VPARL1982 85no175
VPARL1982 85no175
Commissioner:
Final Report
Volume l
No. 175
26 October 1984
Your Excellency,
In accordance with Letters Patent dated 10 September
1980, I had the honour to present in March, July and December
1981, July 1982 and July 1983, Interim Reports of the Royal
Commission into the Federated Ship Painters and Dockers' Union.
I now have the honour to present to you my Final
Report of the Royal Commission and I return herewith my Letters
Patent.
I have the honour to be sir,
Your Excellency's most obedient servant,
1
,- i"~t Lr2
:rlrank Costigan
Commissioner
-"
26 October 1984
Your Excellency,
In accordance with Letters Patent dated 1 October
1980, I had the honour to present in March, July and December
1981, July 1982 and July 1983, Interim Reports of the Royal
Commission into the Federated Ship Painters and Dockers' Union.
I now have the honour to present to you my Final
Report of the Royal Commission and I return herewith my Letters
Patent.
I have the honour to be sir,
Your Excellency's most obedient servant,
Flank Costigan
Commissioner
His
Exc~llency
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(e)
(f)
and
Dated this
6t
day of
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1980.
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COMMONWEALTH OF AUSTRALIA
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TO
FRANCIS XAVIER COSTIGAN, Q.C., LL.B.
GREETING:
WHEREAS by Letters Patent issued in Our name by Our GovernorGeneral of the Commonwealth of Australia on 10 September 1980
We appointed you to be a Commissioner to inquire into and
report upon certain matters relating to the Federated Ship
Painters and Dockers Union and the officers and members of
that union:
AND WHEREAS by those Letters Patent We required you to
furnish to Our Governor-General of the Commonwealth of
Australia, not later than 30 September 1981 or such later date
as We may be pleased to fix, a report of the results of your
inquiry and your recommendations:
1981.
z-1m
COMMONWEALTH OF AUSTRALIA
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TO
FRANCIS XAVIER COSTIGAN, Q.C., LL.B.
GREETING:
AND
WHERE~S
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11
By
1982.
COMMONWEALTH OF AUSTRALIA
TO
FRANCIS XAVIER COSTIGAN, Q.C., LL.B.
GREETING:
2.
(ii)
31 December 1983,
3.
twenty fifth
December
1982.
Governor-General
COMMONWEALTH OF AUSTRALIA
Governor-Gene al
By His Excellency's
C~~
~nd o~
Attorney-General
the Prime Minister
1983.
COMMONWEALTH OF AUSTRALIA
ELIZABETH THE SECOND, by the Grace of God Queen of
Australia and Her other Realms and Territories, Head of
the Commonwealth:
TO
FRANCIS XAVIER COSTIGAN, Q.C., LL.B
GREETING:
WHEREAS by Letters Patent issued in Our name by Our
Governor-General of the Commonwealth of Australia on 10
September 1980
2.
Australia, the Royal Commissions Act 1902 and other
enabling powers, vary the Letters Patent issued on 10
September 1980, as affected by the Letters Patent issued
on 25 June 1981, 1 April 1982, 25 December 1982 and 2
February 1983, so as to require that your report of the
results of your inquiry and your recommendations be
furnished to Our Governor-General of the Commonwealth of
Australia not later than 30 June 1984.
WITNESS His Excellency the
Right Honourable Sir Nin ian
Martin Stephen, a member of Her
Majesty's Most Honourable Privy
Council, Knight of the Order of
Australia, Knight Grand Cross of
The Most Distinguished Order of
Saint Michael and Saint George,
Knight Grand Cross of The Royal
Victorian Order, Knight
Commander of The Most Excellent
Order of the British Empire,
Knight of the Most Venerable
Order of the Hospital of Saint
John of Jerusalem,
Governor-General of the
Commonwealth of Australia and
Commander-in-Chief of the
Defence Force.
