ICAC finds former uni chancellor corrupt

Former university chancellor John Cassidy has been found corrupt by the ICAC for misusing confidential information in the sale of a northern NSW hotel.

The corruption watchdog found that while he was chancellor, Mr Cassidy told his business partner to invest in a pub being sold off by the University of New England in Armidale.

Mr Cassidy had access to a confidential valuation of The Tattersalls Hotel of $2.35 million.

The hotel was sold to his friend Darrell Hendry by the cash-strapped UNE student union in December 2005 for $2.65 million in a closed tender.

Mr Hendry told the corruption commission in July that the former chancellor advised him to look at the hotel as it was a good investment.

Mr Cassidy announced he was a major shareholder in January 2006, a month after Mr Hendry bought the hotel.

The former chancellor denied wrongdoing throughout the corruption investigation, but the Independent Commission Against Corruption has ruled Mr Cassidy used confidential information acquired as chancellor to end up with a stake in the pub.

He was found guilty of misusing confidential information to help Mr Hendry, hiding the business relationship between the pair and failing to disclose his material interest in the sale.

The ICAC report says the offence wasn't criminal, but involved disciplinary action, which was redundant as Mr Cassidy was no longer chancellor.