Secretive crime commission to be called to account

THE JUDICIARY has cleared the way for a public inquiry into the secretive NSW Crime Commission, accused by the police corruption watchdog of "systemic and long-standing" misconduct.

Last night, Justice Stephen Rothman of the Supreme Court rejected an unprecedented attempt by the head of the crime commission, Phillip Bradley, to quash hearings into the state's top intelligence body.

The judge also dismissed an argument by two senior commission officers, John Giorgiutti and Jonathan Spark, that the agency "as a corporate body and emanation of the Crown is incapable of engaging in misconduct". Justice Rothman said: "A corporation has neither a soul to be dammed, nor a body to be kicked."
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The crime commission confiscates millions of dollars' worth of criminal proceeds every year. In February, a Herald investigation revealed the commission had been sharing these proceeds with established criminal figures in hundreds of secret financial settlements.

Two weeks later, the Police Integrity Commission (PIC) moved to hold public hearings into a crime commission financial analyst who had been cutting such deals with his girlfriend, a solicitor acting for crime commission targets whose assets were under scrutiny.

The PIC believed "there is a public interest in the processes of public bodies being accountable" and its investigating lawyer had "recommended findings of misconduct against certain named individuals".

After learning of the intended hearings, Mr Bradley took legal action to stop the hearings and to restrain the PIC from publishing information it had obtained. The court rejected the crime commission's argument that the PIC had overstepped its powers.

During private hearings last year at the PIC, senior crime commission officers expressed a view that they had the power to arrange financial settlements with criminals regardless of what the legislation said, the judgment revealed.

Last night, the new Police Minister, Michael Gallacher, declined to say if he would direct Mr Bradley to allow the public hearings to go ahead and stop him appealing the decision.

Justice Bradley did strike out two minor elements of the proposed public inquiry. One concerned a letter drafted by the crime commission that may have misled Treasury about the commission's power to deduct costs from criminal proceeds.

The second was an allegation that the commission had "conspir[ed] to a sham arrangement" whereby an official retired and received benefits, even though they had already committed to being re-employed. While this might still be misconduct it was outside the PIC's scope, the judge said. The commission has until 4pm today to decide if it will seek a further stay of the inquiry in order to lodge an appeal.

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