National Integrity Spotlight – July 2025

In this quarterly edition of the National Integrity Spotlight, we consider significant recent updates from the NACC and the Australian Federal Police, as well as developments from various State integrity bodies.

National Anti-Corruption Commission

NACC referral update

The NACC continues to provide regular updates on its operations. As at 11 June 2025, the NACC:

• is conducting 33 preliminary investigations;
• is conducting 33 corruption investigations, which includes nine joint investigations with other agencies;
• is overseeing or monitoring 15 investigations being undertaken by other agencies;
• has six matters currently before the courts; and
• NACC investigations have resulted in eight convictions.

The NACC has also provided an update on legacy ACLEI investigations. On the commencement of the NACC’s operations, the NACC inherited 32 open referral assessments, 22 investigations, and 46 agency investigations that were subject to oversight or reporting requirements. Of these:

• four ACLEI matters remain before the courts; and
• three investigation reports have been finalised and published.

NACC makes finding of corrupt conduct in Operation Kingscliff

On 30 June 2025, the NACC published its investigation report into Operation Kingscliff, making a finding that a Senior Executive Service officer in the Department of Home Affairs engaged in corrupt conduct on multiple occasions by using her office to give her sister and her sister’s fiancé an improper benefit, and misusing public information. Operation Kingscliff marks the first investigation report published by the NACC on an investigation that was commenced and completed since the NACC commenced operations.

The referral was made to the NACC on 12 January 2024 as a mandatory referral under section 33(1) of the National Anti-Corruption Commission Act 2022 (Cth) by the Secretary of the Department of Home Affairs.

A key component of the conduct was the transfer of the official’s sister’s fiancé to the Department of Home Affairs under section 26 of the Public Service Act 1999. Specifically, the official’s action including promoting her sister’s fiancé as a candidate for a specific position within the Department of Home Affairs, speaking of him to colleagues in a positive manner, creating and approving a job requisition, and forging a witness signature on paperwork that fast-tracked employment. At no time was the relationship disclosed, and the family relationship was deliberately concealed. Separately, in a different employment process, the official provided her sister with interview questions in advance.

The NACC found that the conduct was serious due to “the seniority of the public official, the deception involved and the significant benefits of securing a public service role” and systemic as the behaviours were repeated, and that “nepotism, cronyism and undeclared conflicts of interest in APS recruitment are an area of widespread concern.”

While the public official has resigned from their position, the NACC noted that it would otherwise have recommended that her employment be terminated.

In its report, the NACC made the following recommendations to reduce the risk of similar misconduct, deter future occurrences, and increase timely detection:

1. Reduce the risk of undisclosed conflicts of interest in recruitment by requiring persons involved in recruitment to declare relationships or associations with any applicants, and providing training for employees engaged in recruitment on how to identify, declare, and manage conflicts of interest;
2. Mitigate the risk of improper disclosure of interview questions by ensuring that panel members understand the importance of limiting access to interview questions, and restricting online access to questions, including in completed recruitment processes, to those with a legitimate need to know; and
3. Specific updates to Department of Home Affairs policies relating to conflicts of interest.

The NACC has also prepared and released a Case Study on Operation Kingscliff.

ABF officer sentenced

On 17 April 2025, a former Australian Border Force officer was sentenced for offences relating to the provision of false or misleading information, undisclosed criminal associations and accessing the ABF systems without authorisation on multiple occasions. This followed Operation Harvey, an investigation jointly conducted by the former ACLEI (and then the NACC) and the Department of Home Affairs.

The prosecution of the officer was conducted by the Commonwealth Office of the Director of Public Prosecutions and resulted in the entering pleas of guilty to:

• providing false or misleading information to the Commonwealth, or for the purposes of complying with a law of the Commonwealth, pursuant to section 137(1) of the Criminal Code (Cth) (the Code);
• accessing restricted data without authorisation pursuant to 478.1(1) of the Code; and
• making a false statutory declaration pursuant to section 11 of the Code.

