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Matters Raised by Paul Gibson Mp

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Matters Raised by Paul Gibson Mp Committee on the ICAC office copy - do not remove - -....-- . PARLIAMENT OF NEW SOUTH WALES • COMMITTEE ON THE ICAC REPORT OF AN INQUIRY INTO MATIERS RAISED BY PAUL GIBSON MP .. DECEMBER 1991 PARLIAMENT OF NEW SOUTH WALES COMMI'ITEE ON THE ICAC • REPORT OF AN INQUIRY INTO MATIERS RAISED BY PAUL GIBSON MP DECEMBER 1991 " COMMITIEE ON THE INDEPENDENT COMMISSION AGAINST CORRUPTION .. MEMBERS Mr M J Kerr, MP (Chairman) (Lib) The Hon D J Gay, MLC (Vice- Chairman) (Nat) The Hon J C Burnswoods, MLC (ALP) Mr B J Gaudry, MP (ALP) Mr J E Hatton, MP (lnd) Mr A A Tink, MP (Lib) Mr J H Turner, MP (Nat) Mr P R Nagle, MP (ALP) The Hon S B Mutch, MLC (Lib) STAFF Ms R Miller, Clerk to the Committee Mr D M Blunt, Project Officer Miss G Penrose, Assistant Committee Officer FUNCTIONS OF THE COMMITIEE INDEPENDENT COMMISSION AGAINST CORRUPTION ACT 1988 • "64 (1) The functions of the joint Committee are as follows: (a) to monitor and to review the exercise by the Commission of its functions; (b) to report to both Houses of Parliament, with such comments as it thinks fit, on any matter appertaining to the Commission or connected with the exercise of its functions to which, in the opinion of the joint Committee, the attention of Parliament should be directed; (c) to examine each annual and other report of the Commission and report to both Houses of Parliament on any matter appearing in, or arising out of, any such report; (d) to examine trends and changes in corrupt conduct, and practices and methods relating to corrupt conduct, and report to both Houses of Parliament any change which the joint Committee thinks desirable to the functions, structures and procedures of the Commission; (e) to inquire into any question in connection with its functions which is referred to it by both Houses of Parliament, and report to both Houses on that question. (2) Nothing in this Part authorises the joint Committee - (a) to investigate a matter relating to particular conduct; or (b) to reconsider a decision to investigate, not to investigate or to discontinue investigation of a particular complaint; or (c) to reconsider the findings, recommendations, determinations or other decisions of the Commission in relation to a particular investigation or complaint." TERMS OF REFERENCE 1\1~~p~rH•••f?:r••·••••••L9I1c19Bd9I"fY•·•if1•• til~.•·•••••••JJ.egisl(;ltiye •••.•·•••f¥sempiy /Bll.•••••••••l?······. §yP!YPJ}?~¥1 }tQ~t' !l1e• P~rliatnentary >.T9iJlt Collllllitt.~.~··ori tl1e• ··· I <JA§iri.<J1Jire i11t<:J ayjd reppit to b()tl1 f!cJl1$~s llpol1: << . .. :: .:_:.-.:.:.::.:<< :>:: ·.::.::.: <.:.:.:··:: :.:>}::::>:"/.··/:::::::.:\ :. :-.: <·.·:_::: ::_·_:.:.:_.:::; ::;::.:::· :" .::·:·:: :·: ·:;:.:: ::::::::: ... :::'-.;:.:;·.:.::::·:::::::.·:.: :::< :: .. :. :":. :-:.: .. ·.-.::::: .·.· <·: >"·< .... ·.· ... ··.·>.· ·.·. ·.· ·.· ...· .... 1 J'l1¢········pr()c@Ci~r¢~········~11d········strl1ct~rg~········i()f········tlle····•••Ilia~C1ge~•~ni ·.·•ana••·•·••· controLOfi(JACinvestigations •• and ()peratiorial aCtivities;···./ ······•J;hg·········r~Iatidnship·········~.~·tW~el1••·······the·········fEAC ••··. and··· ····oth6r········agencies·•·•·•• iijvolved il1 investig(lting Qr prosecl.lting.corrupticm; .·.·.· ·...... ··.:.·.· .:: ..··· .. .. :: ····--.: ....··- .: . ·.·.··-· -..· ·.··... :. .·· .. ;;--.····· .:· .>· ·.. ·.·.··.: .... .:·- ·-·--·· ·- .. -· .-.' .. ·. ..·.--.· .. ,- . -.c .. -.·.·· : .. ·... · .. · .::.···· .··· ·.·· ··.::·· .·.·::.::.··c· :···.·.··:.· .. ·.·.:· :.::.··. .. ... ...... .. .. ... ... ... ··.·....... ·.. ·· .. ·.. ·.·.·.·.- The. Witl1~~s Protectibrt faciliti~s kvailable to those ~ssistii1g ···tl1~ IczA.CWithitsinvestigation~.)·• Iri carrying··· ollt .the Inquiry· the Committee•··shaU •.. have regal"<f to ... a11y· matters that<mayprejlldice pending criminaL proceedirtgs ~§ confidential matters which, accordingly, should be dealt within private. In conducting •• t]J_e··IJ1quiry theCoromittee •.. shall have dtleregardtb the tel111s of s.64(2) uf the Independent Commission Against Corruption.i\cr 198~." CHAIRMANS' FOREWORD REPORT OF AN INQUIRY INTO MATTERS RAISED BY PAUL GIBSON MP • This report is essentially concerned with the management and control of ICAC investigations and a number of related matters which emerged in the context of a particular ICAC operation which took place in July 1990. The Committee's inquiry arose out of a speech in the Legislative Assembly on 12 September 1991 by the Member for Londonderry, Mr Paul Gibson MP. This speech contained a number of serious allegations in relation to the ICAC's dealings with Mr Louie Bayeh. It raised serious questions about the management of ICAC operations and the ICAC's competence generally. A number of the matters raised by