Yes; and then underneath that, above the line for the 38 supervisor’s signature, there is a signature. Whose is 39 that?---Stephen Kox’s. 40 41 At this time you were his supervisor, weren’t you?---Yes. 42 43 If we then go to the right of that you can see your 44 husband’s name above the words “Supervisor’s name” and a 45 date of 2 April 2013. So this would appear on the face of 46 it to be a leave application form where your husband has 47 approved his own annual leave. Would you accept that? 48 ---Yes. 49 50 Please take that down, Madam Associate, and would you then 51 please put up document number 0940^. 52 53 I’m now showing you another leave application form and you 54 can see from the top part of this form that this is another 55 leave application form for your husband. Do you see that? 56 ---Yes. 57 58

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You can see from about what is on the middle of the screen 1 in front of you that this is for leave starting on 6 August 2 2013 for one day’s annual leave. Do you agree with that? 3 ---Yes. 4 5 If we then scroll down to the middle of that page you see 6 your husband’s signature above the words “Employee 7 signature and date”?---I do. 8 9 Above that you can see a notation in handwriting which 10 appears to indicate that the period of leave was 11 6.5 hours?---Yes. 12 13 Is that the correct way to read that?---Yes. 14 15 And then we go down to the box “Recommendation” at the 16 bottom of the screen which you have up in front of you at 17 the moment, and you can see that leave has been recommended 18 because the box next to those words, to the left of those 19 words, has been ticked?---Yep. 20 21 Then underneath that there is a signature. Whose signature 22 is that?---Stephen’s. 23 24 If you go to the right you can see the date is 7 August 25 2013?---Yep. 26 27 So on the face of it, this would appear to be an 28 application for leave on 6 August which was recommended for 29 approval by Mr Kox, your husband?---Yes. 30 31 A day after he took it?---Yep. 32 33 Do you see any potential for abuse when this sort of thing 34 happens?---I’ve not – not been aware that this was 35 happening so if it was - - - 36 37 Do you see any potential for abuse when this sort of thing 38 happens?---Yep, potentially. 39 40 What do you think that abuse might be?---Taking leave 41 without the prior approved recommendation, without the 42 approval of the supervisor. 43 44 Sorry, your voice is dropping. Did you say, and tell me if 45 you didn’t - - - 46 47 THE COMMISSIONER: Maybe repeat what you said?---Taking 48 leave without the approval of a supervisor. 49 50 POWER, MR: Thank you. Could you take that document down 51 please, Madam Associate and would you then please put up 52 document number 0939^. 53 54 This is another leave application form for your husband. 55 You can see that from the top of what’s on the screen in 56 front of you, can’t you?---Yep. 57 58

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And you can see this time it’s for a period beginning on 1 22 July 2013 to 23 July 2013, so a period of one day’s 2 annual leave?---Yes. 3 4 If you look down towards the middle of the page – thank 5 you, Madam Associate, scroll down, thank you – you can see 6 what appears to be your husband’s signature above Employee 7 Signature and Date. Is that correct?---Correct. 8 9 And then down in the next box, Recommendation, which is 10 where you were meant to sign and put your name. Is that 11 right?---Yes. 12 13 Instead, starting from the left to the right, you have a 14 cross recommending leave, and then underneath that you have 15 your husband’s signature?---Yes. 16 17 And to the right of that, where the supervisor’s name is 18 meant to appear you have another signature. Whose is 19 that?---That’s Stephen’s. 20 21 Do you know why he wouldn’t have written his name there? 22 ---No. 23 24 Did you discuss this application for leave with him before 25 he completed this form?---I would have said that - - - 26 27 Do you recall that discussion?---I cannot recall; I don’t 28 recall, no. 29 30 Apart from this form, which is in front of you at the 31 moment - - -?---Yes. 32 33 - - - do you know if there is any other record of you 34 approving his leave?---I don’t know. 35 36 In respect of all of the other forms I’ve showed you where 37 he has applied for annual leave - - -?---Yes. 38 39 - - - do you know if there’s any other record of those 40 applications for leave?---I don’t know. 41 42 When you say you don’t know, are you in fact saying to the 43 commissioner that there probably are not?---I don’t know. 44 45 Would you take that down please, Madam Associate. Would 46 you please put up document number 0938^. 47 48 I’m showing you yet another leave application form, 49 Mrs Kox, and this one again is for your husband, and you 50 can see from what is in front of you on the screen that 51 this is for a period of leave from 26 December 2013, so 52 from Boxing Day, to 3 January the next year. You can see 53 that?---Yes. 54 55 If you look at the middle of the page, you can again see – 56 scroll down please, Madam Associate – above the heading 57 Employee Signature and Date, your husband’s signature date 58

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opposite the date 6/1/14. Do you see that?---Yes. 1 2 And if we go then down to the recommendation box you can 3 see again this is a box which should have been completed by 4 you and signed by you, but it appears to have been 5 completed by your husband. Do you agree with that?---Yes. 6 7 This is yet another example of where he has retrospectively 8 approved leave for himself, isn’t it?---It appears so, yes. 9 10 And again, this is an example of where there is a potential 11 for abuse by the person approving leave for himself, isn’t 12 it?---I’m not sure, yeah. I'm not sure, yes. 13 14 THE COMMISSIONER: The whole purpose of having someone 15 else approve the leave is to avoid a potential of any abuse 16 isn't it?---Yes. 17 18 And this isn't what is occurring here?---Correct. 19 20 POWER, MR: Madam Associate, would you please take that 21 document down and would you please put up document 22 number 0936^. 23 24 You can see that what is in front of you at the moment on 25 the screen, Ms Kox, is another leave application form for 26 your husband, this time for a period of one day's annual 27 leave on 28 February 2014. Can you see that?---Yes. 28 29 And you see from the middle of the page – when 30 Madam Associate scrolls down to the middle of the page – 31 that it's for a period of 7.5 hours. I want you now to 32 look at the box with the number 2 and the word 33 "recommendation" in it?---Yes. 34 35 And you can see from that that this is another example of 36 where your husband has approved or at least recommended the 37 approval of leave for himself after the event, isn't it? 38 ---Can we just scroll up a bit please? 39 40 Yes, of course?---Yes, it appears so. 41 42 Would you take that document down please, Madam Associate? 43 Madam Associate, would you please put up document 44 number 0946^? 45 46 What you're looking at is a leave application form for your 47 husband, this time for the period from 24 August 2015 to 48 1 September 2015. Do you see that?---Yes. 49 50 A period of seven annual days – sorry, a period of 51 seven days' annual leave was being approved here, wasn't 52 it? 53 ---Yes. 54 55 If we go down to the recommendations box, this time we see 56 a signature at the front of that box. That's yours, is 57 it?---Yes, it is. 58

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1 Your name appears behind it and this time the leave appears 2 to have been approved on 25 July 2015?---Yes. 3 4 Is there any reason why in the time that you have been 5 supervising your husband in his role as the airport 6 manager, you could not have asked someone else to sign his 7 leave application forms and approve them or not approve 8 them?---That is my role as his supervisor. 9 10 Yes, but is there not any reason why you could not have got 11 someone else to do it like, for example, the executive 12 manager of corporate services?---That's not the policy. 13 14 Would you answer my question please?---Sorry, can you 15 repeat it please? 16 17 Yes, I will?---Thank you. 18 19 Is there any reason why you could not have got someone else 20 to have considered and approved his leave or not approved 21 it, like the executive manager of corporate services? 22 ---Yes, I could. 23 24 If that had happened, that would have avoided any 25 perception of bias or conflict of interest, wouldn't it? 26 ---Yes. 27 28 There's no operational reason why that couldn't have 29 happened, was there?---It's not the process of council. 30 31 You're still not answering my question?---No. 32 33 There's no operational reason, is there?---There's not, 34 other than we work in different locations. 35 36 Yes, and if need be you could speak to Ms O'Toole and you 37 could explain to her whether it suited the operational 38 needs at the airport or not. Am I right?---Yes. 39 40 And so there's no operational reason why she could not have 41 considered and approved or not approved his leave. Am I 42 right?---Yes. 43 44 Madam Associate, would you please take that down and please 45 put up document number 0945^? Just take a moment to read 46 that to yourself and tell me when you have done that? 47 ---Yes. 48 49 Madam Associate, would you please show the bottom half of 50 that page and the balance of the page when Ms Kox has 51 finished reading it?---Yes, thank you. 52 53 This is yet another example of an annual leave application 54 form that could have been, if necessary, signed off by the 55 executive manager corporate services, am I right?---Yes. 56 57 Thank you, Madam Associate, would you please take that 58

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down. Commissioner, may I move to a different matter? 1 Thank you. 2 3 THE COMMISSIONER: The leave that was approved by Stephen 4 Kox that he took, that you’ve been shown, were you aware on 5 any or some of those days that he was not at work?---Yes, I 6 would have been aware he was not at work. 7 8 Did it cross your mind as to wonder why you had not seen a 9 leave form?---I can’t recall. 10 11 POWER, MR: Thank you, commissioner. 12 13 I want to ask you some questions now about an Australian 14 Airports Association National Conference?---Yes? 15 16 You have a role with that association, don’t you?---I do. 17 18 You attended the Australian Airports Association National 19 Conference on the Gold Coast in 2014, didn’t you?---I did. 20 21 Who did you go with?---Who attended as well from the shire? 22 23 Who did you go with?---I was there and Steve attended 24 and - - - 25 26 Your husband?---My husband, yes, as an – yep, and Bill 27 Price attended. 28 29 Just the three of you?---And Bill’s wife was there but not 30 attending the conference. 31 32 That conference took place in November didn’t it?---Yes. 33 34 Madam Associate, would you please bring up document 35 number 0385^ and would you please go to page number 2. 36 37 What I’m now showing you is an email which might refresh 38 your memory about certain aspects of this conference. You 39 can see from the header to this email that it is from 40 Rhiannon Clarke of AOM Events to you?---Yes. 41 42 You can see it was sent to you on 23 May 2014 and received, 43 obviously allowing for the time difference between east 44 coast and west coast, not long after it was sent?---Yes. 45 46 You can see the subject matter of this email is the 47 confirmation of accommodation?---Yes. 48 49 If you look down towards the middle of what is in front of 50 you at the moment, you can see that it is in effect a 51 confirmation to you about your accommodation at this 52 conference that I’ve asked you some questions about isn’t 53 it? You can see that?---If I can see further down 54 the - - - 55 56 You may, of course?---Yes. 57 58

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Madam Associate, would you go to page number 3, the next 1 page please, and would you scroll down, thank you. 2 3 You’re welcome to look at the whole of this page if you 4 need to, Ms Kox, but the proposition I’m putting to you is 5 that this email which comes to you and as you would recall 6 from what I took you to earlier, on 23 May, is in effect 7 informing you that you have booked for you some 8 accommodation at the Jupiters Hotel for this conference 9 where you have a superior room from Saturday, November 22 10 to Thursday, November 27?---Yes. 11 12 You accept that?---Yes. 13 14 You can see if we go further down the page that the daily 15 room rate is $199?---Yes. 16 17 If we could scroll further down the page, Madam Associate, 18 you can see the total of accommodation for that number of 19 days was $995?---Yes. 20 21 That was paid for by the Shire of Exmouth wasn’t it?---Not 22 at that time, but yes. 23 24 Madam Associate, would you then go to page number 6, this 25 is an Australian Airports Association National Conference 26 2014 tax invoice?---Yes. 27 28 You see it’s addressed to you?---Yes. 29 30 It’s dated 23 May 2014 so the same date as the email I took 31 you to a moment ago?---Yes. 32 33 It’s an invoice for the $995 accommodation cost isn’t it? 34 ---Yes. 35 36 Thank you, Madam Associate, would you please take that 37 document down and would you then put up document 38 number 0388^ and would you go to the second page of that 39 document please. 40 41 I’m now showing you an email with the heading Accommodation 42 Confirmation. You can see from the header that it is from 43 Rhiannon Clarke to you and it’s dated 30 July 2014, so over 44 two months after the one I took you to a moment ago?---Yes. 45 46 Again it speaks in the couple of lines down from the header 47 of accommodation confirmation. Do you see that?---Yes. 48 49 Do you need to read the rest of the email? You’re welcome 50 to if you wish?---No, that’s fine. 51 52 Would you then go to page number 3 please, Madam Associate, 53 and just pause there. Thank you. 54 55 You can see now this is an email where you’re being advised 56 that you have accommodation from the Saturday, 22 November 57 2014 to Friday, 28 November 2014?---Yes. 58

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1 So unlike the previous accommodation confirmation, this one 2 two months later is now telling you that you have an extra 3 night’s accommodation?---Correct. 4 5 Did you stay the extra night?---No. 6 7 Do you know if the council, the Shire of Exmouth, was 8 charged for that extra night?---I believe they were not. 9 10 What is that belief based on?---Because we didn’t stay the 11 night. 12 13 Is that all? Is that all that belief is based on?---Yes. 14 15 Madam Associate, would you please go to page number 8 of 16 this document. 17 18 You can see there an invoice from Australian Airports 19 Association national conference 2014 for 30 July 2014 for 20 that extra night’s accommodation on the 28

th. Do you see 21

that?---Yes. 22 23 Take that document down please, Madam Associate. 24 25 So the initial intention was to stay the extra night, but 26 then the plans changed. Is that right?---No, the – as I 27 recall, when the original booking allowance came out, it 28 was all on a booking system, and when that came in there 29 was no availability to stay on the Friday night, but due to 30 travel requirements to then travel back to Exmouth, we 31 would have had to stay on the Friday night. They then 32 adjusted their booking allowances on their booking system, 33 which allowed us to stay the Friday night, which was the 34 end of the conference, the Friday. 35 36 Tell me, Ms Kox, after this conference had finished, did 37 you indeed travel back to Exmouth?---Not directly, no. 38 39 Where did you go?---We went - drove to Brisbane. 40 41 How long were you in Brisbane for?---One night. 42 43 Where did you go from there?---To the Whitsundays. 44 45 And that was a holiday, was it?---Yes, it was. 46 47 For how long did it last?---I can’t recall exactly, seven 48 nights, 10. I’m not sure. 49 50 Was it a holiday on-shore or off-shore?---Off-shore. 51 52 So were you on a vessel?---Yes, we were. 53 54 What?---On a catamaran. 55 56 When you say “we were” who was on that vessel with you? 57 ---My husband and Bill Price and his wife. 58