The officer was released on the condition that he enter into a recognisance of $1,500 and be of good behaviour for a period of nine months.

Settlement between Ms Brittany Higgins and the Commonwealth

On 12 June 2025, the NACC released a statement on the settlement reached between the Commonwealth and Ms Brittany Higgins, given the broad public scrutiny and speculation as to the involvement of corrupt conduct in the settlement.

The NACC stated that multiple referrals were received relating to Ms Higgins’ settlement and that an extensive preliminary investigation, involving the issuance of multiple notices to relevant parties and the review of thousands of documents had occurred, with no corruption issue having been identified.

Specifically, the NACC noted that:

• documents produced indicated that decisions made relating to the settlement were based on advice received from independent external solicitors as well as experienced junior and senior counsel;
• initial advice received prior to the May 2022 election was not materially different, nor was the approach to the matter, following the change in government;
• there was no inappropriate intervention in the process by or on behalf of any Commonwealth ministers, and the settlement was approved by the then Attorney-General in accordance with Department advice;
• the settlement was less than the maximum amount recommended by the external independent legal advice; and
• the evidence reflects that the process was based on independent external legal advice and no inappropriate intervention took place.

Operation Elektra investigation report released

On 11 June 2025, the NACC published its investigation report for Operation Elektra, which was a joint investigation undertaken by the former ACLEI, the Department of Home Affairs, and Australian Federal Police and focused on Serco officers providing telephone services and official information to detainees in immigration detention centres.

The NACC made two findings of corrupt conduct, with the investigation resulting in two charges and one conviction.

Former immigration officer sentenced for approving family member’s visa

The NACC announced on 30 June 2025 that a former immigration officer at the Department of Home Affairs, was sentenced for abuse of process and unauthorised access of the Department’s computer systems.

The officer’s conduct the subject of the convictions was:

• between 2016 and 2021, she accessed the records of 17 individuals, including her friends and associates, on 1,164 occasions. For this, she pleaded guilty to one count of Unauthorised Access to Restricted Data, contrary to section 478.1(1) of the Criminal Code (Cth) (Code); and
• in November-December 2019, she approved her brother-in-law’s visitor visa application, following its initial refusal. For this, she pleaded guilty to one count of Abuse of Public Office, contrary to section 142.2(2) of the Code.

The officer was sentenced to an aggregate term of eight months imprisonment, with immediate release on the condition she enter a recognisance of $10,000 to be of good behaviour for 12 months.

The conviction stems from Operation Carbunup, a joint investigation by the Department and taken over by NACC from the ACLEI.

Victoria Independent Broad-based Anti-Corruption Commission (IBAC)

Further charges in Operation Perseus

On 20 May 2025, the IBAC indicated that a further four people have been charged as part of Operation Perseus. These charges follow the 28 people charged in January 2025 and six people charged in 2024. The four people charged are not Victoria Building Authority (VBA) employees and were scheduled to appear at the Melbourne Magistrates’ Court on 30 May 2025.

Annual snapshot of independent police oversight role

On 3 April 2025, the IBAC released its annual snapshot on its oversight of the police, providing an update on police misconduct complaints and notifications received by the IBAC, as well as information on the IBAC’s police investigations, reviews, recommendations, compliance audits and prevention initiatives.

Key observations indicate that in 2024, the IBAC:

• made 32 preliminary inquiries and investigations were commenced, four of which were initiated by the IBAC’s own motion;
• finalised 30 preliminary inquiries and investigations;
• 64 per cent of all complaints received by the IBAC related to Victoria Police;
• assessed a total of 3,016 allegations about Victoria Police;
• received 2,249 complaints and notifications received about Victoria Police;
• received 311 serious incident notifications, which includes any police contact that results in death or serious injury;
• made 17 new recommendations; and
• assessed single-incident complaints and notifications relating to Victoria Police 56 days faster than the IBAC’s normal assessment process, due to the creation of a dedicated team.

