Report of the Investigation of Alleged Public Sector Misconduct in Connection with the Activities of Lobbyists

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Report of the Investigation of Alleged Public Sector Misconduct in Connection with the Activities of Lobbyists CORRUPTION AND CRIME COMMISSION REPORT ON THE INVESTIGATION OF ALLEGED PUBLIC SECTOR MISCONDUCT IN CONNECTION WITH THE ACTIVITIES OF LOBBYISTS AND OTHER PERSONS COMMENTS MADE BY MR STANLEY JOHN HALDEN TO A JOURNALIST ABOUT DISCLOSURES OF CONFIDENTIAL CABINET INFORMATION 18 March 2009 ISBN: 978 0 9805050 9 2 © 2009 Copyright in this work is held by the Corruption and Crime Commission. Division 3 of the Copyright Act 1968 (Commonwealth) recognises that limited further use of this material can occur for the purposes of “fair dealing”, for example, study, research or criticism. Should you wish to make use of this material other than as permitted by the Copyright Act 1968, please write to the Corruption and Crime Commission at the postal address below. This report and further information about the Corruption and Crime Commission can be found on the Commission Website at www.ccc.wa.gov.au. Corruption and Crime Commission Postal Address PO Box 7667 Cloisters Square PERTH WA 6850 Telephone (08) 9215 4888 1800 809 000 (Toll Free for callers outside the Perth metropolitan area.) Facsimile (08) 9215 4884 Email [email protected] Office Hours 8.30 a.m. to 5.00 p.m., Monday to Friday CORRUPTION AND CRIME COMMISSION Hon Nicholas Griffiths MLC Hon Grant Woodhams MLA President of the Legislative Council Speaker of the Legislative Assembly Parliament House Parliament House Harvest Terrace Harvest Terrace PERTH WA 6000 PERTH WA 6000 Dear Mr President Dear Mr Speaker In accordance with section 84 of the Corruption and Crime Commission Act 2003, the Commission presents the Corruption and Crime Commission Report on the Investigation of Alleged Public Sector Misconduct in Connection with the Activities of Lobbyists and Other Persons: Comments Made by Mr Stanley John Halden to a Journalist About Disclosures of Confidential Cabinet Information. Yours faithfully The Hon L W Roberts-Smith RFD QC COMMISSIONER 18 March 2009 ABBREVIATIONS AND ACRONYMS “the Act” Corruption and Crime Commission Act 2003 “Cable Sands” Cable Sands (WA) Pty Ltd “the Commission” Corruption and Crime Commission DPC Department of the Premier and Cabinet EPA Environmental Protection Authority “Halden Burns” Halden Burns Pty Ltd “the PSM Act” Public Sector Management Act 1994 “the PSA” Public Service Act 1978 v TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS ...................................................... v EXECUTIVE SUMMARY ..........................................................................ix Introduction ...............................................................................................ix Mr Stanley John Halden (“Mr John Halden”) ............................................. ix Reaction by the Premier ........................................................................... x Preliminary Investigation by the Commission ........................................... x Assessment by the Commission .............................................................. xii Conclusion by the Commission ............................................................... xiv Commission Opinion as to Misconduct ................................................... xiv Executive Summary: Endnotes ................................................................xv CHAPTER ONE FOREWORD ............................................................................................. 1 1.1 Introduction ..................................................................................... 1 1.2 Jurisdiction of the Commission ....................................................... 1 1.3 Definitions ...................................................................................... 1 1.3.1 Public Officer ..................................................................... 1 1.3.2 Misconduct ........................................................................ 2 1.4 Reporting by the Commission ........................................................ 3 1.5 Opinions of Misconduct: Standard of Proof .................................... 4 CHAPTER TWO BACKGROUND ........................................................................................ 7 2.1 People and Entities Mentioned in this Report ................................. 7 2.1.1 Mr Stanley John Halden (“Mr John Halden”) ..................... 7 2.1.2 Halden Burns Pty Ltd ........................................................ 7 2.1.3 Mr Robert Taylor ............................................................... 7 2.1.4 Coral Coast Marina Development Pty Ltd ......................... 8 2.1.5 Cable Sands (WA) Pty Ltd ................................................. 