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1 So the four of you who had travelled to the Australian 2 Airports Association conference then went on from that on a 3 cruising holiday?---Yes. 4 5 How long had this cruising holiday been planned?---I can’t 6 recall. 7 8 Was it planned before you went to the conference?---Before 9 we went to the conference? 10 11 Yes?---Yes. 12 13 So would I be wrong in assuming, and you can tell me if I 14 am, that you had booked the holiday, you went to the 15 conference and you intended to then go on from the 16 conference to the holiday. Is that right?---I can’t recall 17 the order of events, the booking. 18 19 But it was, in any event, convenient for you to be 20 attending a conference on the Gold Coast because that put 21 you much closer to the start point of your cruising 22 holiday?---Yes. 23 24 Madam Associate, would you please put up document 25 number 0387^. Madam Associate, would you please go to page 26 number 2 of that. Thank you; just pause there. 27 28 You can see that this is an email from your husband to LEA 29 Airport?---Yes. 30 31 Whose email address is that?---It’s the airport manager’s 32 email. 33 34 His address?---Pardon? 35 36 His address?---The airport manager’s yes. 37 38 THE COMMISSIONER: He’s the airport manager?---He is the 39 airport manager, yes. 40 41 POWER, MR: You see that it was sent on 24 July 2014. Do 42 you see that?---Yes. 43 44 If you go down the page, Madam Associate, thank you, to the 45 words “charter holiday”. Thank you. 46 47 The subject matter there is “Charter Holiday, Kox, 48 Lightwave 38 power cat from 29 November 2014 to 5 December 49 2014”. That confirms, doesn’t it, that you finished at the 50 conference, you went straight onto, almost straight onto, 51 the boat, and then you started your cruising holiday? 52 ---Yes. 53 54 You can see that what appears below that heading is an 55 email that starts with, “Hi Stephen”, and if you look at 56 the second paragraph beneath that it says, and I quote 57 verbatim, “As requested, we have booked the Lightwave 38 58

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power cat from 29 November 2014 to 5 December 2014”. My 1 showing you this email, does that help you recall when you 2 booked this holiday on the power cat?---Steve was 3 organising the holiday, that part of the holiday. 4 5 Right; but it was always the intention for the four of you 6 to go to the conference and then go straight on to a 7 holiday, wasn’t it?---The intention was to go to the 8 conference. 9 10 What’s the answer to my question?---Yes. 11 12 Madam Associate, would you take that down please. 13 Commissioner, would you bear with me for one minute please? 14 15 Madam Associate, would you please bring up document number 16 0987^. Commissioner, I’m going to proceed with this topic 17 for a little longer if that’s convenient. 18 19 THE COMMISSIONER: Does that mean you want a break? 20 21 POWER, MR: No. 22 23 I’m now going to show you a part of the transcript, and I’m 24 showing you the first page because this is a transcript of 25 the proceedings before this commission on 13 October 2016 26 in which Mr Price gave some evidence in private 27 examination, just so you understand what I’m showing you? 28 ---Okay. 29 30 Madam Associate, would you please go to page number 32. 31 Madam Associate, just leave it at the top of the page, 32 thank you. 33 34 You can see at the top of the page, and I quote verbatim, 35 and the question is asked of Mr Price, “Who were you with 36 when you were out on the boat?” And the answer is, “Myself, 37 my wife, two relations, the Koxes and about three or four 38 other AAA people.” The question is, “So both Jenny and 39 Stephen Kox?” and the answer is, “I think so. I think so.” 40 41 Just so you understand the context of this, at this point 42 in time Mr Price was being questioned about you hiring a 43 boat during the week of the conference. Do you recall 44 going on a boat trip with him during the week of the 45 conference?---Yes. 46 47 Is his description of who was on that boat accurate as best 48 you can recall?---Yes. 49 50 This, he said, took place on the Thursday of that 51 conference?---That’s incorrect. 52 53 When do you think it took place?---It was on the Friday, 54 the last day. 55 56 Take that down please, Madam Associate. Would you please 57 put up document number 0024^. 58

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1 I am now showing you the brochure for the conference? 2 ---Yep. 3 4 I’m sure you recognise that?---Yes. 5 6 And you can see that it is a conference that was supposed 7 to commence on 23 November 2014. Did it?---Yes, it did. 8 9 Did you attend on that day?---Yes. 10 11 And you can see it’s supposed to conclude on Thursday, 12 27 November 2014?---Yes. 13 14 I want to now show you some parts of this brochure and I 15 want to take you first of all to page number 5. You see 16 that here is the start of the conference program as it is 17 described in this brochure?---Yes. 18 19 Madam Associate, would you please go to page number 10. 20 21 I’m now showing you part of that program, as you can see 22 from the top of the page, for Thursday, 27 November. Do 23 you see that?---Yes. 24 25 Madam Associate, would you scroll down to the bottom half 26 of the page please and just pause there. Thank you. 27 28 Can you see this clearly enough, Ms Kox?---Yes, I can, 29 thank you. 30 31 You can see that there are a number of sessions on this 32 day, and I want to take you down to the session time, 33 10.30 am to 11 am, just before morning tea?---Yes. 34 35 Sorry, the session just after morning tea. Have you got 36 that?---Yes. 37 38 You can see that there are a number of topics there, 39 “Latest Standards and Issues” is one; another is “Airport 40 Workplace Safety - Issues to Consider at Your Airport”; 41 another is “Adoption of LED Lighting at US Aerodromes.” At 42 least one of those topics would be of relevance to your 43 employment, wouldn’t it?---LED lighting wouldn’t. 44 45 Yes?---But - - - 46 47 What about Airport Workplace Safety? Would that be of 48 relevance to you?---Could be. 49 50 We then go into the session after lunch, so this is the 51 session starting at 1.30 pm. You can see there – and I 52 won’t read them to you – a number of different matters 53 covered in the presentations. At least one of those would 54 be of relevance to you, wouldn’t it?---No. 55 56 Could we go over the page, Madam Associate. 57 58

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We then have, under the heading Emergency Planning a topic 1 at 3.15 pm to 3.45 pm, Developing Emergency Exercises and 2 Training for Airports. That surely, as the executive 3 manager of aviation services, would be something of 4 interest to you?---Not that year, no. 5 6 Would you bear with me please, Mr Commissioner? I’ve just 7 been given a note. Madam Associate, would you please take 8 that document down and put up 0840^. I beg your pardon 9 393^. Commissioner, we’re just having some technical 10 issues. Commissioner, may I request a short adjournment. 11 12 THE COMMISSIONER: Yes. We seem to have some minor 13 problems. We will have a short adjournment. 14 15

____________________ 16 17 18 POWER, MR: Ms Kox, you said to the commissioner that the 19 boat trip that you went on with your husband and Mr and 20 Mrs Price and others was on the Friday. That of course 21 meant that it was after the conference had been completed? 22 ---I was in error. It was on the last day of conference. 23 24 When did the boat trip start?---I can’t recall exactly. 25 Afternoon; lunch time, afternoon. 26 27 1 o’clock or 2 o’clock?---I can’t recall. 28 29 Did you have lunch on the boat?---We did. 30 31 So where did you pick up the boat from?---I can’t recall 32 exactly. South Port - I think it might've been South Port 33 Harbour. I'm not sure. 34 35 Then you went out on the boat with this group of people and 36 you then presumably anchored somewhere and had lunch. Am I 37 right?---No. 38 39 You kept going?---We ate lunch on the boat. 40 41 And then you came back at what time?---I can’t recall. 42 Afternoon, late afternoon. 43 44 Apart from food being consumed, was alcohol also being 45 consumed on this boat?---Yes. 46 47 Thank you, commissioner. I'm going to move to a different 48 topic. Madam Associate, would you put up document 0930^ 49 please. 50 51 What I'm showing you at the moment, Mrs Kox, is the top 52 half of a page from a corporate card statement and you can 53 see there's the name Neil Smith at the top but, more 54 importantly, under the heading Cardholder Transaction 55 Details you have got the name of the cardholder and you can 56 see your name, can't you?---Yes, I can. 57 58

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The card number to the right of that, that is the card 1 number for the card which you have because you are an 2 employee of the Shire of Exmouth?---Correct. 3 4 So this is the shire's credit card number, isn't it?---I 5 believe so, yes. 6 7 If we then go down the page, Madam Associate. Just pause 8 there, thank you. 9 10 You're now looking at a table showing a number of corporate 11 card transactions, so these are card transactions on the 12 Shire of Exmouth's credit card. Do you accept that?---Yes. 13 14 I want to take you down to one entry there which has 15 "23 Feb" and to the right of it "Karratha Refuellers, 16 Broome". Do you see that?---Yes. 17 18 Then further to the right of that you have got a number 19 "356.73"?---Yes. 20 21 That entry there you know was an expense that was incurred 22 on your Shire of Exmouth credit card?---Yes. 23 24 It was for the purchase of aviation gas or fuel, wasn't 25 it?---I'm not sure. I believe so, yes. 26 27 You would be the only one who would be entitled to use that 28 credit card, wouldn't you?---Yes. 29 30 And so you should know what you spent $356.73 on, shouldn't 31 you?---Can I just go back up the top and check what year. 32 33 YOVICH, MR: On 23 February of what year? 34 35 WITNESS: What year? 36 37 POWER, MR: We will have a look?---Does it say? 38 39 This year?---This year? 40 41 This year?---Yep. 42 43 So did you use the Shire of Exmouth's credit card to 44 purchase $356.73 on 23 February this year?---Yes. 45 46 The number to the right of the $356.73 which is E126355, 47 what does that mean?---That's the account within the 48 budget. The line item within the budget that it's coded 49 to. 50 51 And so what's the purpose of having that number?---It's so 52 – it's to go to a consumables account or a training account 53 or whatever out of the budget. 54 55 If we just go over the page, Madam Associate, you will see 56 there’s a box there which has the words, and I read 57 verbatim, “I have checked the above details and verify they 58

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are correct,” and then there’s a provision for the 1 cardholder’s signature?---Yes. 2 3 That’s your signature there?---Yes, it is. 4 5 Does the date to the right of it mean you applied your 6 signature to that line on 29 March 2016?---Yes. 7 8 Then underneath that you’ll see there’s a provision for the 9 manager or supervisor’s signature, but that’s blank in this 10 case?---Yes. 11 12 Who would normally sign that?---The CEO. 13 14 Mr Bill Price?---Correct. 15 16 Or presumably in his absence, whoever was acting in that 17 role?---As I understand it, yes. 18 19 What’s the reason for having it countersigned?---To check 20 that – like, transparency, to check that it’s correct. 21 22 When you say transparency what do you mean by that?---Well, 23 they’re checking that the payments that we’ve made are 24 correct, I suppose. I’m not sure but, yep, to check – 25 check the payments that we have made are right for payment. 26 27 So would one of the reasons for having the manager or 28 supervisor sign and check this transaction form be to 29 ensure that all of the expenses incurred on that credit 30 card are, for example, work related?---Yes. 31 32 And not for private use?---Yep. 33 34 Because if it a credit card was used to purchase something 35 for personal use, that would be an incorrect use of the 36 credit card?---Correct, yep. 37 38 That would be a breach of the council’s policies?---Yes. 39 40 And that would be a serious matter wouldn’t it?---If it was 41 incorrect use we would identify it and make payment in 42 return. 43 44 Would it be a serious matter if the shire’s credit card was 45 used for a personal purpose?---That’s for the shire to 46 determine, yes. 47 48 You are a senior manager of the shire aren’t you?---Yes. 49 50 What’s your answer to my question?---Yes. 51 52 At the time that you signed this form, the acting chief 53 executive officer was Mr Keith Woodward?---Okay. 54 55 Do you accept that?---I can’t recall. 56 57 I’d ask you to assume that to be the case?---Okay. 58

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1 Mr Woodward was the executive manager of what? 2 ---Engineering services. 3 4 If he was in the role of acting chief executive officer at 5 this time, then he is the person who you should have had to 6 countersign this form. Am I right?---It goes - yes. 7 8 Because him signing the form would deal with that 9 transparency issue that you mentioned a moment ago?---Yes. 10 11 It would also be a way of someone looking at the form and 12 immediately identifying that, for example, the expenses 13 incurred on the credit card were all work related?---Yes. 14 15 And not for personal use?---Yep. 16 17 Having paid for the fuel on your credit card, do you know 18 what it was used for?---It was – the airport manager, 19 Steve, went for training in Karratha on our aviation – on 20 our visitor identification card system, and it was approved 21 by the CEO to take the plane and pay for fuel; like yeah, 22 to take the plane, right, in lieu of taking his car and 23 having to stay overnight in Karratha. 24 25 Where can we find the written confirmation from the chief 26 executive officer that he got that approval to do that?---27 I’m not sure if there is any written confirmation of that. 28 It was a verbal discussion I had with the CEO. 29 30 So you had the discussion with the CEO. Did you go with 31 your husband to Karratha?---No. 32 33 Do you know when he left for Karratha?---No, I can’t 34 recall. 35 36 Was it in the morning or the afternoon?---Morning; morning 37 is my understanding, yes. 38 39 Early morning, mid-morning, late morning?---I don’t know. 40 41 Do you know when he returned from Karratha?---That same 42 day. 43 44 Do you know what time?---I’m not entirely sure. 45 46 Was it in the afternoon or evening?---Afternoon, I believe. 47 48 Based on?---My recollection is that the course, or the 49 training, was for a couple of hours, so he flew over there, 50 did the training and then flew back. I couldn’t tell you 51 exact times. 52 53 This ID training that he was going to do, what was, as far 54 as you understood, the purpose of that training?---It was 55 an upgrade to a software system and required training on 56 that system to know all the little changes that had come 57 about. 58

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1 So his attending this training was something that you had 2 to consider in your role as his supervisor? Am I right? 3 ---Yes. 4 5 Did you look at some documentation before you made - - -? 6 ---Yes. 7 8 - - - the recommendation that he attend?---Yeah. 9 10 What documentation was that?---It was an email from the 11 company saying that they were offering training in these 12 locations around the country; this is one of the places, in 13 Karratha. 14 15 Have you got a copy of that email?---Not on record that I 16 can recall. 17 18 But it presumably would be somewhere on your system?---I 19 don’t know. 20 21 Well, was it sent to you at your work email address? 22 ---It wasn’t sent to me. 23 24 Who was it sent to?---It would have been sent to Steve 25 originally. 26 27 Do you know if it was sent to him at his work email 28 address?---I assume so. 29 30 Did you actually read this email?---Yes. 31 32 Having read it, can you recall to which address it was 33 sent?---It was either sent to the LEA Airport one, which is 34 the airport manager’s address, or the ARO address. I can’t 35 tell you exactly which address it was sent to. 36 37 What was the second address, I’m sorry?---The aerodrome 38 reporting officer email address. 39 40 Is that also ultimately a Shire of Exmouth email address? 41 ---Yes. 42 43 So it would be somewhere in the Shire of Exmouth’s records, 44 would it?---Likely, yes. 45 46 Do you recall, having read the email, who it was from?---It 47 was from ID Security. 48 49 But who in particular?---I don’t know the person’s name. 50 Julie, I think. 51 52 You said that your husband flew down, or flew to Karratha, 53 on an aeroplane and came back?---Yes. 54 55 Whose aeroplane was it?---His. 56 57 Meaning one owned by him, rather than the Shire of 58

