Annual Report 2004–2005 This Publication Is Available in Other Formats for the Vision-Impaired Upon Request

Annual report 2004–2005 This publication is available in other formats for the vision-impaired upon request. Please advise of format needed, for example large print or as an ASCII file. ISSN 1033-9973 © October 2005 – Copyright in this work is held by the Independent Commission Against Corruption. Division 3 of the Commonwealth Copyright Act 1968 recognises that limited further use of this material can occur for the purposes of ‘fair dealing’, for example for study, research or criticism etc. However, if you wish to make use of this material other than as permitted by the Copyright Act 1968, please write to the ICAC at GPO Box 500, Sydney NSW 2001. This report was produced in print and electronic formats for a total cost of $25,080. 800 copies of the report were printed and the report is also available on the ICAC website www.icac.nsw.gov.au Independent Commission Against Corruption ADDRESS Level 21, Piccadilly Centre, 133 Castlereagh Street, Sydney NSW 2000 POSTAL GPO Box 500 Sydney NSW 2001 EMAIL [email protected] TELEPHONE (02) 8281 5999 or 1800 463 909 (toll free) TTY (02) 8281 5773 FACSIMILE (02) 9264 5364 WEBSITE www.icac.nsw.gov.au BUSINESS HOURS 9am–5pm Monday to Friday ICAC Annual Report 2004–2005 1 The Hon. Dr Meredith Burgmann MLC The Hon. John Aquilina MP President Speaker Legislative Council Legislative Assembly Parliament House Parliament House Sydney NSW 2000 Sydney NSW 2000 31 October 2005 Madam President Mr Speaker The ICAC’s Annual Report for the year ended 30 June 2005 has been published in accordance with the Independent Commission Against Corruption Act 1988, and the Annual Reports (Departments) Act 1985. In accordance with section 76 of the Independent Commission Against Corruption Act, I am pleased to furnish the Annual Report to each of you for presentation to Parliament. Yours faithfully The Hon. Jerrold Cripps QC Commissioner 2 ICAC Annual Report 2004–2005 ICAC Annual Report 2004–2005 3 Contents Commissioner’s foreword 4 Our people – our organisation 53 Overview 54 Results for 2004–2005 7 Staffing 54 The ICAC Charter 8 Appointment of Assistant Commissioners 55 Performance against objectives 8 Human resources issues 55 New statutory reporting requirements 14 Risk management 58 Information management and technology 59 Assessing complaints and reports 17 Shared corporate services 59 Overview 18 The year ahead 60 The assessment process 18 Profile of matters received 18 Financial statements 61 Complaints from the public (section 10 complaints) 18 Protected disclosures 20 Appendices 79 Reports from public sector agencies (section 11 reports) 20 Appendix 1: Complaints profile 80 Initial decisions by assessment panel 21 Appendix 2: Prosecutions and disciplinary actions in 2004–2005 arising from ICAC investigations 82 Referrals to public sector agencies (section 53/54 reports) 23 Appendix 3: Implementation of recommendations for reform arising from ICAC investigations 86 Combating ‘everyday’ corruption 23 Appendix 4: The ICAC and litigation 87 Appendix 5: Legal changes 87 Investigating corruption 25 Appendix 6: Complaints about the ICAC 87 Overview 26 Appendix 7: Privacy and personal information 87 The investigation process 27 Appendix 8: Statement of Affairs 88 Investigations in 2004–2005 28 Appendix 9: Freedom of Information 88 Investigation reports 32 Appendix 10: Participation in significant committees 89 Investigation outcomes 33 Appendix 11: ICAC publications in 2004–2005 91 The year ahead 33 Appendix 12: Summary of training engagements, speeches and presentations by ICAC officers during Preventing corruption 35 2004–2005 92 Overview 36 Appendix 13: Overseas travel during 2004–2005 96 Advice 36 Appendix 14: Organisational structure 97 Education 39 Appendix 15: Chief Executive Officer and Training 41 Senior Executive Service 98 Publication and projects 42 Appendix 16: Access and equity 99 Investigation and analysis 44 Appendix 17: Disability Action Plan 106 The year ahead 45 Appendix 18: Ethnic Affairs Priorities Statement 106 Appendix 19: Commission Consultative Group 107 Accountability and governance 47 Appendix 20: Occupational health and safety 107 Overview 48 Appendix 21: Training 2004–2005 109 Changes to the ICAC Act in 2004–2005 48 Appendix 22: Consultancies 109 External governance 49 Appendix 23: Payment performance indicators 109 Internal governance 51 Appendix 24: Electronic service delivery 110 Accounting for the use of statutory powers 52 Appendix 25: Insurance activities 110 The year ahead 52 Appendix 26: Major assets 110 Appendix 27: Energy management 110 Appendix 28: Waste reduction and purchasing policy 110 Appendix 29: Code of Conduct 110 Index 111 Commissioner’s foreword 2004–2005 has been a year of review, change and achievement for the ICAC. An independent