Why Albanese's dinner at a billionaire family’s home is under scrutiny

Prime Minister Anthony Albanese's attendance at a Labor fundraising dinner hosted by billionaire Phillip Lee's family is facing scrutiny due to the origins of the family's wealth. An investigation by ABC has revealed links between Mr. Lee's fortune and major corruption scandals involving his father-in-law in China.

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I was not aware of those issues.

Phillip Lee is the son-in-law of a disgraced Chinese transport official who allegedly steered expressway construction contracts at inflated prices to Mr. Lee's company in the 1990s. A Chinese court in 2005 found that the project costs were inflated by over 100 million yuan ($21 million), significantly exceeding the original price tag. Mr. Lee himself has not been accused of any wrongdoing in relation to his father-in-law's actions.

The scrutiny intensified after Mr. Lee's 25-year-old son, Felix, hosted Mr. Albanese, former Victorian Premier Daniel Andrews, and bank executives at the family's Point Piper mansion in Sydney. The luxury property, known as Mandalay, was purchased by Phillip Lee and his wife, Shi Xiaobei, for $39.9 million in 2015.

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Phillip Lee wasn't there.

Adding to the controversy, the Sydney mansion has previously been subject to asset-freezing orders. In 2021, the Australian Taxation Office (ATO) pursued the couple over claims of more than $278 million in unpaid tax. The ATO obtained court orders freezing the couple's Australian assets, including 17 properties, casino accounts, and luxury vehicles. The Lee family denied wrongdoing and later reached a settlement with the ATO, though a Commonwealth charge remains registered on their properties until the debt is fully repaid.

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It is grossly incompetent and deeply unsatisfying for the prime minister to attend a dinner at a property that is connected to a serious taxation investigation.

When questioned about the ATO allegations last month, Mr. Albanese stated he was "not aware of those issues" and noted Phillip Lee "wasn't there" on the night of the dinner. However, integrity expert Geoffrey Watson described it as "grossly incompetent" and "deeply unsatisfying" for the prime minister to attend a dinner at a property connected to a "serious taxation investigation." Watson urged the prime minister to disclose what was discussed during the dinner.

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Presumably, by having his ritzy dinner at this amazing property, there are going to be things said which are of value. Otherwise, it wouldn't be organised.