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Exmouth?---One owned by him. 1 2 While he was away in Karratha, where were you? 3 ---Without having my diary in front of me, at work. 4 5 So does that mean that at that time you kept a diary? 6 ---Outlook calendar. 7 8 And so if one were to look at that Outlook calendar, you 9 would be able to see where you were at any point in the 10 working day. Is that right?---Not any point in the working 11 day, but if I had meetings or - - - 12 13 If you had not – I’m sorry to speak over you, I didn’t mean 14 to do that?---Yes. 15 16 What details would you keep in your working diary on 17 Outlook?---If I had meetings or things like that. 18 19 Would you record, for example, meetings with business 20 associates?---If I had them, yes. 21 22 Would you also record in that Outlook dairy social events 23 that you went to which had a work-related purpose?---Yes. 24 25 So, for example, if you went out in the course of a working 26 day or at the end of the working day for some social event 27 that had some bearing on the work you were doing for the 28 Shire of Exmouth, one could expect to see that somewhere in 29 your Outlook calendar?---Yes. 30 31 Right?---Yes. 32 33 Would that have been the case on 23 February 2016?---Yeah – 34 I’m not sure; without seeing my calendar, hard to say. 35 36 No, but what I’m asking you, inelegantly obviously, is that 37 in February 2016 was it the case that you kept an Outlook 38 calendar diary - - -?---Yes. 39 40 - - - in which you kept a note of your work-related 41 appointments and social appointments where they had some 42 bearing on your work?---And social appointments, yes. 43 44 Just going back for a moment to the conference that your 45 husband flew his plane to in Karratha - - - 46 47 THE COMMISSIONER: Training?---Training. 48 49 Training; she said training. 50 51 POWER, MR: I beg your pardon – in Karratha, would you 52 have kept a note of that in any of your records?---Not that 53 I’m aware of, no. 54 55 I want to go back to the first page of this document 56 please, Madam Associate. 57 58

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I want to take you to another entry on the same day. Do 1 you see beneath the one that I asked you some questions 2 about - - -?---Yes. 3 4 There’s an entry for the Novotel Ningaloo Resort Exmouth. 5 That I assume is a hotel in Exmouth?---Yes. 6 7 You can see to the right of that there’s an entry for 8 $206.20?---Yep. 9 10 Would it be fair to say reading this entry here that on 11 23 February 2016 you used your shire credit card at the 12 Novotel Ningaloo Resort at Exmouth to purchase something 13 for $206.20?---Yes. 14 15 Do you remember what that was?---That is likely to be a 16 heliport consultative meeting. Again, without having my 17 Outlook I can’t tell you exactly. 18 19 It’s all right. What exactly was the purpose of that 20 meeting?---We have a regular meeting with the industry, the 21 oil and gas industry representatives. 22 23 Why was the meeting taking place at the resort?---That’s 24 where they’ve always taken place. 25 26 So was the money that was spent on your shire’s credit card 27 for food?---It was for alcohol. 28 29 Why was it necessary for you to spend that amount of money 30 on alcohol?---There’s about 10 people that attend the 31 meeting and that’s what we have always done for that group 32 of people. 33 34 Take that down please, Madam Associate. 35 36 Do you have the authority to use the shire’s credit card to 37 purchase alcohol for that kind of event?---Yes. 38 39 Is that not something which you need to get approval from 40 the chief executive officer on?---The chief executive 41 officer when I first joined the organisation said to me 42 when we have these meetings you buy drinks for them at the 43 end of the meetings. 44 45 That presumably is somewhere in writing as well, is it? 46 ---Not in writing that I’m aware of, no. 47 48 Excuse me, Mr Commissioner. Madam Associate, I’m going to 49 ask you to play some telephone intercepts now. 50 51 Just so you understand what’s about to happen, Ms Kox, I’m 52 now going to have played to you some recordings of you and 53 another person on a telephone call and what I’ll do is I’ll 54 let you listen to the recording and then I will put the 55 transcript up so you can see what has been said in 56 writing?---Okay. 57 58

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Madam Associate, would you please play telephone 1 intercept 3946^? 2 3 Start of TI transcript, T3146^: 4 5 KOX: How are ya? 6 7 PRICE: Yeah, how are you Jen? 8 9 KOX: Yeah not too bad. 10 11 PRICE: That’s good. Did you sleep alright? 12 13 KOX: Oh sort of I 14 15 PRICE: Yeah. 16 17 KOX: slept in to about midnight and then I was awake 18

for a few hours and 19 20 PRICE: Yeah. 21 22 KOX: then back in again. 23 24 End of TI transcript. 25 26 POWER, MR: I'm going to ask you, first of all, do you 27 recognise yourself as one of the people in that 28 conversation?---Yes. 29 30 Do you recognise the other voice?---Bill Price. 31 32 Madam Associate, would you please put up the transcript. 33 34 You can see from the header to the transcript, Ms Kox, that 35 this is a telephone conversation that was recorded on 36 13 August 2016 and it starts at about 8.16?---Mm'hm. 37 38 And ends a bit later, at 8.25. I'm playing you the first 39 part of this. Just bring up the whole transcript please, 40 Madam Associate. 41 42 You can hear from what's being played to you that you 43 appear to be expressing some difficulty sleeping?---Yes. 44 45 Because you were worried about something at the time? 46 ---Yep. 47 48 What was it that you were worried about?---This 49 investigation. 50 51 And any particular aspect of this investigation?---Well, 52 only that – yep, just the whole investigation. 53 54 Any particular aspect of it?---The – what was – sorry, can 55 I just confirm what the date was again? 56 57 Yes. Go back to the top please, Madam Associate, 58

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13 August. 1 2 THE COMMISSIONER: 13 August?---13 August. I can only 3 assume – is that the whole of the transcript? 4 5 POWER, MR: This is the bit I'm showing you?---Okay. 6 7 Would you answer my questions please?---Yep, sure. I was 8 concerned that – I understood that there was about to be 9 hearings to commence, so I was concerned about what that 10 was all about. 11 12 I can tell you, Ms Kox, that a search warrant was 13 executed - - -?---Was it? 14 15 - - - on the shire's offices on 11 August 2016?---Is that 16 that date, yep. 17 18 Does that give you some context - - -?---Yep. 19 20 - - - for your concerns?---It does, yeah. So I was aware 21 that the search warrant had been effected and that our name 22 was – documents with my name on them was in that search 23 warrant. 24 25 Would it be right to say, would it be fair to say, and you 26 tell me if it's not in your opinion, that one of the 27 reasons for your worrying at this time, on 13 August, was 28 because the search warrant had been executed?---Yeah. 29 30 And were you concerned about what the search warrant might 31 uncover?---No. I was just – I didn't understand what it 32 was all about. 33 34 Madam Associate, would you take that transcript down 35 please? Madam Associate, would you please now play 36 transcript telephone intercept 3947^. I'm going to ask, 37 Madam Associate, just to pause at the beginning of this 38 transcript just so we can identify or you can identify the 39 voices?---Yep, sure. 40 41 Thank you. 42 43 Start of TI transcript, T3947^: 44 45 PRICE: You’re all 46 47 KOX: Yeah. 48 49 PRICE: good cob. I’m sorry (indistinct) 50 51 KOX: No you’re (indistinct) I’m not 52 53 PRICE: you are captured. No, no 54 55 TI Transcript paused. 56 57 POWER, MR: You recognise your own voice on that?---Yes, I 58

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do. 1 2 Do you also recognise Mr Price's voice?---Yes. 3 4 Would you like to go back to the beginning of this and play 5 it - - -?---No. That's fine. 6 7 All right, thank you. 8 9 TI transcript resumed, T3947: 10 11 KOX: there’s issues, there’s there’ll be things to 12

question I’m sure. 13 14 PRICE: Yeah but they’ll be to question but we’ve got 15

answers. Like I said I’m very comfortable in that 16 area. But you’re just 17

18 KOX: Yeah I know but it 19 20 PRICE: involved so. 21 22 KOX: But if it’s about the travel stuff, the travel 23

stuff there’s questions you, you know about using 24 Steve’s plane to fly to a meeting and 25

26 PRICE: Yeah. 27 28 KOX: you know 29 30 PRICE: Yeah. 31 32 KOX: all that sort of stuff. 33 34 PRICE: Yeah but 35 36 KOX: There’s, there’s issues. 37 38 PRICE: that’s not even recorded actually. That’s not 39

through 40 41 KOX: Oh but no. 42 43 PRICE: the books. 44 45 KOX: Yeah but there was a bill for Avgas that got put 46

on credit card. 47 48 PRICE: Mm. Mm. 49 50 KOX: So, you know the insurance company is aware that 51

using the plane for it cause Sue asked me about 52 it 53

54 PRICE: Mm. Mm. 55 56 KOX: and I had to make that information available so. 57 58

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PRICE: Yeah. 1 2 KOX: You know there’s things like that. 3 4 PRICE: Yeah. 5 6 KOX: So there’s issues. 7 8 PRICE: Yeah but yeah but there’s answers so we won’t 9

worry about it. 10 11 KOX: Yeah I know. 12 13 PRICE: It’s all good. 14 15 KOX: Yeah. 16 17 PRICE: Uhm, sorry to bother you but 18 19 KOX: That’s alright. 20 21 PRICE: can you email me uhm that course you got next 22

week. Uhm well not course that bloody 23 24 KOX: Oh I’m not gonna go. 25 26 PRICE: no, no please just email it to me. I’m going to 27

send it to 28 29 KOX: Mm. 30 31 PRICE: the Councilors and say 32 33 KOX: But 34 35 PRICE: in light of the bullshit uhm I had approved for 36

Jenny to attend this for these reasons boom, 37 boom, boom. This is part of our strategic do you 38 agree or disagree. So and I’ll, I’ll throw 39 everything, we’ve gotta throw some shit back to 40 the Council. And if they say yeah, go. If they 41 don’t. If they don’t 42

43 KOX: Yep then I don’t go. 44 45 PRICE: Uhm. 46 47 KOX: But I,I, I really don’t want to go now, I just, I 48

need just to, I just don’t 49 50 PRICE: Alright. 51 52 KOX: want the hassle (indistinct) 53 54 PRICE: But even 55 56 KOX: But yeah. 57 58

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PRICE: Yeah no, no that’s right mate oh fuck now I just 1 2 KOX: Doesn’t make you feel guilty cause I’m not going. 3 4 PRICE: No. 5 6 KOX: Yeah. 7 8 PRICE: Alright. That’s up to you and I but I was gonna 9

throw it back to them, it’s already booked. You 10 know. I don’t have a problem with it I didn’t 11 have a problem with it and you’re quite entitled 12 to it and cause this is what we’re trying to do 13 but. You know but ah you know. 14

15 KOX: Yeah. Alright I’ll send you some stuff. 16 17 PRICE: Well send it to me if you want to. Now I’ve got a 18

copy of the bullshit, the stuff 19 20 KOX: Yeah. 21 22 PRICE: but I don’t I’m gonna give it to you when Steve’s 23

home. 24 25 KOX: Yep. 26 27 PRICE: Okay? 28 29 KOX: Yep. 30 31 PRICE: So, not that I’m saying there’s anything in it 32

but I don’t wanna give it to you by yourself at 33 the moment. 34

35 KOX: (laughs) Yep, yep. Yep. 36 37 PRICE: Okay? There’s nothing you know it’s you are just. 38

I’d prefer to bring it around at beer o’clock 39 40 KOX: Yes. 41 42 PRICE: tomorrow when Steve’s home. Okay? 43 44 KOX: Yeah, yeah. 45 46 PRICE: Yeah. 47 48 KOX: Well I’ve got concert tomorrow. 49 50 PRICE: Oh is it? Oh well when, when 51 52 KOX: Yeah that’s at, that’s from two o’clock 53 54 PRICE: when it happens. Okay. 55 56 KOX: Yeah. Yeah. 57 58

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PRICE: When’s Steve home? From three o’clock 1 (indistinct) 2

3 KOX: He’s home in the morning. He’s home 4 in the morning. 5 6 PRICE: Oh it’s early isn’t it? Oh well 7 8 KOX: Should be. 9 10 PRICE: I’ll make sure it’s 11 12 KOX: Yeah he should be home at 13 14 PRICE: at lunchtime. 15 16 KOX: eight-thirty. 17 18 PRICE: Okay. 19 20 KOX: Okay. Yep. 21 22 PRICE: We might do lunch tomorrow if you got time. 23 24 KOX: Yeah, yeah. Yep. 25 26 PRICE: If you feel up to it. 27 28 KOX: It’s (indistinct) I haven’t been able to eat 29

really. 30 31 PRICE: Yeah. 32 33 KOX: I don’t know about you. 34 35 PRICE: Well I yesterdee I had no breakfast and no lunch 36

but I had four 37 38 KOX: Yep. 39 40 PRICE: sorry four shits that during 41 42 KOX: Yep same I’ve 43 44 PRICE: the night. Yeah just through nerves. 45 46 KOX: I’ve had the runs. And I just wanna feel like 47

I’ve 48 49 PRICE: Yeah. 50 51 KOX: almost 52 53 PRICE: Yeah. 54 55 KOX: had to you know it’s got like I wanted to throw 56

up so. 57 58

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PRICE: Yeah. But then I had salad last night then but I 1 wasn’t even hungry I (indistinct) but I haven’t 2

3 KOX: Yeah. 4 PRICE: been hungry. Mm yeah. 5 6 KOX: Mum and I, Mum and I had a can of soup last night 7 8 PRICE: Yeah. 9 10 KOX: which tasted like cardboard and then I just 11 12 PRICE: Yeah. 13 14 KOX: had an egg and baked beans this morning for 15

breakfast just so I had something. 16 17 PRICE: Yeah true yes. 18 19 KOX: Mm. 20 21 PRICE: The Shire 22 23 KOX: Uhm. 24 25 PRICE: don’t pay us enough for this crap do they so. 26 27 KOX: Oh it’s just it’s all the everything else beyond 28

it. 29 30 PRICE: Yeah. Yeah. 31 32 End of TI transcript. 33 34 POWER, MR: Madam Associate, would you now put up the 35 transcript of that telephone intercept. 36 37 I’m going to now ask you some questions about some aspects 38 of this transcript?---Sure. 39 40 I’m now showing you the first page, and you can see that 41 this is the same telephone call as I previously took you to 42 a part of, and it’s a call therefore that occurred on 43 13 August 2016?---Mm’hm. 44 45 Madam Associate, would you just scroll down that page a 46 little for me please. Thank you. 47 48 You can see there there’s a passage where Mr Price says, 49 “You are captured, no, no” and you reply, “There’s issues. 50 There’ll be things to question, I’m sure”. When you say 51 there that there’s issues, “There’ll be things to question, 52 I’m sure,” what were you referring to?---Well, this was 53 just after the raid and there was documentation to say that 54 documents had been seized in my - that had my name on it, 55 so my mind was racing, going what’s the questions, what’s 56 being asked, whatever, so you question everything that 57 you’ve done for the whole time of your employment, so I was 58