New South Wales Independent Commissioner Against Corruption (NSW ICAC)

Public inquiry into allegations concerning school infrastructure

On 2 April 2025, the NSW ICAC announced that it would commence a public inquiry as part of their ongoing operation, ‘Operation Landan’. Operation Landan is the NSW ICAC’s investigation into allegations against former School Infrastructure NSW (SINSW) chief executive, and other SINSW staff and contractors.

The NSW ICAC’s public inquiry ran from 5 May 2025 until 25 June 2025, and was presided over by Commissioner Paul Lakatos SC.

As part of Operation Landon, the NSW ICAC is investigating concerns of whether between 2017 and 2024, the former chief executive and SINSW staff or contractors failed to fully exercise their official functions by:

• subverting proper recruitment practises;
• unjustly and improperly awarding contracts; and
• misallocating funds reserved from school projects;

to favour and benefit the individuals’ friends and business associates.

The NSW ICAC is also investigating whether the former chief executive and another officer, among others, dishonestly used their official function at SINSW to take reprisal action against staff following receipt of public interest disclosures or complaints.

Further details and transcripts of the ongoing investigation are available on ICAC Operation Landan page.

Gamage v Riashi [2025] NSWCA 84

Background

In October 2011, the Respondent (an officer of the NSW ICAC) issued 12 court attendance notices (CANs) relating to offences allegedly committed by the Applicant. Nine of the CANs related to offences under the Crimes Act 1900 (NSW) and three related to allegedly corrupt conduct under the Independent Commission Against Corruption Act 1998 (NSW) (NSW ICAC Act).

The Applicant sought leave to appeal to the NSW Court of Appeal on the issue of whether the NSW ICAC officer had the power to issue the CANs. The Local Court, and on appeal, the NSW Supreme Court, had previously rejected the Applicant’s challenge to the Respondent’s power.

Decision

The NSWCA granted leave to appeal and upheld the appeal in part. The Court held:

• that the application raised issues of public importance which remained unresolved;
• because the CANs were not signed by a Local Court registrar (they were signed by the Respondent), the Respondent could only have commenced proceedings as a “public officer”; and
• the respondent was “acting in an official capacity” only if it were within the powers and functions of the NSW ICAC to prosecute for offences. The presumption that a public officer acting in an official capacity is a question of fact, not of law, and does not operate in circumstances where the NSW ICAC’s powers do not extend to the institution of criminal proceedings.

The NSW Court of Appeal held that an officer of the NSW ICAC did not have the power to issue Court Attendance Notices under the Crimes Act 1900 (NSW). The nine CANs that were issued under this Act were set aside. However, The NSW Court of Appeal held that the officer did have the power to issue court attendance notices under the NSW ICAC Act. The three CANs that had been issued pursuant to the NSW ICAC Act were upheld. The Court noted that offences created by the ICAC Act are protective of the “integrity” of the investigative processes of the NSW ICAC. Taking steps towards protecting this integrity falls within the scope of the incidental powers of the NSW ICAC, under s 19(1) of the NSW ICAC Act.

To be considered a public Officer, the Respondent had to be “acting in an official capacity”. This would require the Respondent to be acting in his official capacity as a NSW ICAC officer, and exercising the powers and functions of the NSW ICAC to prosecute for offences.

The Court determined that instituting a criminal prosecution was not incidental to the functions of the NSW ICAC, and therefore that the NSW ICAC does not have the power to prosecute for corrupt conduct. This was because:

• the relevant provisions of the NSW ICAC Act do not contain any express function or power involving prosecution of criminal offences; and
• the legislative objects and principal functions of the NSW ICAC are to investigate, communicate appropriate authorities about, and take steps to limit opportunities for corrupt conduct.

Report on the ways in which corrupt conduct arises

On 25 June 2025, NSW ICAC released a report entitled ‘Coerced, Compromised or Groomed – How People Get Drawn into Corrupt Conduct’. The report explores how people, despite their initial instincts, can be manipulated into corrupt acts; how public officials may be targeted; and how to minimise risks related to coercion and grooming.