Dated this
twenty first
day of
December
Governor-General
Prime Minister
1983.
COMMONWEALTH OF AUSTRALIA
ELIZAB~TH THE SECOND, by the Grace of God Queen of
Australia and Her other Realms and Territories,
Head of the Commonwealth:
TO
FRANCIS XAVIER COSTIGAN, Q.C., LL.B
GREETING:
i
2.
Federal Executive Council and in pursuance of the
Constitution of the Commonwealth of Australia, the
Royal Commissions Act 1902 and other enabling
powers, vary the Letters Patent issued on 10
September 1980, as affected by the Letters Patent
issued on 25 June 1981, 1 April 1982, 25 December
1982, 2 February 1983 and 15 December 1983, so as
to require that your report of the results of your
inquiry and your recommendations be furnished to
Our Governor-General of the Commonwealth of
Australia not later than 30 September 1984.
Prime Minister
June
COMMONWEALTH OF AUSTRALIA
ELIZABETH THE SECOND, by the Grace of God Queen of
Australia and Her other Realms and Territories,
Head of the Commonwealth:
TO
FRANCIS XAVIER COSTIGAN, Q.C., LL.B.
GREETING:
WHEREAS by Letters Patent issued in Our name by Our
Governor-General of the Commonwealth of Australia
on 10 September 1980 we appointed you to be a
Commissioner to inquire into and report upon
certain matters relating to the Federated Ship
Painters and Dockers union and the officers and
members of that Union:
Governor-General
By His Excellency's Command,
Prime Minister
COMMONWEALTH OF AUSTRALIA
Her
other
and
Queen of Australia
Territories,
Head
of
the
Commonwealth:
Our
Governor-General
of
of
the
Commonwealth
the
of
Federal Executive
on
and
from
inquire,
for
performance
Parliament
whether
the
of
and
the
October
1980,
purpose
the
powers
Government
Federated
Ship
of
Commissioner
the
exercise
and
functions
of
the
Painters
to
and
of
the
Commonwealth,
and
Dockers
or
Australia
or
among
the
States
or
ships
to
any
naval
establishment
within
the
- 2 -
(a)
the
of
activities
whether
illegal
activities,
involving
of
the
only
other
breaches
Commonwealth
or
than
of
laws,
State,
(b)
commercial
accordance
with
agreement
in
nature
an
or
payments
industrial
respect
award
work
of
performed or to be performed)
in
or
actually
from employers
the Commonwealth
or
in
relation
to
any
Defence
Act
1910
and,
if
any
such
(ii)
- 3 -
(iii) the
subsequent
or
proposed
use
or
(c)
of
the
Union
activities
in
have
engaged
relation
to
in
the
appointment of officers of
illegal
election
the Union or
of
the
or
the
Union's
affairs;
10.9.80
(d)
referred
paragraphs,
applying
to
in
this
or
the
preceding
to
the
work
of
ship
painters
and
NOW
THEREFORE
1.4.82
issued
We do,
by these
Our
Letter
Patent
Commonwealth
of
Australia
on
of
the
in pursuance of
the
the
Royal
Commissions
powers,
vary
Act
the
1902
Letters
the
and
advice
the
other
Patent
issued
enabling
on
10
(a)
the
activities,
Union
have
engaged
in
illegal
- 4 -
1. 4. 82
(b)
its
group of persons or
or associated with,
members
is
engaged
body
the Union
in
illegal
activities; and
1. 4. 82
(c)
the Union or
its
that,
for
the purposes of
these Our
1.4.82
(d)
activities
involving
any
breach
of
law
of
1. 4. 82
(e)
activities
in,
or
in
relation
to,
trade
and
places outside
Territory,
being
activities
which
are
a State
or a Territory; and
1.4.82
(f)
activities
that
directed
to,
defeating,
defeat,
have
the
effect
impeding,
of,
preventing
operation,
enforcement of a
or
are
or
prevent or
implement at ion
or
Territory:
1. 4. 82
the
activity",
that
is
meaning
that
an
of
the
expression
illegal
activity
1980,
expression
includes
for
the
any
without
"illegal
activity
purposes
of
- 5 -
issued on 10 September
1980 and of
1.4.82
(g)
reference
Union
to
officers
purporting
members
reference
includes
or
of
persons
to
officers or members
to be
the
of
the
Union; and
1.4.82
(h)
a
by
or
members
of
the
Union
is
in
a
or
the Union,
in association
whether
with
any
by
other
person:
10.9.80
AND
We
arising
direct
you
out
appropriate,
of
to
make
your