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looking at things going, well, I don’t know, “Is that an 1 issue, is that an issue?” I don’t know. 2 3 But here, in this statement, you are saying “There’s 4 issues”?---Yeah. 5 6 “There will be things to question, I’m sure”?---Yeah. 7 8 Do you accept that you’re almost saying that in your own 9 mind there are some issues for you? Would you accept that 10 or not?---It wasn’t necessarily what I – it might have been 11 the words that I said. It was - I was just thinking about 12 everything going - what’s going to be questioned, I don’t 13 know. “Is there a problem, is there not a problem?” I’m 14 not sure. 15 16 At that time did you have at the forefront of your mind 17 some issues?---At that stage, yeah. 18 19 If we go down the page, you will see there’s a passage 20 beginning with the word “but”. Have you got that?---Yes, I 21 have. 22 23 “It’s about the travel stuff, the travel stuff. There’s 24 questions, you know, about using Steve’s plane to fly to a 25 meeting”?---Yes. 26 27 Why did you say that?---Because the question had arisen 28 about the insurance of it and we had approval to do so, and 29 I was concerned that something wasn’t ticked off or right, 30 I don’t know. 31 32 By making that statement to Mr Price, were you meaning to 33 indicate to him that there might have been a question about 34 your husband’s plane being used to fly to that 35 meeting - - -?---No. 36 37 Let me finish the question before you even try to answer 38 it?---I’m sorry. Sorry. 39 40 Were you raising with Mr Price an issue about the purchase 41 of the Avgas?---No. 42 43 Were you concerned about the Avgas had been purchased and 44 not signed off by your immediate superior, the chief 45 executive officer or his acting chief executive officer? 46 ---No. 47 48 But that was an irregularity, wasn’t it, not having it 49 signed off in that way?---I wasn’t aware that it wasn’t 50 signed off. 51 52 When I showed you the form a moment ago - - -?---Yes. 53 54 - - - you accepted that that was an irregularity. It is an 55 irregularity, isn’t it, not to have it signed off in that 56 way?---Yeah, but I wasn’t aware that the form hadn’t been 57 signed by the manager. 58

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1 So you are saying here that your reference to there being 2 questions, “You know, about using Steve’s plane to fly to a 3 meeting - - -“?---Yes. 4 5 - - - is a reference to there being an insurance issue? 6 ---Yes. 7 8 Is that all?---Yeah. 9 10 Over the page, Madam Associate. 11 12 You see at the start of that page you say, “All that sort 13 of stuff” and then you go on to say, “There’s issues”. 14 Mr Price says, “That’s not even recorded, actually, that’s 15 not through” – and you say, “Oh, but no”, and he says, “the 16 books”. Then you say, “Yeah, but there was a bill for 17 Avgas that got put on the credit card”. Just pause for a 18 minute before you say anything?---Mm’hm. 19 20 When Mr Price said to you, “That’s not even recorded 21 actually; that’s not through the books”, what did you 22 understand him to mean by saying that?---I can’t say that I 23 recall it even being said, and I - - - 24 25 My question is what did you mean, what did you understand 26 him to mean, when he said that?---I don’t know. 27 28 You understood him to mean something, didn’t you?---I can’t 29 – I can’t recall. 30 31 The reason I’m asking you, I’m putting to you the 32 proposition that you understood him to mean something, is 33 because without him mentioning the bill for the Avgas, you 34 then say, “Yeah, but there was a bill for Avgas that got 35 put on the credit card”?---Yeah. 36 37 That’s you telling him that you have a concern about the 38 bill for the Avgas, isn’t it?---Yeah. 39 40 And what you’re referring to there is the bill for the 41 Avgas that was put into your husband’s plane when he flew 42 to Karratha?---Yes. 43 44 Am I right?---Yeah. 45 46 And you say he flew to Karratha, your husband, for a 47 work-related purpose?---Correct. 48 49 So why would there be any concern about the bill for the 50 Avgas?---The concern was - just making in my mind was my 51 recollection was that there was an – it was an over-the-52 phone confirmation of the credit card number, but I 53 couldn’t recall exactly whether that was the case. 54 55 But if the credit card was used for a work-related purpose, 56 that is, to put fuel into the plane and the plane was then 57 used to fly to Karratha for work and fly back, why would 58

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there be a concern about the bill?---The concern was had – 1 had I given Steve the credit card to use, take with him to 2 do that; or had I had a telephone call to provide the 3 number there. My recollection was it was a telephone call 4 to provide the number over the phone on – for payment, but 5 I couldn’t recall exactly. 6 7 THE COMMISSIONER: Sorry, I’m having difficulty in 8 understanding that explanation - - -?---Sorry, yeah. 9 10 - - - for the words that are here. I’m having difficulty 11 understanding that explanation for the words that are 12 here?---Yeah. 13 14 I just flag that I’m having a difficulty and maybe counsel 15 can explore it?---No worries. 16 17 POWER, MR: Let me put to you the proposition very 18 plainly?---Yep. 19 20 The reason for your concern about the bill for the Avgas 21 was because the Avgas was used for a personal purpose? 22 ---No; no, not at all. 23 24 Then what other reason would you have for its concern? 25 ---Like the other reason for concern is that I have given 26 him my credit card and he’s taken it with him to pay for 27 the Avgas rather than me. 28 29 Let’s just put to one side for the moment the fact that 30 you’ve given him your credit card to use?---If that is 31 indeed the case. 32 33 So you don’t recall whether it’s the case or not?---I can’t 34 recall. 35 36 All right?---That was my concern. 37 38 But even if you had done that and it was then used to 39 purchase fuel for a work-related trip to and from Karratha, 40 that would be a legitimate business expense, wouldn’t it? 41 ---Yes. Yeah, it would. 42 43 That doesn’t really explain, does it, why you would have a 44 concern about the bill for the Avgas?---It does, because 45 it’s against council policy to give your credit card to 46 other people. 47 48 But you don’t remember whether that happened or not?---I 49 can’t remember, no. So like I said, I was just concerned. 50 51 THE COMMISSIONER: Did you go to Karratha?---No. 52 53 So you must have given your credit card to him?---Well, 54 there was – either I gave him the credit card or they rang 55 for the credit card details and I provided them over the 56 phone, but I couldn’t recall either way. 57 58

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POWER, MR: Commissioner, may I move on? Thank you. 1 2 I want to take you then to a passage please, Ms Kox, which 3 begins over the next page please, Madam Associate, and it 4 begins at the top of the page where Mr Price you can see is 5 speaking about you emailing him obviously some details 6 about a course you have the next week?---Yes. 7 8 What course was that?---It was a course on – it was an 9 airport round table. It was called - and it was about 10 strategic planning with airlines. 11 12 Where was it to take place?---In the Sunshine Coast. 13 14 So an interstate trip?---Yes. 15 16 For how long was it to last?---I can’t recall but two days, 17 I think. 18 19 Was it intended that you go for work-related purposes? 20 ---Yes. 21 22 Did you go?---No. 23 24 If we follow this conversation down the page you say, “Oh 25 I’m not gonna go,” and then if we go down past the “Mm” to 26 the next entry for you you say, “But” - Mr Price says 27 something and then you say, “Yep, then I don’t go,” and 28 then one line below that you say, “But I, I, I really don’t 29 want to go now, I just, I need just to, I just don’t,” and 30 then one line below that you say “want the hassle”?---Yep. 31 32 Presumably the reason why you were contemplating going to 33 this conference in the first place was because you thought 34 it would be of some use to you?---Yes, a benefit to the 35 shire. 36 37 You told us a moment ago that it would have been work 38 related?---Yes. 39 40 So what was it about this interstate trip that you were as 41 a result now expressing some strong desire not to go to? 42 ---Because I was unwell. 43 44 Because of the nerves?---Well, I was unwell. I had the 45 flu. 46 47 Madam Associate, would you go to the next page please. 48 49 Just two lines down from the top of this page you can see 50 you say, “Alright I’ll send you some stuff.” Do you see 51 that?---Yes. 52 53 Mr Price says, “Well, send it to me if you want to. Now 54 I’ve got a copy of the bullshit, the stuff.” You say 55 “Yeah” and he says, “But I don’t – I’m gonna give it to you 56 when Steve’s home,” and if we then go three lines below 57 that and he says, “So not that I’m saying there’s anything 58

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in it but I don’t wanna give it to you by yourself at the 1 moment,” and then a line below that he says, “Okay? 2 There’s nothing you know it’s you are just - I prefer to 3 bring it around at beer o’clock”?---Mm’hm. 4 5 What was it that he was talking about?---The warrant. 6 Did he bring it around?---Not that day, no. 7 8 Did he bring it around at a later time?---We went to his 9 house and saw it. 10 11 When?---The Sunday, I believe. 12 13 Did he give it to you?---He showed us a copy. 14 15 Did you read it?---Yep. Not – not – we didn't have the 16 front, just what was taken. It was the schedule of 17 documents that was taken. That's what we saw. 18 19 So you read through the schedule to the warrant?---Yes. 20 21 Madam Associate, would you please put up document 22 number 0850^? 23 24 I just want to take a moment please to look at the top half 25 of the front page?---Yeah. 26 27 Then I will show you the bottom half of the front page? 28 ---Sure. 29 30 Tell me when you're done reading it?---Yes, thank you. 31 32 Madam Associate, would you now please go to page 3 of this 33 document? You spoke a moment ago about a schedule?---Yes. 34 35 Is this the schedule about which you were speaking?---Yes. 36 37 I'm just going to give you a moment just to look at the 38 schedule. Tell me when you have finished what's on the 39 screen please?---Yep, thank you. 40 41 Just scroll down please, Madam Associate?---Thank you. 42 43 Would you go to the next page please, Madam Associate? 44 Pause there, thank you?---Yep, thank you. 45 46 Please scroll down, Madam Associate?---Thank you. 47 48 Go to the next page please, Madam Associate. Just pause 49 there?---Yep. 50 51 Ms Kox, when you read this schedule you understood what the 52 search warrant was concerned with, didn't you?---I 53 understood what documents were taken. 54 55 Madam Associate, please take that down. Madam Associate, 56 would you please put up document number 0568^? 57 58

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I'm now showing you part of a page from the Shire of 1 Exmouth's policy manual?---Yep. 2 3 This is a document which you have seen before; that is, the 4 policy manual?---Yes. 5 6 You can see from the part that I'm showing you now that it 7 speaks of the use of the corporate credit card?---Mm'hm. 8 9 Madam Associate, would you please go down to the bottom 10 half of the page? 11 12 Would you please look at paragraphs 5, 8 and 9 and read 13 them to yourself?---Yes. 14 15 Madam Associate, please go to the next page. Pause there. 16 17 Just read that to yourself please?---Mm'hm. 18 19 The passages I have directed your attention to, Ms Kox, 20 they contain some requirements for the use of the credit 21 card and you have always understood those to apply to your 22 shire's credit card, don't you?---Yes. 23 24 Excuse me, commissioner. Commissioner, I have no further 25 questions. 26 27 THE COMMISSIONER: We will take a morning break and we 28 will resume at 11.15. 29 30

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(Reporter’s note: approximately 30 seconds of recording 1 missed due to muted microphones.) 2

3 YOVICH, MR: You were asked some questions about a 4 telephone call that you had with Bill Price that we have 5 heard parts of played, and you have seen the transcript of 6 parts of that call?---Yes. 7 8 And the parts of the transcript that I want to ask you 9 about have to do with an exchange you had with Mr Price 10 about an Avgas bill?---Yes. 11 12 THE COMMISSIONER: Would you like the transcript on the 13 screen? 14 15 YOVICH, MR: I will in due course, commissioner, but I 16 will ask a few preliminary questions first. 17 18 Just tell us, if you would please, what that Avgas was 19 for?---Sure. Steve attended a training session in Karratha 20 for the ID system for the visitor identification card 21 system that we use. Karratha is a five and a half hour 22 drive away from Exmouth, so to get there you have to drive 23 for five and a half hours, do the course, stay overnight, 24 come back the next day. There was an opportunity, he 25 suggested, “I could use my own aircraft and just claim the 26 fuel” and therefore be attending that training session and 27 back in the same day. 28 29 So when the idea of the training session was identified, 30 who identified that as a possible thing for Steve to do? 31 ---Steve did to me. 32 33 Okay, and then what process did you follow to determine 34 whether he was allowed to go on that?---Yep, I reviewed the 35 application, the consideration of the document, and then I 36 actually took it to the CEO as well for consideration. 37 38 And the CEO is Bill Price?---Yes, that’s correct. 39 40 And what did you say to Bill?---I said to Bill exactly 41 that. There’s two ways that he can go there, either – 42 needs to go, because it’s relevant to the work that we’re 43 doing. He can either drive there, lose him for two days in 44 effect, or he can take the plane and be back in the day. 45 46 What was Bill’s response?---Bill’s response was, “Use the 47 plane, claim for the fuel”. 48 49 Is that what happened?---That’s what happened. 50 51 All right. Now, if we can have that transcript up now 52 please, Madam Associate. The document number I think is 53 number 512, 0512^. 54 55 THE COMMISSIONER: 3947^ I think. 56 57 YOVICH, MR: That’s the call; the session number is 0512, 58

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we’ve got the – my mistake. 1 2 So that’s the first page that you were shown of a 3 conversation on 13 August 2016, which you had on the 4 telephone with Bill Price?---Yes. 5 6 We have heard, Mr Power has asked you some questions about, 7 being aware that a search warrant had been executed at the 8 shire offices on 11 August?---Yes. 9 10 At the time of this telephone call, you were aware that 11 that search warrant had been executed?---Yes, I was. 12 13 And you were aware in general terms of the classes of 14 documents that were being looked for?---Yep. 15 16 Had you at the time of this call seen the warrant schedule 17 that we talked about?---No. 18 19 You had some other knowledge of documents relating to your 20 work and to Steve’s work and to expenses were among those 21 that were - - -?---I was aware that it was relating to 22 Steve and myself, were part of the documents that had been 23 seized, yes. 24 25 How did you feel about the fact that a search warrant had 26 been executed at the shire offices and that among the 27 documents were documents relating to that subject? 28 ---Extremely upset and concerned and worried and anxious. 29 30 Why?---Because I just didn’t understand what it was all 31 about. I didn’t understand why I was being looked at. 32 33 In the conversation - if we can go to I think it was the 34 third page of the transcript that you were shown. That’s 35 not the bit I’m looking for, maybe it’s – here we are, yes. 36 If we can scroll up a little bit, my fault, it’s on the 37 second page for the record. So the top of the page, you’re 38 recorded as saying, “All that sort of stuff”. Mr Price 39 says, “Yeah, but”, you say, ”There’s issues”, and then Mr 40 Price says, “That’s not even recorded, actually, that’s not 41 through the books”. You then say, “Yeah, but there was a 42 bill for Avgas that got put on credit card”. Mr Price 43 says, “Mm”. You said, “So, you know, the insurance company 44 is aware that using the plane for it because Sue asked me 45 about it, and I had to make that information available, 46 so - - -“?---Yes. 47 48 Counsel assisting asked you about your comment to the 49 effect that there was a bill for Avgas that’s put on credit 50 card?---Yeah. 51 52 And you’ve given evidence about whether that fact concerned 53 you and why?---Yeah. 54 55 Just tell us again, why were you concerned about the fact 56 that there was that bill?---It wasn’t about the fact that 57 there was the bill, because the approval had been given to 58

