Prosecutors are no longer alleging the conduct of a Sydney businessman accused of reckless foreign interference prejudiced Australia’s national security, a court has heard.
Alexander Csergo has spent nearly a year in custody after he was charged last April.
The 56-year-old is accused of accepting cash payments while overseas to compile reports about Australia’s defence, economic and security arrangements, from two people who he suspected worked for Chinese intelligence.
But his lawyers insist he dealt only in publicly available information.
Mr Csergo’s lawyers formally entered a plea of not guilty to the charge in Sydney’s Downing Centre Local Court, where an arraignment date was set for late next month.
His lawyer, Jolan Draaisma, told the magistrate that the Crown no longer presses the allegation that Mr Csergo’s conduct “prejudiced Australia’s national security”.
“What that means is that the Crown has no evidence to support any allegation that my client has in fact prejudiced Australia’s interests,” she said outside court.
That particular was one of two elements the prosecution could pursue under the relevant legislation, but now the Crown will allege that Mr Csergo recklessly supported a foreign intelligence agency.
Accused ‘struggling’ in prison
Ms Draaisma said her client had been “struggling” while in custody.
“He has limited access to his legal representation,” she said.
“He has over 1,000 pages in the brief to try to assess and analyse, and it’s very difficult from the cell that he’s in.”
Mr Csergo’s mother, Cathy Csergo, said her son was not a criminal and looked after his country.
“My son, he’s never been a spy. He was an innocent person,” she said.
“He came home to take care of his mother and work from home.”
Ms Csergo said it was “disgusting” that the case was being brought and said she believed the proceedings were postponed because of a lack of evidence.
She said her son had been a businessman all his life.
“He went to all Europe, England, Germany, France, Spain, for his business. They sent him to America,” she said.
“He’s a businessman, he’s not a criminal. They made him a criminal.”
Worked in Shanghai during lockdown
It is alleged Mr Csergo compiled reports for two people he knew as “Ken” and “Evelyn” from a “think tank”.
The court has previously heard he was a consultant to JCDecaux and worked during the COVID-19 lockdown in Shanghai.
JCDecaux worked with China Telecom and had access to millions of Chinese consumer mobile phone records, the court heard.
But when Australia made an announcement about the suspected origins of coronavirus, relations with China plummeted.
Mr Csergo told police in an interview that he suspected somebody was trying to put “handlers” on him.
His counsel, Bernard Collaery, previously said his client was determined not to be detained and was cooperating using open source information.
The Crown has previously cited the alleged police facts in arguing against bail, saying that after returning home Mr Csergo continued to be in contact with “Ken”.
The case returns to court on April 26.