review of the ICAC Act, which governs the operations of the Commission, resulted in a number of amendments to the Act. The most important of these has been the establishment of an Inspector of the ICAC, an oversight role the Commission has been advocating for some time. A major change in November 2004 was the expiry of the five-year term of Irene Moss AO as Commissioner and my subsequent appointment. I would like to take this opportunity to thank Irene for her contribution to the organisation which of course extended into the 2004–2005 financial year. The excellent work of the ICAC has continued with a number of significant investigations and corruption prevention initiatives. Such success is a reflection of the ICAC’s dedicated and professional staff and the effectiveness of its procedures and processes. Commissioner’s foreword 5 Review of the ICAC Act Another major investigation included an inquiry into allegations of bribery and blackmail involving The review of the ICAC Act was announced in June 2004 local developers and two councillors at Strathfield by the Premier and completed by Bruce McClintock SC Municipal Council. In the investigation report the in January 2005. The majority of the review’s ICAC recommended charges be considered against six recommendations – including the establishment of the individuals, including a councillor and the former mayor. Inspector of the ICAC – were subsequently passed by the NSW Parliament. The ICAC also examined the handling of plagiarism allegations at the University of Newcastle’s Graduate The Inspector of the ICAC is responsible for overseeing School of Business which resulted in findings of corrupt the Commission’s use of its investigative powers and for conduct against two individuals. In another matter, investigating any complaints against staff. The position the ICAC recommended the consideration of criminal is independent of the ICAC and Graham Kelly has been proceedings against six individuals involved in financial appointed as the inaugural Inspector from 1 July 2005. and property dealings at the Koompahtoo Local Aboriginal Land Council at Lake Macquarie. As a result of the review, a number of other amendments have been made to the ICAC Act. These amendments During the year the ICAC also investigated allegations include renaming public hearings ‘public inquiries’ and that former Health Minister Craig Knowles MP threatened private hearings ‘compulsory examinations’, providing and intimidated nurses who complained to him about additional information about investigations and the time perceived maladministration and misconduct within the taken to complete them in the annual report, specifying former South Western Sydney Area Health Service. It the objectives of the ICAC Act, and confirming the concluded the allegations could not be substantiated and Commission’s independence and accountability. made no findings of corrupt conduct. In March 2005, the Strategic Operations Division Investigations completed an internal review to ensure investigation processes remained efficient and effective. The review The ICAC commenced seven category 1 investigations, identified a number of possible improvements relating to the principal investigations, and continued to work procedures and reporting systems, training requirements on 10 other category 1 matters carried over from the and team interaction. previous year. There were also 94 days of public hearings and 43 private hearings. The ICAC presented six investigation reports to the NSW Parliament with recommendations that the Director of Public Prosecutions consider the prosecution of a total of 12 individuals for criminal offences. The reports also contained 37 corruption prevention recommendations. This dramatic increase in hearing activity associated with investigations placed some strain on the ICAC’s already stretched resources. Two of the major investigations exposed corruption in relation to the construction industry in New South Wales – one involving contractor builder licences issued by the Office of Fair Trading, and the other certificates of competency issued by WorkCover. These investigations revealed evidence of serious and systemic corruption with the potential to compromise construction and safety standards both in New South Wales and Australia-wide. 6 ICAC Annual Report 2004–2005 Corruption prevention A final comment The ICAC provides a range of specific and general Finally, previous annual reports have contained warnings corruption prevention advice to public sector staff and that further budget cuts could adversely affect the work of organisations. In 2004–2005, the ICAC’s corruption the Commission. It is unfortunately necessary to reiterate prevention advice service dealt with 333 calls and emails, and, in the light of recent decisions by government,

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