Key observations include:

• new technologies such as social media, smartphones and artificial intelligence have changed how people are coerced into corrupt conduct. For example, it is relatively straightforward to create deepfakes using artificial intelligence from images obtained on social media. As a result, cybercrime has become more common and sophisticated. The risk of foreign interference has also grown, and is being helped by technological advancements;
• public officials commonly targeted for manipulation include elected officials, their staff and people close to them, senior public service executives, officials with access to sensitive information, academics and university administrators, and sport administrators;
• types of manipulation can include the use, or exploitation of, gifts with an expectation of reciprocity, flattery, power imbalances, blackmail and sources of compromise, such as gambling, romance, drugs and alcohol; and
• to help combat manipulation, agencies should educate staff and disrupt relationships by rotating staff, requiring staff to take leave, have staff work in pairs or small groups for high-risk tasks, and using a shared mailbox where appropriate.

NSW ICAC to commence public inquiry into Operation Wyvern

On 23 June 2025, the NSW ICAC announced a public inquiry as part of Operation Wyvern into the conduct of Transport for NSW employees (TfNSW). The investigation is tasked with determining whether, since 2012, TfNSW employees partially and/or dishonestly exercised official functions by awarding contracts to, or favouring, companies on certain TfNSW panels in return for benefits.

Chief Commissioner the Hon John Hatzistergos AM will preside at the public inquiry, and Counsel Assisting the Commission will be Mr Rob Ranken SC and Ms Gráinne Marsden of Counsel. The public inquiry will begin on Monday 14 July, and is expected to be heard over six weeks in NSW ICAC’s offices in Sydney. Members of the public can watch the hearings online, or in person at NSW ICAC’s offices.

Operation Mantis learnings

Following the NSW ICAC’s report on Operation Mantis (which we canvassed in the May 2024 edition of the National Integrity Spotlight), the NSW ICAC has been implementing lessons and recommendations from the investigation as part of its education function.

Specifically, the NSW ICAC highlighted the following practices as contributing to corruption risks:

• specifically in recruitment practices: inadequate employment screening for high-risk roles, insufficient data on contingent workforce, and a lack of recruitment records, and improper assessment of outsourced arrangements; and
• specifically in procurement and contracting practices: inadequate planning for capital works projects, failure to conduct due diligence on contractors, lack of information security, and unmanaged conflicts of interest.

South Australian Independent Commission Against Corruption (SA ICAC)

Evaluation of SAFECOM

On 3 April 2025, the SA ICAC tabled its report entitled ‘Evaluation of SAFECOM and the Country Fire Service, Metropolitan Fire Service and State Emergency Service on the management of conflicts of interests’. SAFECOM is the South Australian Fire and Emergency Services Commission, which supports the SA Country Fire Service (SACFS), SA State Emergency Service (SASES), SA Metropolitan Fire Service, and Alert SA.

In recent years, all four emergency services the focus of the report were found to have taken positive steps to improve their management of conflict of interests, including the endorsement of a Conflict of Interest and Disclosure Policy and the development of a training package focused on ethical decision making.

The report identified a variety of areas that require further review or development. The 25 recommendations made in the report focused on:

• full implementation of the Conflict of Interest and Disclosure Policy followed by a review of all other procedures, internal policies and codes of conduct to ensure they comply with this policy;
• increased availability of training materials such as ethical decision-making training for staff, volunteers and contractors;
• issuing annual reminders about the management of conflicts of interest;
• implementing training on this topic for all new employees;
• ensuring clauses do not focus on the avoidance of conflict of interests and shift the focus to management of conflicts; and
• implementation of a conflicts register by each organisation.

Western Australia Corruption and Crime Commission (WA CCC)

Report into misuse of police information system

On 20 May 2025, the WA CCC published its report entitled ‘Report into the Misuse of a WA Police Information System’, concerning the conduct of a senior WA Police officer with unauthorised access to the restricted WA Police Information Management System (IMS). The WA CCC formed the view that the officer had engaged in serious misconduct, notably a breach of confidentiality by disclosing some of the information from the IMS to people outside of WA Police.