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actually fly there and use the plane. It was about the way 1 that the bill had been paid. 2 3 As at the time of this telephone conversation, could you 4 independently recall for sure how the bill had been paid? 5 ---No, I couldn’t. 6 7 Now, the next thing you say is about the insurance company 8 being aware and Sue asking you about it?---Yes. 9 10 What did you mean by that?---So subsequent to Steve going 11 on the trip, to the training course, Sue O’Toole, the 12 corporate services executive manager, said, you know, “Why 13 was the plane being used? It’s not on our insurance”, and 14 I advised her that Bill had approved the use for it for 15 these reasons. 16 17 Do you know how Sue O’Toole would have come to be aware of 18 this transaction?---No, no. 19 20 What was her job again?---She’s the executive manager of 21 corporate services. 22 23 So the bill for the Avgas, what documentation was generated 24 in relation to that?---There was a receipt for it and then 25 it would have been issued as part of the credit card 26 statement. 27 28 I will come in a little while - but maybe now’s the time: 29 when you used the corporate credit card that you had to pay 30 for anything how did you document that payment, what would 31 you do?---We would – when the credit card – it’s changed 32 over the time that I’ve been there. 33 34 Okay?---But at this time? 35 36 Can you recall what the procedure was at the time of this 37 transaction?---Sure. There was an expenses form that we 38 put down our credit card expenditure on each month as it 39 occurs and then at the end of the month or when the credit 40 card statement comes in we marry the two together and then 41 attach invoices and we assign costing codes to which part 42 of the account that it goes to. 43 44 So as at February 2016 when this transaction took place, 45 you had a document that you would fill out each transaction 46 as it took place?---As it took place, yep. 47 48 When you got the credit card statement you compare that to 49 the document?---Correct, yeah. 50 51 You reconcile each transaction?---Yes. 52 53 You provide invoices for each transaction?---Yes. 54 55 What if you didn’t have an invoice for a given 56 transaction?---If there wasn’t one we had to identify that 57 there wasn’t one and that it was a legitimate reason why 58

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there wasn’t. 1 2 What document would you fill out to cover that?---No, we 3 would just write it on that expenses form. 4 5 You talk about codes?---Yes. 6 7 And I think when we saw the credit card statement we saw 8 some codes?---Yes. 9 10 They were six-digit numbers after an E?---Yep. 11 12 What do those codes mean?---So those codes are part of what 13 area of the budget that it gets allocated to. 14 15 Who puts those codes on that document?---On the expense 16 sheet, I do. 17 18 Yes?---On that sheet, on the statement sheet, in the ones 19 that were recorded in the evidence that was provided, 20 that’s by finance department. 21 22 When you’ve done your reconciliation of the credit card 23 statement to the expense statement you generated as you go, 24 and attached the invoices and put all that together, where 25 does that documentation go?---To finance. 26 27 Who in finance looks at that?---The finance officer. 28 29 What was that person’s name in February 2016?---Cally 30 Schmidt. 31 32 Okay, and then if there are any issues with any payments, 33 if any payment appears not to be authorised or if any error 34 is detected, what do they do?---They come to me about it or 35 break it up through their chain of command and they come, 36 but somebody in that process or in that line comes to me 37 about it. 38 39 Before that system was in place, what was the system that 40 was in place?---Prior to that we didn’t have the expense 41 form, the spreadsheet, we just had the credit card 42 statement; which we still did the same process, we 43 handwrote on the accounts and had the invoices attached to 44 the back of it. 45 46 So again was that documentation provided to the people in 47 finance?---Yes, it was. 48 49 So the difference in systems is the sheet that you keep 50 going?---Correct. 51 52 But in relation to each monthly credit card statement, 53 every transaction on it had to be accounted for?---Yes. 54 55 In that process over the course of your employment at 56 Exmouth, did you on occasion find expenses that you had 57 paid for on the corporate credit card that weren’t work 58

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expenses?---Yes. 1 2 Can you give an example?---I had one a couple of years ago 3 that was for some music that I’d put onto the – onto the 4 iPad, so. 5 6 That was a private expense?---It was a private expense, 7 yeah. 8 9 How did it come to be paid for on the corporate credit 10 card?---Normally what I would do with the – well, what I do 11 do is I buy iTunes cards personally and load it up onto the 12 iPad because I know that occasionally I use – use it for 13 music for ballet or whatever, and at this stage it – but 14 the – what’s the word? At the end of it if that money runs 15 out, it reverts back to being the corporate credit card 16 that pays for - - - 17 18 I see. So if you bought a voucher for a certain amount and 19 you then buy music and the cost of the music exceeds what’s 20 left on the voucher, the corporate credit card is the 21 default paying method?---Correct, yeah. 22 23 When you discovered that mistake what did you do about it? 24 ---I – I asked for an invoice to be raised to me and I 25 reimbursed the shire for that amount. 26 27 Were there occasions when you had submitted claims for the 28 monthly corporate card expenses and the finance person came 29 back to you and said this expense that you paid for on the 30 card doesn’t seem to be a work expense?---Yep. 31 32 What happened in those situations?---Same situation. 33 34 Was there ever any possibility that a payment that you made 35 on the corporate credit card that was not a work-related 36 expense would not be discovered - - -?---No. 37 38 - - - and repaid?---Yep, no. 39 40 The next thing I want to ask you about or perhaps before we 41 leave this telephone call: when Sue raised with you the 42 issue about the flight not being covered by the shire’s 43 insurance, what was your response?---Yep, I advised her 44 that it had been approved by the CEO and we provided the 45 details of the aircraft so that it could be included on the 46 insurance. 47 48 Was the upshot of that exchange that the information you 49 provided to Sue demonstrated that in fact the flight was or 50 could properly be covered by the insurance?---Yes. 51 52 You were asked some questions about a heliport meeting at 53 the Ningaloo Resort Hotel - - -?---Yes. 54 55 - - - and a particular transaction that was also 56 23 February 2016 - - -?---Yep. 57 58

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- - - and buying drinks for people on the corporate credit 1 card?---Yep. 2 3 You’ve given some evidence that when you first started work 4 you had a conversation with Mr Price in which he said this 5 is what you do when you buy drinks for people?---Yep. 6 7 What people were at these meetings?---So it was the 8 representatives of the oil and gas companies that operate 9 out of Exmouth, representatives of the helicopter operators 10 that operate out of Exmouth, and a Qantas representative 11 and shire representatives as well. 12 13 What was the purpose of these heliport consultative 14 meetings?---This is – it’s a meeting that was initially 15 instigated when the shire took over the operation of the 16 heliport in 2012 and they wanted - - - 17 18 In 2012, was that before you started or after?---Prior to 19 me, yeah. 1 January 2012 the airport – the shire took over 20 the operation and as part of that the oil and gas companies 21 wanted a level of oversight and they asked for bi-monthly 22 meetings. They’re now – they’re happy with the service and 23 they’re now back to quarterly meetings. 24 25 But were there multiple meetings of this type where alcohol 26 was bought for these representatives?---Yes. 27 28 That was approved in advance by the CEO as part of 29 expenses?---Yes. 30 31 THE COMMISSIONER: So do I understand that the oil and gas 32 wanted oversight of the operations of the heliport?---Just 33 at the original commencement of when we took over the 34 service, yes. 35 36 It was run by the Shire of Exmouth?---Yes. 37 38 And the Shire of Exmouth bought them booze?---Yep. 39 40 Carry on. 41 42 YOVICH, MR: Were all those meetings documented?---Yes. 43 44 And transactions documented?---Yes. 45 46 I think I’ve covered that little section of my notes. The 47 next subject working backwards is the conference on the 48 Gold Coast and your trip to the Whitsundays that followed 49 it?---Yes. 50 51 Can I ask you first of all about going to the conference? 52 ---Yes. 53 54 What was the conference?---The conference is the Australian 55 Airports Association’s national conference where - - - 56 57 How often do they have those?---Annually for the national 58

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conference. 1 2 How many of those have you been to?---I’ve been to a number 3 of them over the years. 4 5 During your time working at Exmouth, have you gone to that 6 conference each year?---Yes, I have. 7 8 Do you have a role in the AAA?---On the AAA? Yes, I do. 9 10 What is that role?---Currently I’m the West Australian 11 director on the board. 12 13 When you started work at the Shire of Exmouth did you have 14 a role in the AAA?---Yes, I did. 15 16 What was that role?---I was the honorary secretary for the 17 WA division. 18 19 Those respective roles, do they give you or do they impose 20 upon you responsibilities in relation to attending AAA 21 events?---Yes. 22 23 When you started work at the shire did you raise with them 24 this issue about your membership of the AAA as an 25 officeholder - - -?---Yes. 26 27 - - - and what it meant?---Yes. 28 29 As an officeholder of the AAA was that a benefit to the 30 shire as part of your work?---Yes. 31 32 Explain why?---Well, we have not only the national 33 conference but state meetings as well, so there's a 34 regional meeting and an AGM. When I originally started at 35 the Shire of Exmouth, as I said, I was the secretary, so I 36 was responsible for pulling together the agenda. So the 37 benefit was that I could actually mould the agenda into 38 what was going to be most beneficial for our shire. So for 39 example, at one of the meetings we had a session about 40 ground handling which was able to then bring our staff 41 along to that meeting to actually gain some more learnings 42 in that space. 43 44 Insofar as the AAA conference is concerned, we have heard 45 some evidence about particular sessions?---Yes. 46 47 Some that were of value to your work knowledge pool, if I 48 can put it that way?---Yes. 49 50 Was that another benefit that your membership of the AAA 51 and attendance at AAA conferences gave to your employer? 52 ---Most definitely. 53 54 Getting down to specifics in relation to this conference, 55 you have been asked some questions about the last day of 56 the conference?---Yes. 57 58

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Thursday, 27 November?---Yep. 1 2 And about a boat trip that you and others took on that 3 day?---Yes. 4 5 Did going on the trip mean that you missed one or more 6 sessions of the conference?---Yes. 7 8 And you knew that at the time that you decided to go on the 9 boat trip?---Yep. 10 11 What conference sessions did you miss?---I missed the 12 ones - - - 13 14 Do you need the program in front of you - - -?---No. I'm 15 fairly comfortable. 16 17 All right?---I missed the ones about lighting and the ones 18 about emergency exercise management. 19 20 The ones about lighting, were they sessions that attending 21 would have given value to you?---To me personally for 22 knowledge but not to the shire. 23 24 Why not?---Because we're not responsible for the lighting 25 of our aerodrome. 26 27 Who is?---The RAAF base. We're on a RAAF base. 28 29 I see, and the other session that you missed, what was that 30 one?---Emergency management. 31 32 Was that something that attending was of value to the 33 shire?---Not at that time. We'd already organised our 34 emergency exercise for that year. 35 36 When you made the decision to go on this boat trip and miss 37 those sessions, did you have those considerations in mind? 38 ---Yes, I did. 39 40 If the sessions that were scheduled during the boat trip 41 were sessions that attending would give value to the shire 42 through your gaining knowledge, would you have gone on the 43 boat trip?---No. 44 45 Following the conference you and your husband and I think 46 Mr Price and his wife went for a holiday to the 47 Whitsundays?---Yes. 48 49 Why did you do that?---Because we wanted a holiday. 50 51 Did you go to the AAA conference on the Gold Coast solely 52 in order to go on the holiday to the Whitsundays?---No, not 53 at all. 54 55 If you had not been wanting to go on holiday to the 56 Whitsundays, would you have gone to the AAA conference 57 anyway?---Yes. 58

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1 That part of the time that you were away from work that was 2 on the conference, was that time you took leave on or time 3 that you were on work time?---The conference was work time. 4 5 All right. Was that your practice throughout your – or has 6 that been your practice throughout your employment?---Yes. 7 8 The time that you were at the Whitsundays on holiday, was 9 that time that was work time or leave time?---Leave time. 10 11 Who paid for the Whitsundays part?---We did. 12 13 So were any expenses relating to the holiday part of your 14 time in Queensland paid for by the shire?---No. 15 16 Expenses relating to your time at the conference were? 17 ---Yes. 18 19 THE COMMISSIONER: There may have been one extra day. 20 21 YOVICH, MR: I was going to ask about that actually, your 22 Honour. Thank you. 23 24 The extra day – commissioner, are you referring to the 25 start or the end? 26 27 THE COMMISSIONER: The end. 28 29 YOVICH, MR: The end? 30 31 We have had some questions about there being five nights' 32 accommodation paid for at 995 total?---Yes. 33 34 And then about a sixth night, an extra $199?---Yep. 35 36 What were the circumstances in which that extra night's 37 payment arose?---Well, originally we were thinking we were 38 having to stay there on that night prior to going on 39 holidays, but we didn't. 40 41 What happened instead?---We – instead we left on - our last 42 night was – I've got to get my days right now. Thursday 43 was the last day of the conference, so the last night was 44 the Wednesday night and then we drove to Brisbane after the 45 conference. 46 47 So the Wednesday night was the last night that you stayed 48 overnight at the hotel that the shire was paying for? 49 ---Yes. 50 51 On the Thursday there were conference sessions you attended 52 in the morning?---Yes. 53 54 You had the boat trip in the afternoon?---Yes. 55 56 And then you drove to Brisbane in the evening?---Correct. 57 58

