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Crossbench push to restore ICAC’s powers

South Australia’s anti-corruption watchdog could once again make public statements about ongoing investigations and refer evidence directly to the Director of Public Prosecutions, under revised ICAC legislation introduced into the Upper House this week.

Aug 30, 2024, updated Aug 30, 2024
The Upper House will consider a bill to reform the laws governing ICAC Act.

The Upper House will consider a bill to reform the laws governing ICAC Act.

But the proposed changes tabled on Wednesday by SA-Best MLC Connie Bonaros will not become law without the support of the Malinauskas Government, which is currently non-committal on calls to restore some of the ICAC’s powers.

State Parliament swiftly and unanimously passed legislation in September 2021 to curtail the watchdog’s powers, which Independent Commissioner Against Corruption Ann Vanstone KC said then was a move aimed at protecting politicians from scrutiny.

Bonaros’s amendment bill comes after the now outgoing Commissioner Vanstone wrote to some crossbench MPs in July with suggestions for legislative changes to the ICAC Act. The bill is understood to reflect the ICAC’s recommendations closely.

The amendments would reinstate ICAC’s powers to launch investigations on its own initiative, rather than on referral from the Office for Public Integrity.

It would also allow the ICAC to refer evidence from corruption investigations directly to the Director of Public Prosecutions, rather than the current requirement to go through SA Police.

This provision, introduced in 2021, has been repeatedly criticised by Vanstone, who argues that going through SA Police is inefficient, leads to a loss of working knowledge on investigations and “markedly” diminishes the chances of securing a conviction.

Bonaros’s legislation would also reinstate the ICAC’s capacity to make a public statement about an ongoing matter – a key and controversial feature of the ICAC before the 2021 changes – provided it is in the public interest and, among other considerations, has regard to “the risk of prejudicing the reputation of a person by making the statement”.

The 2021 amendments expressly prohibited the ICAC from disclosing publicly “that a particular matter is being investigated or is proposed to be investigated” until any criminal proceedings are complete.

Another controversial provision – whereby an MP or public servant can claim taxpayer reimbursement for “reasonable” legal costs incurred while defending charges of theft, deception or dishonestly dealing with documents charges stemming from an ICAC investigation – would be removed under Bonaros’s legislation.

The reimbursement provision has come under scrutiny after it was revealed that Independent MP Fraser Ellis could apply for public reimbursement of his legal fees after being found guilty in July on four counts of deception over his use of the country members’ allowance. That verdict is currently under appeal.

Under Bonaros’s changes, a public officer would still be eligible for reimbursement if they were found not guilty on charges stemming from an ICAC investigation, but not if they were convicted.

Speaking in parliament on Wednesday, Bonaros argued her reforms would “inject efficiency and effectiveness into the scheme”, later adding: “I do not know why we are so afraid of an appropriately empowered commission.”

She also expressed regret about the 2021 changes to the ICAC Act, which she did not oppose at the time.

“In September 2021, this parliament made a mistake. I made a mistake,” Bonaros said.

“The parliament’s mistake was to rush through changes to our state’s integrity laws… with inadequate time to read and understand the proposed changes.

“An extraordinarily complex legal scheme that very few of us understood in its original form was gutted off the back of what has been proven to be false narratives circulated in this place and the other.”

Bonaros also said she was “not suggesting that we revert back to the original legislation”, with the bill not going as far as reinstating misconduct and maladministration under the ICAC’s purview.

It does, however, reinstate theft of public property and deception by public officers under the definition of corruption, and restore the ICAC’s powers to investigate “incidental offences” connected to corruption.

The Malinauskas Government, which will ultimately decide the bill’s fate, has not indicated what changes to the 2021 ICAC regime, if any, it will support.

A government spokesperson said today: “The Government will consider the proposals from Ms Bonaros, along with feedback from integrity agencies and other stakeholders.”

One Nation MLC Sarah Game introduced a similar ICAC amendment bill on Wednesday and described the split between the ICAC and the DPP as “absurd”.

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Game told InDaily on Thursday that “I don’t mind whose legislation passes, I just want the best outcome, so I am working with Connie”.

The Greens also gave notice this week that they intend to introduce an ICAC amendment bill. Greens MLC Robert Simms said he hopes the crossbench “can get behind a consensus bill”.

“The Greens are keen to work across the parliament to get this right,” Simms said.

An ICAC reform bill could pass the Upper House if the Liberal Party supported it.

In July, former Opposition leader David Speirs indicated he was open to amendments, including to the taxpayer reimbursement provisions, and said Vanstone’s abrupt resignation announcement last month was a “fairly significant signal that things aren’t quite right with the ICAC legislation in the state”.

New Opposition leader Vincent Tarzia’s position on the scheme is unclear. A Liberal spokesperson said the party had not yet formed a position on Bonaros’s bill.

In July, Premier Peter Malinauskas said the 2021 changes to the ICAC Act need “to be allowed to be distilled and contemplated whether it actually needs or necessitates change”.

“We’re certainly not ruling out changes into the future that’s for sure,” he told ABC Radio Adelaide at the time.

But the Premier has also defended requiring ICAC to refer its evidence briefs to SA Police rather than directly to the DPP.

“It is the government’s view and it has been the parliament’s view that that represents a good process by ensuring that the ICAC does an investigation, hands it over to police, police have all of the resources and they perform the function on a more regular basis than the ICAC of making sure that everything is tied up in the best or fit for purpose format for the DPP to then do its piece of the work,” Malinauskas said at the time.

Independent MP Frank Pangallo, one of the architects of the 2021 reforms, also supports maintaining the separation between ICAC and the DPP.

“ICAC has a poor track record sending its briefs directly to the DPP,” he said.

“They include the failed Operation Bandicoot; Dr Jurgen Michaelis; Trent Rusby; John Hanlon and Georgina Vasilevski.

“Police are better resourced and skilled to do the job assessing the merits of an investigation.”

Pangallo said he would support “one or two” amendments to the ICAC Act but declined to reveal specifics.

He said it was “preferable” that the parliament’s Crime and Public Integrity Policy Committee, which he sits on, reviews the legislation.

“The committee will welcome submissions and input from a wide cross section of stakeholders,” Pangallo said.

“I reject any suggestion the agency is a ‘toothless tiger’ or is the ‘weakest’ in the country – whatever that means.

“It still has enormous coercive powers to investigate serious criminal corruption.”

Topics: ICAC
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