Mr Gibson were referred to the Committee by both Houses of Parliament under s.64(1)(e) of the ICAC Act. I would emphasise that it is not the role of the Committee to investigate corruption. Indeed, under s.64(2) of the ICAC Act the Committee is precluded from doing that. Therefore, the Committee has made no comment in this report on what may or may not have happened at the luncheon at the La Fontana restaurant (see Chapter 3). However, due to the serious nature of the matters raised by Mr Gibson, the Committee has taken the view that it is important in the public interest that the ICAC's dealings with Mr Bayeh be clearly set out and open to public scrutiny. Chapter 3 of the report contains a detailed chronology of the Bayeh matter and significant aspects of the evidence taken by the Committee in relation to this matter. It is up to readers of that chapter to come to their own conclusions about the ICAC's handling of this matter. It should be noted that in deciding to publish this material the Committee had been mindful of the fact that criminal proceedings are pending against Mr Bayeh. The Committee has sought the advice of the Office of the Director of Public Prosecutions as to which material could be published without prejudicing those proceedings. The Committee's findings and recommendations in relation to the three terms of reference are summarised at the front of this report. As with the reports of the former Committee in its "Inquiry into Commission Procedures and the Rights of Witnesses", this report contains extensive quotes from the evidence taken before the Committee. This will enable readers to fully appreciate why the Committee has reached its findings and recommendations. • I would like to express the Committee's appreciation to all those who made submissions and gave evidence before the Committee, including a number of present and former staff of the ICAC. The co-operation of the ICAC has been evident throughout this inquiry. I would specifically like to express the Committee's appreciation for the wealth of material prepared for the Committee by the ICAC's General Counsel, Kevin Zervos. CHAIRMANS' FOREWORD CONTINUED REPORT OF AN INQUIRY INTO MATTERS RAISED BY PAUL GIBSON MP • I believe the tabling of this report within three months of Mr Gibson's speech in the Legislative Assembly in September is a testament to the diligence and commitment of the Committee. The workload upon all members of the Committee has been onerous over the last three months. It is only the dedication of members of the Committee and the bipartisan spirit in which they have gone about this task which has enabled this report to be completed in such a short time. M 1 Kerr MP Chairman FINDINGS AND RECOMMENDATIONS REPORT OF AN INQUIRY INTO MATTERS RAISED BY PAUL GIBSON MP MANAGEMENT AND CONTROL OF ICAC OPERATIONS 4.6.1 When Mr Bayeh first approached the ICAC in july 1990 the procedures and structures for the management and control of ICAC investigations and operational activities were inadequate. There was not a single line of command or an effective command structure. There was no completed investigation manual and there was no standard operating procedure for the management of informants. 4.6.2 The position has improved significantly since july 1990. The Committee notes that the ICAC now has a well developed operations strategy. There is now in existence a completed investigation manual. There is now a standard operating procedure entitled "Command and Responsibility - Operations Department" which clearly spells out the command structure in the Operations Department. There is also a standard operating procedure on dealing with informants. 4.6.3 The Committee hopes that these improvements to the procedures and structures for the management and control of ICAC investigations and operational activities would ensure that complex matters such as the approach by Mr Bayeh would now be handled more effectively. 4.6.4 Whilst acknowledging the need for flexibility and the use of multi-disciplined teams by the Commission, the Committee believes ~t is essential that the command structure outlined in SOP 1/91 "Command and Responsibility - Operations Department" is followed. Until such time as matters reach the public hearing stage, investigations should be run by Chief Investigators who are under the command of the Director of Operations through the Deputy Director. 4.6.5 The Committee sees considerable merit in Mr Roden's proposal for the establishment of a position of Deputy Commissioner, and recommends the establishment of such a position. There are a number of issues to be resolved before an appointment is made, including· the duties and necessary qualifications of the person holding the position. The Committee would wish to be involved in the resolution of these issues. The Committee has noted
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