The officer, referred to in the report as Officer A, was examined by the WA CCC and admitted to accessing IMS on the occasions identified for personal rather than operational reasons and thought his unauthorised access would ‘probably’ not be caught. The report states that Officer A had disclosed official information recorded in the IMS contrary to the WA Police policy and proper purpose requirement connect with the functions and duties performed by WA Police officers.

The WA CCC highlighted that misuse of these systems poses a serious and significant risk to agency integrity and undermines public confidence. Abuses of the right to acquire, store and access personal information undermines public confidence in the integrity of the agency and impacts on operational capacity.

Report on dangers of wrongful identification in custody

On 13 May 2025, the WA CCC tabled its report entitled ‘Report on the Dangers of Wrongful Identification in Custody’ highlighting the conduct of WA Police in relation to a man given the pseudonym “Marc Smith”.

In January 2023, a person called 000 reporting that a man was stealing their boat. At the same time, the alleged offender, Marc Smith, called 000 to report that he felt threatened by the boat owner and requested police assistance. The 000 operator misspelled Marc’s name and provided the attending police officers with information associated with a different person, “Mark Smith”, who had an outstanding warrant for breach of bail.

A review by WA CCC found that the investigations undertaken by WA Police were “inadequate”. The WA CCC criticised WA Police’s failure to recognise the gravity of the situation during its initial investigation, and at the misapplication of the mistake of fact defence during a subsequent criminal investigation. The WA CCC acknowledged in the report the deficiencies in the criminal investigation have now been addressed, and that WA Police had previously been criticised by the WA CCC specifically in relation to its quality assurance processes, and an open recommendation remains outstanding.

Report of risks to confidential information control in public sector

On 8 May 2025, the WA CCC tabled its report entitled ‘Report on Risks to Confidential Information Control in the Public Sector’. The subject of the report was a former senior officer at the Department of Finance that downloaded 591 documents from the Department of Finance’s computer system onto a USB before leaving to commence a position in the private sector. The documents included personal and Department of Finance documents, including documents containing highly sensitive government information.

The WA CCC undertook an investigation, known as Operation Stremoy, in order to investigate the actions of the officer and determine whether there was evidence of serious misconduct. During the course of the investigation, the officer accepted that he downloaded the documents and explained that he had downloaded the materials to handover to the person taking over his role.

The WA CCC found that the officer’s reasons for downloading the documents were implausible, however given there was no evidence of an unauthorised purpose for which the officer downloaded the documents, no criminal or findings of misconduct were made against the officer.

While no findings of misconduct were made against the officer, the WA CCC identified the following serious misconduct risks in relation to the policies and procedures of the Department of Finance:

• the use of USBs without appropriate controls;
• the wording of the Department of Finance’s employee confidentiality agreement; and
• the lack of reminders by the Department of Finance to departing employees about ongoing confidentiality obligations.

In response to the recommendations, the Department of Finance has introduced enhanced language in their confidentiality agreements, and implemented a procedure to remind departing employees of their confidentiality obligations.

Reflections and recommendations on corruption

On 18 June 2025, the WA CCC tabled its report entitled ‘Reflections and Recommendations on Corruption’, with the report providing an account of the administration of the WA CCC over the past ten years, as well as serving as guidance for new members of the Joint Standing Committee on the Corruption and Crime Commission. The report also sets out various recommendations for changes to the functions of the WA CCC.

The key recommendations include:

1. a re-examination of the exception powers part of the Corruption, Crime and Misconduct Act and, if appropriate, implement changes to protect WA against organised crime and criminal cartels;
2. an expansion of the definition of ‘public officer’ to incorporate all persons that do work for a public authority, including those that have contracts with the government; and
3. the consideration of replacing the Corruption, Crime and Misconduct Act with a new ‘fit for purpose’ act incorporating best practice guidelines.

Queensland Crime and Corruption Commission (Qld CCC)

Updates from the Qld CCC are covered in depth in the Gadens monthly Queensland Corruption and Integrity Update publication. The most recent edition is accessible here.