such
inquiry
recommendations
as
you
think
i f any,
that
finding
that
AND
We further
Varied
the
Union or
1.4.82
person
has
criminal
admissible
direct
[any]
offence
in a
the Union [,
that
in
be
conduct
made
Court of
amounting
only
Law,
on
to
evidence,
sufficient to
place
as
AND
We
further
recommend at ions,
direct
you
have
that,
in
regard
to
making
the
your
announced
- 6 -
payments of,
monies
following
the
report
of
the
inquiry
into
any
matters
under
these
Our
by any
of
to furnish to
the Commonwealth
of
(f)
not
later
than
30
September 1981,
or
such
25.6.81
2 5. 12.82
furnish
21.12.83
Commonwealth
27.6.84
results
20.9.84
recommendations.
Varied
AND
2.2.83
We
relevant
to
Governor-General
Our
of
of
further
Australia
your
report
inquiry
declare
Commission
for
that the
the
to
of
the
of
the
and
your
Commission
purpose
of
GREETINGS:
WHEREAS the Governor-General of the Ccmmonwea.l th of Australia on the advice of the Federal Executive Council and pursuant
to the Constitution of the Commonwealth of Australia, the Roval Commieeicne Act 1902 and other enabling powers, has
appointed you FRANC IS XAVIER COSTIGAN, Q.C., to be a Commissioner to inquire into. and report upon certain r:na.tters
relating to the Federated Ship Painters and Dockers Union and i te officers and members
AND WBEREAS the Governor of the State of Victoria., in the Comcnveal th of Australia., by and vi th. the advice of the
Executive Council of the said State, hath deemed it expedient that a Commission should forthwith issue to y::m in the
terms set out below
NOW KNOW YE that We, repcsing great trust and confidence in your kno..,ledge and ability, have constituted and appointed
and by these presents do constitute and
you FRANC IS XAVIER COSTIGANt Q..C., to be Our C::.:mmissioner to inquire
whether the Federated
Painters and
Union (hereinafter referred to as "the Uniontt) or any officer or
member of the Union in
course of or in relation to the affairs of the Union, has engaged in any illega.l activities
(other than activities involving only breaches of the la.., whether of the Comon..,ea.lth or a State relating to trade unions)
AND 1 ..,ithout restricting the scope cf your inquiry, we direct you, for the purposes of your inquiry, to give particular
attention to the following questions:
(a)
(b)
(i)
(ii)
(iii)
(c)
(d)
AND "WE direct you to ma.ke such recommendations arising out of y:)ur inquiry as
recolll:Ulendations regarding the legislative or administrative changes, if any,
Alill WE further direct that any findi.Jig that th& Union or any otticar or member of the Union ha& enga,ged in conduct
uounti.Dg to a criminal offence be 1ll&de only on evidence, a.dlol.oaibla in a Court of Law, surticiant to place the
Union, officer or 11e11.ber on trial for that offence:
.&BD WB further direct that. in maJti.ne' your recoaaend&tione, you have ~ to the announced intention of the
Gow:caent of the C011111.onwealth to introduce a ayatcm of reportizlg o d.a;nds for, and p~ts of, monies
following the report of the Rc;ral COIIIIIiaaion into Alleged Pa;rmanto to Ma.ri time Unions by the Honourable
ll:r. Juetica Sweena;r:
Alill WE do b:r these presents give and jJ1'0Zlt unto you tull power and authori t:r to call before you su.ch person or
persona as you shall judge likely to &!ford you an:r infol.'IIIB.tion upon the aubject of this Our COIIIIIiooion, and to
inquire of and concerning th& premises b:r all other ltwtul wa:r and ........ wllateoeverc
Alill WE declare that you are authorized to conduct your inquiry into the uttere mentioned aforeaaid under theae
our Letters Patant in combination with an:r inquiry into the matters that you are directed or authorized to ma.lce
b:r an:r COIIIIIisaion or COIIIIIiasions issuad, or in pursuance of an:r Order or appointmant lll&de, by the Governor-General
of the c,_.,nweal th of .l.uatn.lia or the Govemor of an:r State of the Collllllonwe&l th of Australia.