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You stayed in Brisbane?---Yes, we did. 1 2 Who paid for that?---We did. 3 4 This $199 extra that we have seen in the documentation for 5 the staying of the final night, the Thursday night - - -? 6 ---Yeah. 7 8 - - - did that end up being an expense that the shire 9 paid?---No. 10 11 All right?---We cancelled that night's accommodation. 12 13 The next subject I will cover with you is the issue of 14 leave?---Mm’hm. 15 16 You have been shown a number of documents involving your 17 husband essentially approving his own leave?---Yeah. 18 19 Before we get to that I want to ask you about the process 20 whereby you decided when you would seek to take leave. How 21 did you do that?---We look at the rosters of staff, who is 22 already on leave, who’s available and whether there was 23 sufficient for us to be away. 24 25 You have said “we” and “us” in both cases. Did you make 26 your decisions about going away on leave independently of 27 your husband or always with your husband or was there a 28 mixture?---There was a mixture. 29 30 What did it depend on?---It depended on – well, sometimes 31 he was away for his own purposes, I was away for my own 32 purposes, and sometimes we were jointly away but it was 33 always looking at rosters and - - - 34 35 When you were going to be on leave, who covered your job? 36 ---Depending on the time of leave that we were away from, 37 but if it was an extended - - - 38 39 Can I stop you. You keep saying “we”, I’m only asking you 40 about when you - - -?---Okay, about me, sorry, yeah. 41 42 So when you yourself - - -?---When I was on leave? 43 44 - - - were on leave, who covered your job?---Clif O’Toole 45 generally. 46 47 And if Clif O’Toole was not available to cover your job on 48 an occasion when you wanted to take leave, what happened? 49 ---We didn’t go on leave. 50 51 So you have said “we”?---I didn’t go on leave. 52 53 The fact that you’ve said “we” indicates that on a 54 significant number of occasions you took leave with your 55 husband?---Yes. 56 57 When you and your husband were both away on leave, who 58

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covered the two of you?---So Clif O’Toole would cover my 1 position and Andrew Froom, who is our team leader for ARO, 2 he would be Steve’s cover. 3 4 And for your leave, your own leave, who had to sign off 5 approval?---Bill Price. 6 7 And for Steve’s leave, you had to sign off for his?---Yes. 8 9 We have seen a number of documents that show that there 10 were occasions when you did not?---Yeah. 11 12 Why didn’t you do that?---Not sure. 13 14 On any occasion that you chose to take leave, did you put 15 your interests ahead of the shire’s interests in timing? 16 ---No. 17 18 On any occasion where, to your knowledge, Steve took leave 19 and sought your approval, in getting your approval, whose 20 interests did you put first?---The shire’s. 21 22 And if the two of you were away on leave at a time when the 23 airport couldn’t be run properly because people weren’t 24 there to cover, or for whatever reason, on whom would any 25 fallout from that end up falling?---On me. 26 27 Why?---Because I haven’t managed the situation properly, 28 haven’t managed the staffing. 29 30 That brings me to the subject of your supervision of your 31 husband?---Mm’hm. 32 33 When you started work in your role as executive manager of 34 airport services, what was Steve’s work status?---He 35 had - was the preferred candidate for the airport manager’s 36 position. 37 38 When did the two of you start work in relation to that? 39 ---We both started on the same day, 22 October. 40 41 At the time that you were applying for the executive 42 manager’s job, were you aware of Steve’s status in terms of 43 applying for the airport manager’s job?---Yes. 44 45 Who applied first?---He applied first. 46 47 And so when you had your interview, and we will come to 48 that in due course, what was your state of awareness of 49 whether Steve was likely to get job or going to get this 50 job?---I can’t recall entirely whether he had the position 51 or not but I believe - - - 52 53 But it’s obvious that the two of you discussed the fact 54 that you were both going to be applying for jobs - - -? 55 ---Yes. 56 57 When you got the job – perhaps I’ll ask it in a different 58

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way. When did it first become apparent to you that Steve 1 was your direct report and that you were required to 2 supervise him?---I knew that immediately when I applied for 3 the position. 4 5 Was that something that was raised during the interview 6 process or in the process of getting the job?---I can’t 7 recall during the interview process but certainly 8 straightway. 9 10 THE COMMISSIONER: Sorry, who interviewed you?---Sorry? 11 12 Who interviewed you?---Who interviewed me? It was a panel 13 and it was a phone interview. There was Bill Price, the 14 CEO; Andrew Forte, the current executive manager, aviation 15 services, and Vanessa Volkoff, the admin manager/HR person. 16 17 YOVICH, MR: We might at this stage go to that subject, 18 the last one I’m going to cover that logically makes sense 19 of this, and I’ve got, commissioner, a bundle of documents 20 that we will seek to put before the commission. 21 22 THE COMMISSIONER: What are they about? 23 24 YOVICH, MR: There’s a series of them. 25 26 THE COMMISSIONER: No, just generally. 27 28 YOVICH, MR: Generally, there are a few to do with the 29 application for employment in February 2011 that was 30 unsuccessful. More particularly, there are a bundle that 31 deal with the successful application for employment in late 32 2012, and a couple in particular that deal with the 33 interview process and the referees which have been a 34 subject that’s in evidence. There are a series of 35 performance reviews of Stephen Kox by Ms Kox, no, two are 36 by Ms Kox. I suspect that the commission probably has all 37 of these anyway, because - - - 38 39 THE COMMISSIONER: We will take them in, but if you can 40 deal with it relatively quickly - - - 41 42 YOVICH, MR: I’ll try. 43 44 THE COMMISSIONER: - - - because none of that has actually 45 been put to Ms Kox, and none of it really is an issue of 46 interest to the investigation. I mean, at the moment, the 47 interest of the commission on this topic is the conflict of 48 interest. 49 50 YOVICH, MR: Yes. 51 52 THE COMMISSIONER: Now, I recognise that that was a 53 conflict which the senior management knew about. 54 55 YOVICH, MR: It created. 56 57 THE COMMISSIONER: Created. 58

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1 YOVICH, MR: Yes. 2 3 THE COMMISSIONER: And that is an issue in relation to 4 them that I am giving consideration about, but counsel’s 5 questions to Mrs Kox were how she managed it within the 6 code of conduct. So you can - - - 7 8 YOVICH, MR: I will confine my questions to addressing 9 that. 10 11 THE COMMISSIONER: Apart from that, it’s of marginal 12 interest. 13 14 YOVICH, MR: I’m I hope reassured by that, commissioner. 15 One issue, of course, that is occupying my mind is the 16 potential for a suggestion of serious misconduct to be made 17 about the substance of Ms Kox’s supervision of her husband 18 as opposed to the obvious, if I can use the term, formal 19 conflict of interest that existed by the very fact of their 20 positions, and obviously - - - 21 22 THE COMMISSIONER: We’re in no position to examine the 23 substance - - - 24 25 YOVICH, MR: All right. I will deal with this - - - 26 27 THE COMMISSIONER: - - - without spending about two months 28 observing Mr Kox in the job, which I don’t pretend to do. 29 30 YOVICH, MR: All right, commissioner. 31 32 THE COMMISSIONER: If what I have just said changes, then 33 obviously I will give you ample opportunity to make 34 representations. 35 36 YOVICH, MR: All right. Then I will hand up the bundle, 37 but I won’t go through them in the detail I was planning 38 to. I don’t I think then need to give multiple copies to 39 people. That’s the bundle. I suspect that there’s a 40 degree of superfluity in those but my instructors are being 41 very scrupulous and careful, and I will, Madam Associate, 42 if I can trouble you just give a copy to the witness so 43 that she can look at those. I'm not sure I have got the 44 right bundle for a start. Yes, thank you. 45 46 WITNESS: Thank you. 47 48 Just leaving the current topic briefly for a moment, 49 Ms Kox, and going back to this issue of mistakes in 50 invoices and so on, document number 14 in that bundle, is 51 that the invoice that you asked the shire to raise when you 52 realised that you had used the corporate credit card to pay 53 for some music on iTunes?---Yes, it is. 54 55 That’s an example of the process that you followed in a 56 situation when you made a mistake at the time?---Yes. 57 58

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Thank you. The last group of documents there are 1 performance reviews for Stephen Kox by you and for Clif 2 O’Toole by you?---Yes. 3 4 Just remind us who Clif was?---Clif O’Toole is the heliport 5 coordinator. 6 7 So he was your other direct report?---Yes. 8 9 When your husband’s job required performance reviews 10 annually, who in the Exmouth Airport or in the shire had 11 the capacity to provide those performance reviewss? 12 ---Only myself. 13 14 Why do you say that?---Because nobody else is aware of the 15 functionality of the job. 16 17 When it was first obvious that you would be doing these 18 performance reviews and that the person you were reviewing 19 was your husband, did you raise that with the CEO? 20 ---Yes, I did. 21 22 What did you say to him?---I said to him, you know, “How am 23 I supposed to do this? My husband, what do I do? Can I 24 still do this?” and I was advised, yes I could, because 25 he’s the final sign-off. 26 27 Who was the final sign-off?---The CEO is the final 28 sign-off. 29 30 All right, so you understood that the performance reviews 31 that you did would then be scrutinised by the CEO? 32 ---Absolutely. 33 34 When you did your performance reviews - - - 35 36 THE COMMISSIONER: Although the CEO wouldn’t have any 37 knowledge either, because you were the only person with the 38 knowledge. 39 40 YOVICH, MR: That’s true, and that may be a matter for 41 submissions, but in any case he saw them. His capacity to 42 assess their accuracy is another matter?---Yes. 43 44 Part of the performance review process in years other than 45 2012-13 was the assessment of performance bonuses and so 46 what we might do is go to document number 31 which is the 47 last in the bundle. Have you got those - that one? Go to 48 the third page of it?---Yes. 49 50 And there is a heading "Performance Evaluation"?---Mm'hm. 51 52 And then five specific categories that carried with them a 53 potential bonus?---Yep. 54 55 And some criteria for assessing that?---Yes. 56 57 It was your job to do that assessment?---Yes. 58

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1 Were the criteria for assessing it essentially objective 2 ones? In other words you had to add up days away - - -? 3 ---Yes. 4 5 - - - or incidents and so forth?---Yes. 6 7 Do we see in relation to this performance determination 8 that the second category, namely Productivity, you have 9 assessed a 50 per cent award rather than a hundred per cent 10 award?---Yes. 11 12 And the other is a hundred per cent?---Mm'hm. 13 14 What was that assessment based on?---Based on information 15 provided to me from corporate services on the number of 16 days of leave that had been taken. 17 18 So you basically had to plug in the information you were 19 given and out came the number?---Yes. 20 21 Was that essentially the way that that was assessed in 22 relation to all of these categories?---Yep. 23 24 That was something you had to do for Mr O'Toole, your other 25 report?---Yes. 26 27 Generally speaking in relation to both your performance 28 reviews of Mr O'Toole and of your husband, if you thought 29 that there were things that could have been done better or 30 needed improvement, did you say so?---Yes, I did. 31 32 Lastly on this subject, and I hope, although it's always 33 dangerous to say so, lastly overall, you were asked a 34 number of questions yesterday by counsel assisting about 35 the decision that was made in 2014 to promote your husband 36 to level 9?---Yes. 37 38 And you were shown some documentation about that?---Yep. 39 40 Tell us before I show you any more – you don't need to leaf 41 through it at the moment – how did the prospective 42 promotion of your husband come to your attention?---In my 43 performance review with the CEO, the CEO said to me that 44 the airport manager and heliport coordinator positions 45 should be going up to level 9. 46 47 So when you say your performance review, this is the CEO 48 assessing you?---Yes. 49 50 So that conversation took place?---Yep. 51 52 Was there a conversation about what needed to happen or 53 what should happen in order for that to occur?---He just 54 told me to say - in their performance reviews to let them 55 know that that's what we wanted to do. 56 57 Was that done in relation to both Mr O'Toole and - - -? 58

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---Yes. 1 2 What substantive input did you have into the making of that 3 decision?---None really. It was the CEO that said that's 4 what should happen. 5 6 All right. Did you say, "This is what I think should 7 happen"?---Yep, yep. 8 9 So if you had said, "I think this should happen," and the 10 CEO had said, "I don't," whose view would have prevailed? 11 ---The CEO's. 12 13 Was the suggestion of promoting your husband initiated by 14 you or by the CEO?---By the CEO. 15 16 And it was the same with Mr O'Toole?---Yes. 17 18 That didn't turn out to be lastly because lastly I want to 19 ask you about going back to the beginning of that – before 20 I leave that topic, that process didn't happen in 2013 21 which was the first year you did the performance review? 22 ---2013? No. 23 24 So there was no suggestion by either Mr Price or yourself 25 at the end of the first year that your husband had been 26 working that he be promoted?---No. 27 28 That came in the second?---Yep. 29 30 Going back to the beginning of your husband's employment, 31 he was initially on a probationary period?---Yes, he was. 32 33 Were you?---Yes. 34 35 Who assessed at the end of your probationary period whether 36 it should end, be extended or what?---The CEO. 37 38 Who assessed at the end of Steve's three-month probationary 39 period whether it should be extended, ended or something 40 else?---Myself. 41 42 There were three possibilities at the end of the 43 probationary period, weren't there: one was that it end 44 and he be off probation, in essence?---Mm'hm. 45 46 Another was that the probation be extended for 47 three months?---Yes. 48 49 And another was, what, that he be sacked?---I guess so. 50 51 That was a theoretical possibility?---Yep. Theoretical, 52 yep. 53 54 Who would make that decision?---Any of those? 55 56 Yes?---I make the recommendation and then it goes to the 57 CEO. 58

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1 All right. So you make a recommendation?---Yep. 2 3 And it goes to the CEO?---Yep. 4 5 Did you have a probationary assessment for anyone other 6 than Steve to do?---I’ve done them with other staff. 7 8 All right. One of the questions counsel assisting asked 9 you was that if at the end of the probation period you had 10 not recommended that the probation end - - -?---Yes. 11 12 - - - that would have resulted in a loss of income to the 13 household. If your recommendation had been that the 14 probation period extend for a further three months, what 15 would that meant for your husband’s income?---It wouldn’t 16 have changed. 17 18 All right. So if your recommendation had been that your 19 husband be sacked, that would have led to a loss of 20 income?---Yes. 21 22 All right. Just let me check through to see if there’s 23 anything else I want to ask you about. I don’t know that 24 there is but I want to be sure. Just, I suppose, in 25 conclusion, Ms Kox, what sort of hours do you work on this 26 job?---More than the 76 hours a fortnight. 27 28 In doing your job are you able to do it better, worse or no 29 differently because your husband is your immediate inferior 30 as airport manager?---I think better. 31 32 Why?---Because he brings a level of – his role around the 33 operational side of things, he has a far higher level of 34 knowledge in that space than what I do in some areas. 35 36 Thank you, Ms Kox. Those are the questions I have. 37 38 THE COMMISSIONER: Is there anything you wish to further 39 examine on? 40 41 POWER, MR: I am tempted to deal with one matter, 42 commissioner, but I am going to resist the temptation 43 because the documents speak for themselves. 44 45 THE COMMISSIONER: Very well, and indeed they do. Thank 46 you, Ms Kox, for your attendance at this examination. You 47 are now discharged from your summons and free to go? 48 ---Thank you. 49 50

(THE WITNESS WITHDREW) 51 52 THE COMMISSIONER: We will proceed with the next witness 53 but I will take a short adjournment. 54 55

