‘Bias’ finding over robodebt investigation undermines faith in anti-corruption watchdog, legal expert says

Date: 2024-10-30

The federal anti-corruption watchdog’s conflict of interest is “really concerning” because it relates to “the person at the top”, Geoffrey Watson SC, a former counsel assisting to the NSW Independent Commission Against Corruption, has said.

On Wednesday, the Inspector of the National Anti-Corruption Commission released a excoriating review of the Nacc’s decision not to investigate robodebt corruption referrals, finding it to be “affected by apprehended bias”.

The report found that the Nacc commissioner, Paul Brereton, should have “removed himself from related decision-making processes and limited his exposure to the relevant factual information”.

Six individuals were referred to the Nacc by the robodebt royal commission for potential corrupt conduct in July 2023. Eleven months later, the Nacc declared it would not pursue an investigation, due to separate public service investigations being carried out into five of them.

Brereton had appointed a delegate to decide on the six robodebt referrals due to a perceived conflict of interest, which he did declare. The Nacc noted the report contained “no finding of intentional wrongdoing or other impropriety” while conceding the public’s disappointment in the decision was “regrettable”.

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Brereton had delegated the decision not to pursue an investigation into robodebt to a deputy commissioner “to avoid any possible perception of a conflict of interest”. In August, Guardian Australia revealed this was due to a “close association” relating to Brereton’s service in the army reserve.

But the Nacc inspector, Gail Furness, found that Brereton’s “involvement in the decision-making was comprehensive, before, during and after” a meeting on 19 October 2023 when the “substantive decision was made not to investigate the referrals”.

As a result, Furness concluded that Brereton “engaged in officer misconduct” – conduct “that is not unlawful but arose from a mistake of law or fact”.

Brereton accepted that it was a “mistake” to absent himself from the meeting only at the point at which a decision was made on robodebt. “Mistakes are always regrettable, but the most important thing is that they be put right,” he said.

Watson told Guardian Australia he hoped Brereton would think carefully about his future at the integrity body.

“It’s really concerning that it’s the person at the top,” he said. “I would really hope that Mr Brereton would think carefully about whether his continuing role is in the best interests of the Nacc.

“It’s obviously damaging for the reputation of the Nacc, because the body, entrusted with overseeing and regulating conflicts of interest in the public sector, seems to have been incapable of seeing and managing the conflict within its own ranks,” Watson said.

The Greens senator, David Shoebridge, said on Wednesday “it is hard to see how the NACC can survive and retain its credibility without immediate and unambiguous accountability”.

The attorney general, Mark Dreyfus, noted the report on Wednesday but declined to make any comment on whether he still had confidence in Brereton or whether there would be any consequences after the finding.

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