Australian Federal Police (AFP)

Alleged QLD money laundering organisation dismantled after washing more than $10 million, four charged

In early June 2025, the AFP’s Criminal Assets Confiscation Taskforce, with the support of the Queensland Joint Organised Crime Taskforce, arrested four people in Queensland in relation to an alleged money laundering scheme.

The alleged money laundering scheme involved a couple’s armoured security business that washed over $10 million dollars for two clients. The two clients allegedly washed $9.5 million and $6.4 million respectively through the security company’s complex network of bank accounts, businesses, couriers and cryptocurrency accounts into their sales promotion company and classic car dealership.

The four have been charged with various offences including:

• the woman in the couple, who was the general manager of the armoured security company, has been charged with one count of dealing with the proceeds of general crime, worth $10 million or more contrary to section 400.2B(3) of the Criminal Code (Cth) (the Code);
• the man in the couple, who was the director of the armoured security company, has been charged was charged with two counts of dealing with proceeds of crime, money or property worth $1 million or more, contrary to section 400.3(2B) of the Code;
• The client, who was linked to the sales promotion company and allegedly wash $9.5 million, was charged with one count of dealing; and
• the client, who was the director of the classic car dealership and allegedly washed $6.4 million, was charged with two counts of dealing with proceeds of crime, money or property worth $1 million or more, contrary to section 400.3(2B) of the Code.

AFP provide warning and guidance relating to cryptocurrency scams

On 3 June 2025, the AFP provided a warning and guidance relating to an increase in scams involving cryptocurrency ATMs.

From 1 January 2024 to 1 January 2025, ReportCyber and the Australian Cyber Security Centre received 150 unique reports of scams involving cryptocurrency ATMs were received with losses of more than $3 million during that period. Of the 150 incidents received, the top three associated crime types were:

• investment Scams (63);
• extortion emails (35); and
• romance scams (24).

AUSTRAC data indicates that the number of active crypto ATMs in Australia has grown from 23 in 2019 to more than 1600 in 2025. In response to this growth and the increased risk of scam activity, AUSTRAC’s Crypto ATM Taskforce has endeavoured to combat the issue and help prevent further financial losses. This will include placing educational materials near crypto ATMs to help potential scam victims understand how scams work, identify warning signs, and know where to report or seek help.

Operation Beaufighter

On 16 June 2025, the AFP Crime Interrupted Podcast released an episode providing details on ‘Operation Beaufighter’, which was a joint investigation by the AFP and the ATO into Australia’s largest tax fraud. Two businessmen, known as the ‘Deal Broker’ and the ‘Trusted Elder’, set up a complex scheme to defraud Australian taxpayers of over $300 million.

In the scheme, the Deal Broker set up corporations to purchase assets that then formed lease-back arrangements. The Deal Broker then established a unit trust, split in a way that the Deal Broker and the Trusted Elder were entitled to the tax obligations of the given partnership. In order to offset the tax obligations, the Deal Broker and the Trusted Elder invested in medical intellectual property, which took advantage of the ATO’s accelerated depreciation of medical intellectual property. The AFP and AUSTRAC identified that, through their financial company, the pair had documentation to explain the movement of funds, and identified particular transactions in jurisdictions considered to be ‘tax havens.’

Ultimately, the ‘Deal Broker’ was sentenced to 14 years imprisonment on appeal and the ‘Trusted Elder’ was sentenced to 10 years and 3 months imprisonment for tax fraud and money laundering.

Investment scam centre targeting Australians is shut down

On 17 June 2025, the AFP outlined a joint investigation, known as Operation Firestorm, involving the Royal Thai Police (RTP). The investigation unveiled a sophisticated investment scam where the alleged scammers pretended to be representatives of international financial firms targeting Australians.

The investigation suggested that the investment bond scam resulted in more than $1.9 million in suspected stolen funds from Australians during the scam’s two months of operations, with the scammers reportedly posing as representatives of international financial funds selling high-yield fixed-income bonds. The boiler room utilised a detailed script that relied upon high-pressure sales tactics and documentation that had been forged. The scammers fraudulently used an authentic financial services licence to appear legitimate, and made promises that regular financial returns would be provided. It also appears that face-to-face meetings were carried out online. It is alleged that funds provided by victims were transferred into cryptocurrency before being moved into other accounts.