Alill WE will and o - . 1 that this Our COIIIIIiaaion &hall continua in tull force and virtue and. that you sh.a.ll and.
ma;r from time to time and. at an:r place or placaa proceed in the eucution thereof, and of every matter a.nd thing therein
contained ol though th& aame be not continued from time to time b:r a43ou:rnmant:
Alill WE require you aa e:spedi tiouely as possible to make your inquiry and -
(a)
(b)
lll TISTll))IY WBl!li!IIIOF lie hove caused these Our Letters to be made Patent end ths seal or our aaid State to be
hereunto &!!iud.
Wl'l.'!ll!SS,
t;JF
OF 'I'IE C'OIIItO!IIIl!ALTH.
WHER'EAS the Governor of the State of Victoria, in the COIIUQOnwealth of AUstralia, by and with the advice of the executive
Council of the said State, issued to you on the 1st day of October 1980 a COI!Iladssion to itquire into and rep:.rt upon
certain matters relatin<J to the Federated Ships Painters and Dockers union or any officer or
~~ember
you were directed expeditiously as possible and not later than twelve JlK)nths from the 1st day of October, 1980, to
report under your band and seal a report of the resulta of your inquiry and your recommendations.
AND WHEREAS it is considered expedient to extend the latest date upon which you shall report as aforesaid.
NOW KNOW YE that We hereby extend the latest date upon which you shall reJ?Qrt as aforesaid to not later than
the
31st
IN 'l'ESTIMONY WHERIDF
affixed.
WITNESS,
~~~
thirtieth
37
P49111
day of
on the
June
...it_.,'v
~
One
~AVIER
GREETING~:
Victori~h
Executive Council of the said State, issued to you on the ninth day of September. 1980 a Conrnisslon to lnquire into and
report upon certain matters relating to the Federated Ship Painters and Dockers Union or any officer or member of the
Union and you were required as expeditiously as possible and not later than tllfelve months from the 1st day of (ktober, 1980
or such later date as we may be pleased to fix to report under your hand and seal a report of the results of your inquiry
and your recommendations.
June~
1981 fixed the latest date upon which you shall report under your hand
AND WHEREAS it is considered expedient to fix a hter date upon whi<.h you shall report under your hand and seal as
aforesaid.
HOW KHOW 'IOU that We hereby fix the 31st day of Oetember, 1983 as the latest date upon whlch you shall report under your
hand and seal as aforesaid.
JH TESTiflt)NY WHEREOF We have caused these Our Letters to be made Patent and the Seal of Our State to be hereunto affixed.
WITNESS~
Hurray~
Knight Cormlander of
.~~~
( ATTORNEY-GENERAL
19
day of October
AIID CABINET
One Thousand.
