NACC to reconsider robodebt investigations following commissioner's 'misconduct'

Following outrage from robodebt victims, the National Anti-Corruption Commission is reconsidering whether to launch investigations into six people connected with the unlawful scheme.

Signage that reads Royal Commission into the Robodebt Scheme.

A royal commission into the robodebt scheme recommended people be referred for criminal prosecution. Source: AAP / Jono Searle

Key Points
  • National anti-corruption agency will reconsider a decision not to investigate referrals from the robodebt royal commission.
  • NACC Commissioner Paul Brereton was found to have engaged in "misconduct".
  • Robodebt victims were outraged by the initial decision not to further investigate officials involved in the scheme.
The National Anti-Corruption Commission (NACC) will reconsider a decision not to investigate referrals made to it by the robodebt royal commission.

The NACC inspector, Gail Furness, delivered a report on Wednesday advising the agency to reconsider six referrals of corruption from the robodebt royal commission, which it had

She found NACC commissioner Paul Brereton had made an error of judgement and engaged in misconduct due to a conflict of interest while a decision on the matter was made.

It comes after Services Australia's annual report showed $3 million is still owed to Australians targeted by the unlawful robodebt scheme.

Why robodebt corruption allegations are under scrutiny

Furness chose to revisit a controversial decision by the watchdog not to investigate six referrals of corruption, declaring new evidence would be unlikely and concluding it was "undesirable to conduct multiple investigations".

The call was subject to at least 900 complaints when Furness chose to begin her inquiry in June, with many robodebt victims and whistleblowers outraged.

She found Brereton did not adequately withdraw himself from the process of determining whether referrals should be investigated.

The verdict came despite Brereton declaring "close association" to one of the six people referred and delegating the final decision to his deputy commissioner.
A man in a black suit and red tie speaks into a microphone.
NACC commissioner Paul Brereton is facing scrutiny over his involvement in the decision not to investigate six corruption referrals from the royal commission. Source: AAP / Mick Tsikas
"In light of the conflict of interest, the NACC commissioner should have not only designated a delegate but removed himself from related decision-making processes and limited his exposure to the relevant factual information. This was not done," Furness said in the report.

"The NACC commissioner contributed to the discussion at that meeting, settled the minutes of that meeting and was involved in formulating the reasons for the decision, and also the terms of the media statement."

Furness concluded that by doing so, the NACC commissioner "might have impinged on the impartiality of the decision-making of the delegated deputy commissioner" and "engaged in officer misconduct", recommending the decision is reviewed.
The corruption watchdog has announced it will take up the recommendation and appoint an independent person to determine whether an investigation is necessary.

The NACC reiterated that Brereton had made several efforts to strike an "appropriate balance" but ultimately made a mistake.

"The commissioner accepts that his judgement in this respect has been found to be mistaken and takes sole responsibility for the mistake," the statement read.

What has been the reaction to the report?

Independent senator David Pocock expressed "concern" that the agency was "not delivering on its mandate" to rebuild public trust in politics and public institutions.

Attorney-General Mark Dreyfus didn't address any criticisms in his statement on Wednesday as he thanked Furness for her investigation, instead throwing his support behind the agency's "important work to deter, detect and prevent corrupt conduct".
Government Services Minister Bill Shorten said the decision to review earlier calls was up to the NACC which remains "completely independent" from the government.

"For me it's all about justice for the victims of the robodebt," he told reporters.

He said he remains "very keen" to see the sealed list of people the royal commission identified as having breached their code of conduct while delivering the unlawful scheme.

Opposition leader Peter Dutton responded by praising Brereton's "integrity", saying the public had "total trust" in the commission and commissioner until it is undermined.
Australian Council of Social Service CEO Cassandra Goldie said it was a "disgrace" that so far governments had got away with "causing substantial harm to its citizens".

“There is clear public value in ensuring that justice is carried out for those responsible for Robodebt, including proper investigation into the corruption issues raised," she said.

“It is shameful that those who are responsible for Robodebt and who ignored its harm have been subject to very little accountability, if any. Robodebt victims and their families derserve so much better."

Government still owes $3 million to robodebt victims

Between 2015 and 2019, the botched debt recovery scheme, set up by the then Coalition government, automatically used tax office data to calculate average earnings and issue debt notices to welfare recipients.

Robodebt recovered more than $750 million from almost 400,000 people, but the automated process often failed to reflect people's earnings accurately.

Many welfare recipients were falsely accused of owing the government money, and the scheme was linked to several people taking their own lives.
The latest Services Australia report shows that roughly $3 million is still owed to victims of the scheme.

It estimates that around 2,600 Australians have "yet to engage with the agency to receive refunds", as of 30 June.

The of the damning 900-page robodebt royal commission report.

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5 min read
Published 30 October 2024 10:44am
Updated 30 October 2024 2:12pm
By Ewa Staszewska
Source: SBS News



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