8 2.1.6 Gunson Resources Limited ............................................... 8 2.1.7 Environmental Protection Authority ................................... 8 2.2 The Law Governing Confidentiality of Cabinet Information ............ 8 2.2.1 The Criminal Code ............................................................ 8 2.2.1.1 Section 81: Disclosing Official Secrets ................. 8 2.2.2 Public Sector Management Act 1994 (“PSM Act”) .............. 9 2.2.3 Public Service Regulations 1988 ....................................... 9 2.2.4 Administrative Instruction 711 ......................................... 10 2.2.5 Premier’s Circular 2003/14: Cabinet Confidentiality ........ 10 2.3 Allegation ..................................................................................... 11 2.4 Scope and Purpose of the Preliminary Investigation .................... 11 vii CHAPTER THREE EXAMINATION OF INVESTIGATIVE MATERIAL ................................. 13 3.1 Introduction ................................................................................... 13 3.1.1 The West Australian Newspaper Article of 31 May 2008 .................................................... 13 3.1.2 Later Media Reports ........................................................ 14 3.2 Reports to the Commission ……….……………..………... ............. 15 3.3 Investigative Steps Taken by the Commission ............................. 16 3.4 Interview: Mr Halden .................................................................... 16 3.4.1 Mauds Landing ................................................................ 16 3.4.2 Ludlow ............................................................................. 17 3.4.3 Coburn ............................................................................. 19 3.4.4 Mauds Landing, Ludlow and Coburn ............................... 19 3.5 Commission Inquiries ................................................................... 19 3.5.1 Three Government Decisions .......................................... 20 3.5.1.1 Mauds Landing .................................................. 20 3.5.1.2 Ludlow ............................................................... 20 3.5.1.3 Coburn .............................................................. 20 3.6 Private Examination of Mr Halden ................................................ 21 3.6.1 Mauds Landing ................................................................ 23 3.6.2 Ludlow ............................................................................. 27 3.6.3 Coburn ............................................................................. 29 3.6.4 Private Examination: General Questions .......................... 30 3.7 Other Evidence Obtained by the Commission .............................. 31 3.8 Assessment by the Commission ................................................... 31 3.9 Conclusion by the Commission .................................................... 34 CHAPTER FOUR COMMISSION OPINION ........................................................................ 35 4.1 Commission Opinion as to Misconduct ........................................ 35 APPENDIX .............................................................................................. 37 Text of Article Entitled “Halden says lobbying is all about skills, not contacts”, The West Australian Newspaper, 31 May 2008, pp.6-7. ENDNOTES ............................................................................................ 43 viii EXECUTIVE SUMMARY Introduction [1] On 31 May 2008 an article by Mr Robert Taylor1 appeared in the The West Australian newspaper entitled “Halden says lobbying is all about skills, not contacts” (refer Appendix to this report). [2] The article was based on an interview Mr Taylor had conducted with Mr Stanley John Halden (“Mr John Halden”). Among other things, the article reported that: Mr Halden concedes that he too has received Cabinet leaks but said they came from "indiscreet" public servants not ministers. "People tell you what happened in Cabinet quite indiscreetly," he said. "You don't have to ask. They'll tell you, they'll say what they wrote in a Cabinet briefing note. They'll tell you ‘This is what Cabinet decided on yesterday'."2 [3] These comments were reported to the Commission in accordance with section 28 of the Corruption and Crime Commission Act 2003 Act (“the Act”) by the then Director General of the Department of the Premier and Cabinet (DPC). The then Leader of the Opposition also reported Mr Halden’s comments to the Commission. The Commission undertook a preliminary investigation in accordance with section 32(2) of the Act and the information obtained is described in this report. [4] In accordance with section 22 of the Act the purpose of the investigation was to assess the allegations and form an opinion as to the possible occurrence of “misconduct” by a public officer, as defined in section
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