~the
Governor of the State of Victoria. in the C<X!'!JIIOnwealth of Australia. by and with the advice of the Executive
State~
issued to you on the 9th day of September 1980 a COII'III'Iission to inquire into and report upon
certain matters relating to the Federated Ship Painters and Dockers union or any officer or tnell'!ber of the union and you were
required as exped,ttiously as possible and not later than tvelve 1110nths fro111 the 1st day of October 1980 or such later date
as we NY be pleased to fi:K to report under your hand and seal a report of the results of your inquiry and your
recommendations.
AND WHERFJ\.S a Commission issued to you on the 30th day of JUne 1981 fixed the latest date upon which you shall report under
your hand and seal as aforesaid as the 31st day of Decemhf,r 1982.
AND WHEREAS an Order dated 6th October 1982 fixed the latest date upon which you shall report under your hand and seal as
aforesaid as the 31st day of Decell'!ber 1983.
AND WHEREAS it is considered expedient to fix a later date upon which you shall report under your hand and seal as
aforesaid.
NOW
IQKM
and seal as
Dece:~~~ber
1914 as the latest date upon which you shall rep<)rt under your hand
aforesaid~
IN TESTIMONY WHEREOF We have caused these Our Letters to be Nde Patent and the Seal of our State to be hereunto atfixed.
Wl'niESS,
~ight
..a..,N
day of
~e
A'l'TORNEY-GEN~L
Pa9<1 238
thio
20th
~ay of December
One 'ltl-d,
FINAL REPORT
VOLUME 1
NOTE
Certain names of individuals and companies have been deleted
from this published Volume upon the advice of the
Commonwealth and Victorian Directors of Public Prosecutions.
These deletions have been made to avoid prejudice to pending
and current prosecutions. As a result, blank spaces appear
in parts of the Volume.
VOLUME 1
Table of Contents
CHAPTER
PAGE NO.
l.
Introduction
2.
Natural Justice
16
3.
Mr Packer's Complaint
43
4.
66
5.
Operational Overview
81
6.
119
7.
Previous Recommendations
135
8.
163
9.
Transfer to NCA
204
265
10.
References
276
CHAPTER 1 - INTRODUCTION
1.001
1.002
commissioned
Governments.
of
Australia
on
the
advice
of
the
Federal
l.Ov4
The
Commission
commenced
its
hearings
in
the
Volume 1
-1-
Chapter
Introduction
filing system could sensibly cope with them, and they would
be
impossible to analyse without
the use of modern
management systems. Accordingly, immediate steps were taken
to make use of computer facilities under the control of the
Department of Administrative Services.
In addition, it
became clear that special computer programmes would need to
be written to enable the material to be accessed and
manipulated in a way which would assist in the answering of
the
questions
which
flowed
from
the
Terms
of Reference.
1.005
The first four months of the Commission were
devoted exclusively to an examination of the Union, its
membership, criminal background and practices, and its
activities at the Williamstown Naval Dockyard.
In March
1981, as I was required to under my Letters Patent, I
delivered Interim Report No. 1.
This was a confidential
report.
For the reasons set out in it, I sought an
extension of my Commission until the end of 1982.
That
request was granted.
In the course of the Report I said,
"It is clear that the task imposed on me is far more
formidable (and probably far more significant) than was
initially realized." - paragraph 1.13.
Nothing which has
occurred since March 1981 has caused me to alter that view.
The work of the Commission continued and its
1.006
investigations expanded. Indeed, in July 1981 I delivered a
second Interim Report to Government.
This report likewise
was confidential.
I made some comments which reflected my
state of thinking at that time and it is useful, I believe,
to refer to them again.
Volume 1
-2-
Chapter
Introduction
11
1.12
The Commission has concentrated
on Victoria.
The criminal organisations
found there have their operations outside
that State and it may be that there are
no others operating interstate.
Or it
may not.
If there are similar criminal
organisations at work in other States
then the work of this Commission will
take a very long time.
It will become
akin to a Crime Commission and less a
Royal
Commission
investigating
one
particular Union.
1.13
This should
not come as
a
surprise.
This Union has a positive
policy of recruiting hardened criminals,
at
least
in
Victoria.
