The Age from Melbourne, Victoria, Australia • Page 1

i ACTE 90c WEDNESDAY 9 APRIL 1997 is Howard else dtowim Senator's office manager changes her story PM says new information forces him to act ir he is found guilty, he will have to resign from Parliament, forcing a byelectioh in his western New South Wales seat of Parkes. Under section 44 of the Constitution, anyone convicted of an offence punishable by a year's imprisonment cannot sit in Parliament. Mr Williams said Dr Woods would be charged under section 29D of the Crimes Act and Mr Cobb would be charged under sections 29D and 29B. Section 29D covers allegations of fraud against the Com 3rA By GERVASE GREENE, PAUL CHAMBERLIN and NIKI SAVVA, Canberra The Prime Minister, Mr John Howard, last night demanded that Senator Mai Colston stand down as Senate Deputy President and ordered a police inves-tigation into his travel allowance claims. Mr Howard moved against the senator after learning that his office manager, Mrs Christine Smith, had changed her about accepting responsibility for discrepancies in his travel claims.

The Prime Minister was told about 7.15pm of a statement by Mrs Smith and a covering letter from her solicitors. They had been sent to the Clerk of the Senate, Mr Harry Evans, earlier yesterday. Mrs Smith had written a three-page statement "clarifying and correcting" explanations given to the Senate last month, stating that sloppy bookkeeping by her had led to Senator Colston claiming $6880 in travel allowances to which he was not entitled. At a 9pm press conference, Mr Howard said he had verified the letter and statement, and that in the circumstances he believed Senator Colston should stand down as Senate Deputy President. Mr Howard said the letter .1 now wish to advise that 1 my statement was I Incorrect I wn not 1 response for preparing! allowance claim nor required to keep a record of dates of travel forTA purposes.

TtM senator always prepared his own claims. Li CHRISTINE SMITH APRIL 1997 An extract from Christine Smith's statement. Isolated: Senator Mai Colston's future as an MP Is in jeopardy after last night's dramatic announcement by the Prime Minister that And MP, former senator the Government could no longer support him. Picture: mike bowers face charges "appeared" to be genuine, saying he recognised the letterhead and the names of the law firm's principals. But Mr Douglas Colston, who works for his father, said last night he doubted that the letter was genuine.

He said his father was innocent and would not stand down. After Mr Howard's announcement, the Attorney-General, Mr Daryl Williams, instructed the Australian Federal Police to begin investigations. The Democrats leader, Senator Cheryl Kernot, said Senator Colston should take leave of absence without pay until the matter was resolved. The Opposition Senate leader, Senator John Faulkner, said the senator had to quit immediately. The dramatic announcement on Senator Colston came only hours after Mr Williams said the AFP would charge a sitting National Party MP, Mr Michael Cobb, and the former Liberal senator Dr Bob Woods for fraud over alleged misuse of allowances.

If Mr Cobb is convicted, he will be disqualified from Parliament. Similarly, if the AFP decides to press charges against Senator Colston, a conviction would force him out of Parliament and tip the balance of power against the Government in the Senate, where it has counted on his support to secure passage of key legislation. Senator Colston's defection from the ALP last year triggered a months-long attack by his former colleagues, with a suc-cesssion of allegations about rorting aimed at forcing him out of Parliament. In the letter to the Clerk of the Senate, a copy of which was obtained by The Age last night, Mrs Smith's solicitors. Bow-dens, signalled that she wanted to change her story.

"Our client wished to correct and clarify some parts of that statement," the letter said. In her new statement, Mrs Smith said that Senator Colston had asked her to accept Continued: PAGE A8 PAGE A8: Nlkl Sawas comment; The reaction; Edited text of Mrs Smiths statement; How It unfolded. according to hospital officials. The violence followed a summit in Washington between the US President, Mr Bill Clinton, and the Israeli Prime Minister, Mr Benjamin Netanyahu, who made no apparent headway towards easing tensions. A Palestinian health ministry official said Alia Hospital treated 78 people and Al-Ahli Hospital treated 25.

At least four Israeli soldiers and several Palestinian policemen were hurt by stones. The riot moved from a marketplace in the centre of Hebron to the border between the Israeli and Palestinian-controlled zones, with Palestinian police trying to block protesters from crossing the line. Marwan Kanifani, a spokesman for the Palestinian leader, Mr Yasser Arafat, accused Mr Netanyahu, who has rejected calls to halt a Jewish housing Kroject in East Jerusalem, of aving "blood on his "This is an immediate result of the policy of Mr Netanyahu," he said. AP, Reuter PAGE A9: Peace talks collapse. inbMMMlv Prawn SCfSntlll motor vehicle use and travel allowances.