As part of the takedown, 13 men including five Australians were arrested and charged with offences relating to the conspiracy to commit an offence.

Government employee charged over alleged corrupt conduct

On 6 May 2025, a Sydney woman faced charges relating to alleged corrupt conduct after allegedly spending $49,000 in public monies to fund multiple personal trips overseas. It is alleged that the funds were used for flights and accommodation in connection with four personal trips overseas, that she used a falsified visa letter to support a claim that she was undertaking business travel, and that she arranged a false document for a foreign national to obtain a visa to enter Australia.

The woman was charged with two offences under the Criminal Code (Cth) and one offence under the Migration Act 1958 (Cth). The woman was granted bail and is due to re-appear before the Downing Centre Local Court on 2 July 2025.

Tasmania Integrity Commission (TIC)

On 26 June 2025, the TIC released updated guidance to Tasmanian Members of Parliament in the lead up to the 19 July 2025 Tasmanian election. Specifically, this guidance reiterates the TIC’s obligation to maintain the confidentiality of investigations, and the importance that not speculating on the identities of individuals and organisations may be. The TIC noted that confidentiality is required is not just to avoid undue damage to the reputation of a person or organisation, but also to ensure the proper preservation of evidence and ensure that the integrity of investigations is maintained.

ACT Integrity Commission (AIC)

Investigation into a procurement by the ACT Integrity Commission

In June 2025, the Inspector of the AIC issued a report entitled ‘Investigation into a procurement by the ACT Integrity Commission’. The report found that the then-CEO, known only in the investigation as Mr A, had planned to resign prior to the end of his contract to stay on at the AIC as a consultant working with the new CEO and Integrity Commissioner. Mr A, without declaring any conflicts of interest, had prepared his own procurement documents for a bespoke $150,000 consulting contract that had been made exempt from any public competitive procurement process.

The Inspector of the AIC determined that Mr A was in a position of authority and breached his statutory obligations with clear personal financial interest with respect to the proposal that he be engaged. The AIC proposed that Mr A’s appointment was arranged so he would stay on at the watchdog to manage the significant outstanding structural work as a “simple management of Mr A’s departure”. The Inspector of the AIC stated that, while there is nothing “unusual or improper” about preparing such documentation, the preparation of the documents and providing advice about the procurement involved a conflict between his personal financial interests and the functions he had as CEO.

The Inspector of the AIC made three recommendations to improve the procurement process considering this report to avoid “potential apprehended bias”, being that the AIC:

1. engage independent procurement advice as a part of any proposed single select tender process;
2. develop a procurement policy consistent with the requirements of the ACT Government procurement framework; and
3. develop and maintain a register of mandatory staff training to include training on conflicts of interest, procurement, and bias.

The AIC only accepted the third recommendation.

Management of conflicts of interest is an explicit requirement of the Integrity Commission Act 2018 (ACT) (IC Act), and section 265 of the IC Act enables an investigation into the conduct of the AIC or Commission personnel in relation to the exercise of, or failure to exercise, a function under the IC Act or another law in force in the Territory. The Inspector of the AIC concluded this report reinforcing that the Commissioner, as the decision-maker, should have ensured Mr A declared the conflict and implemented measures in place to manage the conflict.

Authored by: 

Kelly Griffiths, Partner

Daniel Maroske, Partner

Mitchell Wright, Partner

Phoebe Brosnan, Special Counsel

Anna Fanelli, Senior Associate

Kasia Jaruzelska, Senior Associate

Jacinta Beecher, Lawyer

Oskar Henderson, Lawyer

Caitlin Holmes, Lawyer

Jin Lim, Lawyer

Bailiejean Hohnberg, Graduate

Kalarni Orr, Graduate

Jonathan Kumar, Paralegal