____________________ 56 57 58

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KOX, STEPHEN JOHN called: 1 2 THE COMMISSIONER: Please be seated. 3 4 THE ASSOCIATE: Mr Kox, this is a continuation of public 5 examinations for the purpose of an investigation under the 6 Corruption, Crime and Misconduct Act 2003. The scope and 7 purpose of the commission’s investigation is to determine 8 if any public officer at the Shire of Exmouth may have 9 engaged in serious misconduct in the performance of their 10 functions of office or employment. Before we begin I need 11 you to do the affirmation please. 12 13 KOX, STEPHEN JOHN affirmed: 14 15 THE COMMISSIONER: I appoint Mr Power and Ms Chung as 16 counsel assisting. Mr Power will ask questions on my 17 behalf. Yes, Ms Richards? 18 19 RICHARDS, MS: Commissioner, I seek leave to appear for 20 Mr Kox. 21 22 THE COMMISSIONER: Do you need leave? 23 24 RICHARDS, MS: I understand that it’s at the discretion of 25 the commission. 26 27 THE COMMISSIONER: Leave is granted. 28 29 POWER, MR: Thank you, commissioner. 30 31 Mr Kox, your full name please?---Stephen John Kox. 32 33 You’re employed by the Shire of Exmouth?---Correct. 34 35 Are you employed by the shire as the airport manager? 36 ---Correct. 37 38 When did you begin in that position?---2012. 39 40 Would you accept that you commenced in that role on or 41 about 22 October 2012?---Yes. 42 43 As the airport manager are you part of a team at the 44 airport that manages the airport’s functions?---We are all 45 a team. There’s the executive manager, airport manager and 46 staff below. 47 48 So to whom do you report?---Executive manager of aviation. 49 50 Is that the executive manager of aviation services?---Yes. 51 52 Who is that?---Jenny Kox. 53 54 Jenny Kox is your wife?---Yes. 55 56 Do you know the chief executive officer?---Yes. 57 58

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Mr Bill Price?---Correct. 1 2 For how long have you known Mr Price?---2005. 3 4 Where did you meet him in 2005?---Cocos (Keeling) Islands. 5 6 What were you doing there?---I was the airport manager. 7 8 Do you know what position he held at that time?---CEO. 9 10 So he was the chief executive officer of the Cocos 11 (Keeling) Islands Council was he?---Correct, yes. 12 13 Have you been in regular contact with him since that time? 14 ---No. 15 16 So how long did the two of you work together at the Cocos 17 (Keeling) Islands?---We didn’t work together at Cocos 18 (Keeling) Islands: we were just acquaintances. 19 20 As the airport manager did you have anything to do with him 21 as the chief executive officer?---Not that I can recall. 22 23 Did you see him from time to time?---Yes. 24 25 While you were on the Cocos (Keeling) Islands and while he 26 was on the Cocos (Keeling) Islands did you socialise? 27 ---Yes. 28 29 When you say that you socialised with him, what did you 30 do?---We might have had a drink together. We might have 31 had dinner. 32 33 You say you might have had a drink together and you might 34 have had dinner: did you have a drink together or not? 35 ---Yes. 36 37 Did you have dinner together?---Yes. 38 39 When you had a drink together or for that matter dinner 40 together, were there occasions when you and your wife had 41 dinner or a drink with him and his wife?---Yes. 42 43 In that time that you were on the Cocos Islands and he was 44 on the Cocos (Keeling) Islands, did you become friends? 45 ---Yes. 46 47 So how long were you and your wife and he and his wife on 48 the Cocos (Keeling) Islands for at the same time?---I’d say 49 about two years. 50 51 Do you also know a Mr Andrew Forte?---Yes. 52 53 How long have you known him?---About the same time, just 54 before the Cocos (Keeling) Islands. I still think it was 55 2005. 56 57 Where did you meet Mr Forte for the first time?---At our 58

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house in Melbourne. 1 2 Have you seen him on a regular basis since that time?---No. 3 4 Have you ever worked for Mr Forte or any of the businesses 5 that he’s involved in?---Yes. 6 7 When was the first time when that happened?---2005 when we 8 were – we obtained the positions of airport manager at 9 Forrest Airport. 10 11 When you say “we” who is the “we” you’re referring to? 12 ---Jenny Kox, my wife. 13 14 And yourself?---Correct. 15 16 So the first time that you worked with a business that he 17 was involved in was at the Forrest Airport?---Correct. 18 19 Just to be clear about it: what was the job that you had? 20 ---Airport operations manager. 21 22 And your wife, what job did she have?---And the same. 23 24 The same job?---Yes, we both did everything. 25 26 So you were either an employee of Mr Forte or one of the 27 entities that he controlled. Is that right?---Correct. 28 29 How long did you and your wife work for Mr Forte in that 30 capacity?---About six months at Forrest. 31 32 Where did you and your wife go after that?---We were asked 33 to go to the Cocos (Keeling) Islands. 34 35 Who asked you to go?---Andrew Forte. 36 37 Did you go to the Cocos (Keeling) Islands?---Yes. 38 39 When you got there what did your wife do?---She was more 40 security. 41 42 So she was working at the airport, was she?---At the 43 airport, yes. 44 45 Like you?---Yes. 46 47 Who was your employer?---Andrew Forte. 48 49 And hers as well?---Yes. 50 51 Did you and your wife work for him or one of the entities 52 he controlled on the Cocos (Keeling) Islands until you 53 left?---Worked for Andrew Forte, yes, until we left. 54 55 When did you leave?---We were there two and a half years; 56 five, six, seven – 2008 maybe. 57 58

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In that time that you worked at the Forrest Airport and in 1 that time that you worked on the Cocos (Keeling) Islands, 2 did you come to mix with Mr Forte on a social basis?---Very 3 occasionally. 4 5 When you say occasionally, does that mean that you would 6 have dinner with him?---Yes, when we caught up. 7 8 And drinks?---Yes. 9 10 So would it be fair to say that from about the time when 11 you and your wife worked for Mr Forte at the Forrest 12 Airport, you became friends with him?---Yes. 13 14 And his wife?---Yes. 15 16 That is a friendship that has endured to the present day, 17 am I right?---It’s grown since then. 18 19 It’s grown since then? Do you believe that you’ve become 20 closer friends since then?---Yes. 21 22 You spoke about the first time that you met Mr Price and 23 you’ve told the commissioner how you became friends with 24 him. Would you say that that friendship has endured from 25 that time on the Cocos (Keeling) Islands to the present 26 day?---There was a big gap in between that I hadn’t seen 27 Bill, so that relationship has grown since we’ve been here. 28 29 In Exmouth?---In Exmouth, yes. 30 31 But even though you were not perhaps in the same geographic 32 location for a period of time, you remained friends didn’t 33 you?---With Bill Price? 34 35 Yes?---We didn’t really speak. 36 37 When you finally came back into contact again, the 38 friendship resumed?---Yes. 39 40 Would you say about Mr Price what you have said about 41 Mr Forte, namely that your friendship has grown as well? 42 ---Correct. 43 44 Would you now describe yourself and your wife, to the 45 extent that you can speak for her, as close friends of the 46 Fortes?---Correct. 47 48 And would you describe yourselves, again to the extent that 49 you can speak for her, as close friends of the Prices? 50 ---Yes. 51 52 Has that been the case, namely that you’ve been close 53 friends with these two couples, since the time that you 54 started living and working in Exmouth?---Correct. 55 56 Do you regard yourself, Mr Kox, as having the kind of 57 friendship with Mr Price where you’re able to speak to him 58

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on a one-to-one level?---Yes. 1 2 About matters of personal concern to you?---Yes. 3 4 About your anxieties?---Yes. 5 6 About your worries?---Yes. 7 8 And he speaks to you about those matters too?---Yes. 9 10 It would be wrong to leave your wife out of this. I assume 11 that you’ve also observed her speaking to Mr Price in much 12 the same way about the same matters?---Yes. 13 14 Do you have that sort of relationship with Mr Forte as 15 well?---Yes. 16 17 And your wife, does she have that sort of relationship with 18 Mr Forte?---Yes. 19 20 Has that been the case at least since your living and 21 working in Exmouth?---Yes. 22 23 So these three couples – yourself, the Fortes and the 24 Prices, you’re pretty close friends?---Yes, we are. 25 26 Pretty tightknit?---We’re friends. 27 28 All right. Madam Associate, would you please bring up 29 document 0933^ for me. 30 31 I’m going to put a document up on the screen for you, 32 Mr Kox, so you know what I’m talking about. What I’m 33 showing you, Mr Kox, is a letter. You can see that. You 34 see it’s a letter from the Shire of Exmouth and you can see 35 it’s addressed to you, dated 15 August 2012. Do you see 36 that in the top left-hand corner as you look at the 37 screen?---Yes. 38 39 You can see beneath your name “Dear Stephen” the heading 40 Employment Airport Manager. If you then go down about five 41 or six lines you can see the word “commencement”. Do you 42 have that?---Yes. 43 44 Then across to the right of that you can see some words 45 written, “Monday, 29 October” with the 29 struck out and 46 “22” put above it, and then the number 2012?---Correct. 47 48 So even without showing you the rest of this document you 49 appreciate that what I’m showing you is your letter of 50 employment?---Yes. 51 52 I now want to take you to a part of this letter on page 2, 53 about halfway down the page. Before I ask you questions 54 about this let me just confirm a few things with you. When 55 you got this letter I assume you read it?---Yes. 56 57 I assume you read it carefully?---I would like to think so. 58

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1 Because this was something you were going to be asked to 2 sign and it would be your contract of employment. Am I 3 right?---Yes. 4 5 And that’s a good enough reason to read it carefully and 6 make sure you understand everything on it, isn’t it?---Yes. 7 8 If you look down then, you will see a heading Further 9 Information on Conditions of Employment. Have you got 10 that? It’s towards the bottom of the screen?---Yeah, two 11 lines of that. 12 13 That’s all right. I will get Madam Associate to bring it 14 up a little on the screen so you can the whole of the 15 paragraph with the heading Code of Conduct. Have you got 16 that now?---Yes. 17 18 Take a moment to read it please?---Okay. 19 20 Now, when you read this, before you signed it, you would 21 have understood that the obligation set out in the first 22 sentence of that paragraph applied to you. Am I correct? 23 ---Yep. 24 25 And it’s always been your understanding, hasn’t it, that 26 the shire’s code of conduct applies to you?---Yes. 27 28 That means, of course, that you must follow the code of 29 conduct. Do you understand that to be the case?---Yes. 30 31 Then go, Madam Associate, please to page 3 of this 32 document. Scroll down please, Madam Associate, and pause 33 there. 34 35 I’m now drawing your attention, Mr Kox, to the final part 36 of this letter on page 3, and you can see there down at the 37 bottom that there is a signature at the very bottom 38 left-hand corner as you look at it. That’s yours? 39 ---Correct. 40 41 Before you signed this part, of course, you read it very 42 carefully, didn’t you?---Yes. 43 44 And this is your letter of employment as the airport 45 manager, isn’t it?---Yes. 46 47 Please take that down, Madam Associate, and would you 48 please then bring up for me document number 0747^. 49 50 I’m now going to ask Madam Associate just to scroll down a 51 little so you can see what is written - thank you. You can 52 see that what I’m showing you now is the front page of what 53 is described as the Shire of Exmouth’s code of conduct for 54 elected members, councillors and staff. Do you see that? 55 ---Yes. 56 57 And the date you can see underneath that is March 2016? 58

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---Yes. 1 2 I will take you to parts of this document in a moment, but 3 when I asked you a question earlier about the code of 4 conduct referred to in the letter of employment that you 5 signed, this is the code of conduct referred to in that 6 letter, isn’t it?---Yes. 7 8 It’s a later version obviously but you know as an employee 9 of the shire that over time there have been a number of 10 different versions of the code of conduct, and whichever 11 version exists is the version that applies to you. Do you 12 accept that?---Yes. 13 14 I want to now take you to a passage in this. Madam 15 Associate, would you please take us to page 4. Scroll down 16 a bit further for me. Thank you very much. 17 18 Mr Kox, I am showing you part of this code of conduct, and 19 you can see from what’s about a third of the way down from 20 the top of the screen as you’re looking at it there’s a 21 heading Conflict and Disclosure of Interest?---Yes. 22 23 And under the heading 2.1 Conflict of Interest it reads and 24 I read it to you verbatim: 25 26

Council members, committee members and staff will 27 ensure that there is no actual (or perceived) 28 conflict of interest between their personal interests 29 and the impartial fulfilment of their professional 30 duties. 31

32 Of course as an officer and employee of the Shire of 33 Exmouth this is a requirement with which you would be 34 familiar. Am I correct?---Yes. 35 36 Where it speaks there about staff, you understand that 37 applies to you don't you?---Yes. 38 39 And where it says that you, as a staff member, will ensure 40 there is no actual or perceived conflict of interest, you 41 can appreciate, can't you, that it is there talking about 42 two things and let me put them to you to see if you accept 43 them. The first is that you must ensure that there is no 44 actual conflict of interest and the other part of this that 45 is being spoken about here is that there should not be 46 anything seen, capable of being seen, as a conflict of 47 interest. Do you understand the distinction?---Yes. 48 49 When it talks about a conflict of interest between personal 50 interests and the impartial fulfilment of the staff 51 member's duties - it's in the next part of that sentence 52 I'm directing your attention to – what do you think that 53 means?---Not to gain anything for my personal use from 54 working where I am. 55 56 Do you think it means anything more than that?---I'm not 57 sure. 58

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1 Is this – may I call this a rule?---If you wish. 2 3 Is this rule not telling you this: that you must not put 4 yourself at least in a position where others might think by 5 looking at what they see that there is a conflict of 6 interest between your personal interests and what you must 7 do or not do - - -?---Yes. 8 9 - - - as an officer and employee of the shire?---Yes. 10 11 Is that how you read this?---Okay, yes. 12 13 That's one interpretation, isn't it? Am I right?---Yes. 14 15 And you have always understood as long as you have been an 16 employee of the shire - that is, that that interpretation 17 applies to you?---Yes. 18 19 Would you then go please down to the subparagraph which is 20 (c)? That's further towards the bottom of the page. Do 21 you see that? So go down towards the bottom third of the 22 screen and you can see - - -?---Yes. 23 24 I read it to you verbatim, it reads: 25 26

Council members, committee members and staff who 27 exercise a recruitment or other discretionary 28 function will make disclosure before dealing with 29 relatives or close friends and will disqualify 30 themselves from dealing with those persons. 31 32