Sources said the summonses were expected to be served today. "Both men will now be expected to respond to the charges in court," Mr Williams said yesterday. "Each of them is entitled to the presumption of innocence, but of course the law must take its course." Mr Williams said that as a result of the pending cases, there would be no further comment from himself, the Austra-lian Federal Police or the monwealth and carries a penalty of up to 10 years' jail. Section 29B relates to making a false representation to "obtain money or any other benefit or It carries a penalty of two years' jail. Dr Woods' solicitor, Mr Philip Gibson, told ABC radio last night that Dr Woods denied the allegations and would defend the charges.

"We are confident that the matter will be resolved in his favor," Mr Gibson said. Mr Cobb did not respond to a request for comment yester BMW saga extends to Treasurer wife Two Palestinians die as riots grip Hebron day but has previously said he was confident he would be cleared. The Age reported two weeks ago thai the Australian Federal Police had completed investigations into the pair and handed briefs to the director of public prosecutions recommending that charges be laid. Dr Woods resigned from Parliament last month after an embarrassing legal row with Ms Roxanne Cameron, a former employee of another Liberal MP. sooner IF Special By GERVASE GREENE and KAREN MIDDLETON, Canberra A federal National Party MP, Mr Michael Cobb, and a former Liberal senator, Dr Bob Woods, will today be charged with fraud over alleged rorting of their parliamentary expenses in an embarrassment for the Government.

The Attorney-General, Mr Daryl Williams, yesterday confirmed that summonses would be issued against Dr Woods and Mr Cobb over allegedly fraudulent claims in relation to Williams reported Controversial Carlton footballer Greg Williams (above) has been charged with kneeing North Melbourne's Dean Laldley during Monday night match at the MCG. The AFL Tribunal will hear the case tonight. Williams was booked on video evidence by field umpire Peter Carey. PAGE B16: Report. Arts rj.vV.

Metro- Mew a Mr Cobb and, right, Dr Woods: charges likely today. director of public prosecutions. Of the two sets of charges, those against Mr Cobb represent the bigger political problem for the Government. If "The people involved were adamant that she should accept the door prize because it had been won," Mr Stockdale said. The Opposition Leader, Mr John Brumby, mocked the Treasurer's explanation, labelling him "Alan Lucky "Some people have lucky lives, don't they," he said.

"Here he is, he goes to a fun night, or a speech night or something like that and he puts the number in there, and lo and behold, he brings it out and he wins a BMW." Mr Brumby, speaking outside Parliament, said most politicians who won prizes gave them back. He cited the former federal Treasurer, Mr Ralph Willis, who won a BMW in a raffle but, after consulting the then Prime Minister, Mr Bob Hawke, refused to accept it. A spokesman for BMW Mr John Kananghinis, said the company had not been directly involved with sponsoring the prize, which he understood had been provided by a dealership. I ft, 77031 Z'eSOOSS1 1 II By FARAH FAROUQUE The controversy over the Premier's wife and her complimentary BMW has been reignlted by revelations that Mrs Doreen Stockdale, the wife of the Treasurer, Mr Alan Stockdale, has also enjoyed free use of a BMW. The Treasurer confirmed in Parliament yesterday that Mrs Stockdale had won a year's use of the car as a door prize at a ball the couple had attended "three or four years Mr Stockdale's admission follows the political storm over BMW's use.

of the Premier's wife, Mrs Felicity Kennett, as an ambassador for the company. As part of her role, Mrs Kennett has accepted free use of a $100,000 BMW for two years. Mr Stockdale yesterday angrily rejected Opposition claims that his wife's use of the BMW "was Improper, "My wife Is not Obliged to withdraw from the human race because you attack her," he said, Mr Stockdale said the door prize at the 750-guest ball had been drawn by the TV personality Clive James. 'I JVaU Hebron, Wast Bank, Tuesday A Jewish settler with a sub-machinegun shot dead a Palestinian today in the centre of the divided West Bank town of Hebron, setting off rioting in which at least one other Palestinian was killed and more than 1 00 were injured. Palestinian police said a Jewish settler walked up to Asem Arafeh, a 24-year-old shopkeeper in Hebron, and shot him dead in what witnesses called an unprovoked incident.

But Israeli police said the settler, and a companion, both students In their 20s at a religious school, opened fire after Palestinians sprayed tear gas and hurled stones at them. Both gunmen were detained. After the shooting, hundreds of Palestinians threw stones and firebombs at Israeli soldiery, who responded with tear gas and rubber bullets during clashes lasting several hours. An unidentified teenager later died during surgery at Hebron's Al-Ahll Hospital after he Was hit in" the. head by a rubber bullet, or nammivi if 5cor.lV',r1 You can pay off your Home Loan Extra repayments welcome any time Save more interest with fortnightly repayments and Mortgage Offset Visit your nearest branch or call 131 575 VibiBws9'acccVfrcji H'aiMl'aaliw4 it; New loans only.

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