I don’t want to at this stage focus on that aspect of 33 recruitment but you can see from reading this, that another 34 obligation on staff employed by the Shire of Exmouth is 35 that if they're going to exercise a discretionary function, 36 in other words a function which requires the making of a 37 choice, they should, first of all, disclose that in the 38 case of relatives or close friends and, secondly, that they 39 should disqualify themselves?---Okay. 40 41 Do you read it that way?---Yes. 42 43 Your wife is the manager to whom you report at the 44 airport?---Correct. 45 46 There's no-one between the two of you?---No. 47 48 From time to time she is, would you agree, required to 49 exercise a discretionary function in respect of you?---Yes. 50 51 And to give that some mete, one of the examples of that 52 would be she is from time to time required to review your 53 performance, isn't she?---Yes. 54 55 Another example of that is she is from time to time 56 required to consider whether you should be given a pay 57 increase?---Yes. 58

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1 Another example of a discretionary function that she 2 exercises is whether or not you should be promoted to one 3 level above where you are?---Yes. 4 5 So a promotion?---Okay. 6 7 And the team at the airport, it’s a small team, isn’t it? 8 ---Correct. 9 10 And if you wanted to know what was going on at the airport, 11 there would be little point asking the people at the 12 shire’s office? You need to ask the people at the airport, 13 don’t you?---Yes. 14 15 So whether or not someone at the airport, be it the most 16 junior employee at the airport or one of the mangers at the 17 airport, is doing their job well or not well, you really 18 need to ask someone at the airport, don’t you? 19 ---Yes. 20 21 Because you can’t really count on someone at the shire’s 22 offices to tell you that?---Correct. 23 24 So in your case, whether you’re doing your job well or not 25 is something that you would have to make inquiries about 26 from the people at the airport? Am I right?---Yes. 27 28 And the person who would make that assessment of you in 29 your job at the airport would be Jenny, your wife?---Yes. 30 31 So her recommendation about what should happen to you in 32 your employment is very important, isn’t it?---Yes. 33 34 Because if, God forbid, she were to recommend that you not 35 get a pay rise, then it’s unlikely you would get one? 36 ---That’s correct. 37 38 And if, God forbid, she were to not recommend that you 39 would get a promotion, you probably wouldn’t get one? 40 ---That’s correct. 41 42 So even though the ultimate decision-making power might lie 43 somewhere else, the actual decision about what happens to 44 you in your employment is one that is made by your wife, 45 Jenny?---Yes. 46 47 Over the years, she of course, as your direct manager, has 48 made a number of decisions concerning your employment, has 49 she not?---I suppose, yes. 50 51 She has made decisions about whether you should be 52 promoted?---Okay. 53 54 Do you agree or not?---Yes. 55 56 You don’t have to if you don’t want to?---No, it’s okay. 57 58

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And she has made an assessment about whether you should get 1 a pay rise?---Yes. 2 3 And about whether you should get leave?---Yes. 4 5 So she is in that position where she makes decisions that 6 have a direct impact on what happens to you and your 7 employment?---Yes. 8 9 And it would be artificial, wouldn’t it, to look at this 10 situation without taking account of the fact that, of 11 course, the two of you live under the one roof?---Okay. 12 13 Do you agree with that?---Yes. 14 15 Because if you got a pay rise, that would go into the 16 household’s income, wouldn’t it?---Yes. 17 18 And if you didn’t, then you would miss out on that extra 19 money?---So be it. 20 21 Yes; so decisions that are made by your wife about your 22 employment have a direct impact on the household’s income? 23 ---Yes. 24 25 Madam Associate, would you please go to page number 7 of 26 this document. 27 28 I want to show you now, Mr Kox, another part of this 29 document. If you need to take the time to read it, please 30 just say so and you will be given the time - would you 31 please go down to the section headed number 4, Madam 32 Associate; just put that whole section up. Thank you. 33 34 You can see here that this is a part of the code that deals 35 with the conduct of council members, committee members and 36 staff. Do you see that?---Yes. 37 38 I’m directing your attention to the part under the heading 39 4.1 Personal Behaviour. Just take a moment to read that to 40 yourself?---Okay. 41 42 You can see that one of those obligations in 43 subparagraph (4)(a)(i) is that "taff will act and be seen 44 to act properly and in accordance with the requirements of 45 the law and the terms of this code". You understand what 46 that means, don’t you?---Yes. 47 48 I have just taken you to a part of this code which talks 49 about conflicts of interest?---Okay. 50 51 You will recall from the part I took you to that, where a 52 staff member is faced with a conflict of interest involving 53 a family member, then one of the things that must happen is 54 there must be a declaration of that conflict of interest. 55 Remember that?---Yes. 56 57 And the other thing that must happen is that person must 58

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disqualify himself or herself. Do you remember that part? 1 ---Yes. 2 3 So where it says here that staff must act and be seen to 4 act properly and in accordance with the requirements and 5 terms of this code, what that means is that a staff member, 6 you or your wife for that matter, faced with a conflict of 7 interest involving a member of the family, must do two 8 things: first, declare that conflict of interest and, 9 secondly, disqualify himself or herself from acting? 10 ---Okay. 11 12 Do you understand that?---Yes. 13 14 Then if you look at 4.1(a)(ii) you can see another 15 obligation that is imposed on members of staff, so this is 16 you and your wife, is that you "must perform your duties 17 impartially and in the best interests of the local 18 government uninfluenced by fear or favour"?---Mm’hm. 19 20 It talks there about being uninfluenced by fear or favour. 21 Do you understand that to mean, for example, uninfluenced 22 by favouring friends?---No. I don’t understand it. 23 24 You don’t understand that. All right. Do you understand 25 the bit which says that staff members must perform their 26 duties impartially?---Yes. 27 28 What do you take that to mean?---No bias. 29 30 Okay. And where it says, “And they must perform their 31 duties in the best interest of the local government,” what 32 do you think that means?---Do everything we can for the 33 local government. 34 35 Do you think in a conflict of interest situation where you 36 are on the one hand confronted with personal interests and 37 on the other hand presented with the shire’s interests, 38 this part means you should always prefer the shire’s 39 interests firstly?---Yes. 40 41 Is that how you read that?---Yes. 42 43 Look at the next one, 4.1(a)(iii). It says there that 44 "staff will act in good faith, honestly, for the proper 45 purpose and without exceding their powers in the interests 46 of the local government and the community". You understand 47 what that means, don’t you?---Yes. 48 49 And when you look at all of these three requirements 50 together, it’s making it pretty plain, isn’t it, that if 51 you are in a conflict of interest situation, for example, 52 you must always put the shire’s interests ahead of your own 53 personal interests?---Yes. 54 55 Madam Associate, would you please go to the next page. 56 I want to show you something in section 4.2. You can see 57 the heading is Honesty and Integrity?---Okay. 58

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1 Do you think as an officer of the shire integrity is an 2 important quality to have?---Yes. 3 4 If you look at subparagraph (b) you can see there it 5 imposes a requirement on the staff to “bring to the notice 6 of the mayor or the president” – and the president in this 7 case, of course, is Mr Shales, isn’t it?---Yes. 8 9 “any dishonesty or possible dishonesty on the part of any 10 other member and in the case of an employee to the chief 11 executive officer”?---Yes. 12 13 Do you understand what that means?---If you see anything, 14 report it. 15 16 Yes. And does it tell you in respect of which employees 17 you need to do that, which you should leave out or is it in 18 respect of all employees?---All. 19 20 Right. So if you saw, for example, possible dishonesty in 21 someone who was working under you at the airport you would 22 need to report it?---Correct. 23 24 You understand that. And if you saw some dishonesty, for 25 example, in someone above you at the airport, you would 26 need to report it?---Correct. 27 28 In the time that you have been reporting to your wife as a 29 manager at the airport, you are aware, aren’t you, that she 30 has been making decisions that affect your personal 31 welfare?---Yes. 32 33 And your income?---Yes. 34 35 And your status?---Yes. 36 37 And on any of those occasions has she said to you, “Steve, 38 I cannot make this decision. I’m in a conflict of 39 interest. I must disqualify myself”?---No. 40 41 She may not have said those exact words to you but has she 42 ever made it known to you that she cannot make a decision 43 concerning your employment because she’s in a conflict of 44 interest?---No. 45 46 Are you aware of any occasion when she has disqualified 47 herself from making a decision where there is a conflict of 48 interest?---I’m unsure on that one. 49 50 But you appreciate that there is a conflict of interest in 51 your reporting directly to her at the airport, don’t you? 52 ---I don’t know how to answer that one. 53 54 Just truthfully would be good?---Yeah, well, yes. 55 56 Let me put this hypothetical scenario to you. If you saw 57 your wife, as your manager, at the airport doing something 58

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dishonest – and I’m not saying she has or would but if you 1 saw that – your obligation would be to report it, wouldn’t 2 it?---Correct. 3 4 Do you think that would be a difficult thing to do?---Yes. 5 6 And the reason it would be difficult to do is you are in 7 that conflicted position, is it?---Correct. 8 9 Between your personal interests on the one hand and your 10 duties and obligations as an officer and employee of the 11 shire on the other?---Yes. 12 13 And doesn’t that tell you more than anything else how 14 clearly you are in a conflict of interest position?---Yes. 15 16 Commissioner, may I move to a different matter please? 17 18 THE COMMISSIONER: You may. 19 20 POWER, MR: Thank you. 21 22 Mr Kox, who interviewed you for the job that you've got 23 now?---Andrew Forte. 24 25 Where did that happen?---Here in Perth. 26 27 When did it happen?---It would’ve been some months before I 28 took on the job, October, so from June onwards, I suppose. 29 30 Was it here or was it somewhere else?---Here in Perth. 31 32 Who was with the two of you when you were interviewed? 33 ---No-one. 34 35 After being interviewed by Mr Andrew Forte for a job with 36 the Shire of Exmouth did anyone else interview you?---No. 37 38 So the next thing that happened was you got told you had 39 the job?---Correct. 40 41 Who told you that?---I don’t recall. 42 43 Did you learn by telephone or by letter?---No; no idea. 44 45 What do you mean by no idea? Do you not recall at all? 46 ---No. 47 48 Commissioner, may I just have a moment please. 49 50 THE COMMISSIONER: You may. 51 52 POWER, MR: Commissioner, I don’t have any matters I want 53 to press with this witness. 54 55 THE COMMISSIONER: Ms Richards? 56 57 RICHARDS, MS: Mr Kox, at the time you commenced - - - 58

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1 THE COMMISSIONER: I’m sorry, I can’t hear you, 2 Ms Richards. 3 4 RICHARDS, MS: Sorry. 5 6 At the time you commenced employment with the shire was 7 your wife also employed by the shire? When did she start? 8 ---After me. 9 10 After you?---From recollection, after me. 11 12 So at the time Ms Kox was employed you were already 13 employed by the shire?---Yes. 14 15 And when you started with the shire who did you report to 16 initially?---Directly to executive manager aviation 17 services. 18 19 And who was that?---Andrew Forte. 20 21 And Mrs Kox was then subsequently employed in that role? 22 ---Sometime later, yes. 23 24 And so knowing then that you were her husband at the time 25 she was employed in that role?---I can only assume so, that 26 that was the case. 27 28 Counsel assisting just referred previously in terms of how 29 your performance was assessed and that really the only 30 people that could be in a position to assess your 31 performance in your position as airport manager were the 32 people at the airport and then Mrs Kox was then responsible 33 for your reviews?---Correct. 34 35 Were there any external measures of your performance or any 36 other assessments in terms of your functions by any 37 external bodies that would have been relevant?---The only 38 way we’ve been able to judge our performance in the 39 industry is via external auditors. 40 41 Who are they?---In this case we only have the Office of 42 Transport Security who do annual – sorry, quarterly audits 43 and they have always shown that there are no 44 non-compliances. So if we have no non-compliances we’re 45 doing a good job. 46 47 That’s what you use as a measure then?---We personally use 48 that as a measure. 49 50 In relation to the assessment process, your performance 51 reviews, did you ever ask for promotions or - - -?---No. 52 53 - - - increases? 54 55 No further questions. 56 57 THE COMMISSIONER: Mr Power, is there anything? 58

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1 POWER, MR: Nothing arising thank you, commissioner. 2 3 THE COMMISSIONER: Mr Kox, thank you for your attendance. 4 You were given a notification on your summons not to 5 disclose your evidence or the fact that you’re appearing to 6 any person. I now release you from that obligation. You 7 are free to discuss it with whomever you like?---Thank you. 8 9 You are discharged from the summons and you may leave? 10 ---Thank you. 11 12

(THE WITNESS WITHDREW) 13 14 THE COMMISSIONER: I just want to say a few words because 15 this brings to an end the public examinations. As part of 16 an ongoing investigation the commission has conducted a 17 series of public examinations to determine if any public 18 officer in the Shire of Exmouth may have engaged in serious 19 misconduct in the performance of their functions of office 20 or employment. These are now concluded. 21 22 There has been criticism of the commission in holding 23 public examinations, despite the fact that the Corruption, 24 Crime and Misconduct Act clearly allows them after weighing 25 various considerations in the public interest. The 26 commission does not fear scrutiny but welcomes it. A body 27 with the functions of the commission should be as 28 transparent as possible while maintaining due regard for 29 the infringement of people’s privacy. 30 31 A benefit of public examinations is that people can observe 32 and form their own views on the work of the commission. 33 These public examinations have allowed the people of 34 Exmouth to hear admissions by senior officers exposed, 35 including the letting of a contract for over $1 million 36 without any due diligence whatever into the financial 37 circumstances of a company with a paid up capital of $100 38 and which was only incorporated on 16 February 2016. They 39 have conceded it was not the only potential supplier. 40 41 They have seen and heard admissions by senior officers to 42 acting without authorisation to enter into that contract 43 and subsequently creating a false document which was put 44 before council to hide their actions. I should say some 45 members of council because the evidence before the 46 commission is that some council members may have been aware 47 of the officers' unauthorised actions but took no step to 48 query or correct the false document. The matters just 49 outlined are not matters in contention but in the shire's 50 documents and admissions from relevant officers. 51 52 Observers will have also seen admissions by a senior 53 officer into multiple misuses of the shire credit card for 54 personal benefits. This commission reports to parliament 55 and will do so in due course. It has no power to take any 56 disciplinary or other action. 57

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In October in the public interest the commission made 1 council aware of evidence containing certain admissions by 2 a senior officer. Council has done nothing. Some 3 councillors may need to examine very carefully whether they 4 have a conflict of interest, as laid down in their own 5 adopted policy, such that they are unable to act. That is 6 a matter for them. 7 8 Only the council of the Shire of Exmouth can decide what 9 ethical standards it wants the council and its employees to 10 aspire to. Only the council can decide if and when it 11 wants to exercise governance. This examination has been 12 carried out as much for the benefit of the ratepayers of 13 Exmouth and its council as for any other purpose. It is 14 after all their shire. Whether they have found it helpful 15 is a matter for them. The commission will now adjourn. 16 17

AT 12.43 PM THE MATTER WAS ADJOURNED ACCORDINGLY 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48