Such
people
normally
are
unattractive
to
honest
people, including the many honest and
hard working trade unionists in this
country.
But
to
this
Union
such
criminals are desirable.
It is probably
in order to make use of their dubious
'talents'.
It certainly has as
the
consequence that any dishonest person
requiring criminals to carry out his
project has a 'central employment agency'
at which he can recruit them.
If one
adds the facility offered by the Union to
equip a criminal 'on the run' with a
false identity and to find him work
interstate whilst the 'heat 1 is on, one
finds a sophisticated organisation posing
as a Union but having as a major purpose
an enterprise of a most evil kind.
1.14
In order to concentrate on the
more
significant,
the
Commission has
shortened
the
examination
of
lesser
matters and has taken steps to place the
completion
of
the
investigation
and
prosecution of those matters in the hands
of the appropriate police authorities.
For
example,
the
unemployment
fraud
described later in this report will not
be the
subject of further extensive
examination by the Commission.
It will
make its data base available to the
Australian Federal Police for its use in
the detection of the fraud, and will
stand aside to allow that Force to get on
with the job of its prosecution.
The
most that the Commission will do in the
future is to ensure the public revelation
of the extent of the fraud in
Volume 1
-3-
Chapter
Introduction
Volume 1
-4-
Chapter
Introduction
request an amendment
to
Section 16
of
the
Income Tax
16,
though
not
in
1.010
I made use of the access immediately it was
granted. As a result I delivered a Fourth Interim Report on
27 July 1982.
It was in three volumes, but only Volume 1
was
made
public.
This
was
in
accord
with
my
recommendation. Volume l dealt with a number of matters of
which by far the most significant was Chapter 3 entitled
"Fraud on the Commonwealth Revenue".
This chapter produced
a good deal of public discussion, as well it might, because
it
confirmed
what
was
already
outlined
in
the
McCabe-LaFranchi Report and disclosed a scandalous fraud.
Volume 1
-5-
Chapter
Introduction
recommended the
report.
Both
these
appointments
were
an
1.011
For the balance of 1982 and the first half of
1983 I concentrated the resources of the Commission on the
investigation of a major fraud based in Brisbane but with
implications
throughout
Australia
and
extending
into
Singapore and Hong Kong.
I reported on this matter
Interim Report No. 5 which I delivered on 25 July 1983.
in
By
1.012
Vhen
had
completed
the
investigation which
-6-
Chapter
Introduction
1.013
report.
It
is
"final" in
the
sense
that
it
is
report,
read
the
last
final
again the
In preparing
interim reports.
There
is
Investigations since
part
of
reports,
"final 11
this
report
incorporate
the
interim
11
final 11
it is unnecessary to retrace
reports,
for
example,
criminal organisations.
support
and
resources.
Since
for
defined
operations
recommendation
authority,
for
an
those
It was to
the establishment of a
upgrading
reports
law
of
crime
enforcement
great deal
Some are
more evidence of criminal organisations at work.
examined in parts of this report,
are
the
confidential
volumes.
have
of
seen a
situation
is
as
it are
train.
in
definition of
criminal
the
No useful
problem.
organisations
purpose is
served by further
A description
may
of
tittillate
the
the
several
public
to
explain my conclusion.
its
purpose.
It
is
desirable
I
I
Volume 1
-7-
Chapter
Introduction
1984
when
they
were
defined
and
forwarded
to
the
1.017
Any
person
commissioned
discharge
be
satisfied
administration.
by
little
In my case,
more
duty
report
there has
on
-8-
the
been much
Volume 1
is
than
however,
public
the
Chapter
Introduction
requirement.
It is necessary to record how the work was
done in my Commission so that all may know and may discuss
its ramifications.
1.018
this
report
omission.
One
example
is
that
which
commenced
with
the
any
Volume 1
-9-
Chapter
Introduction
It is
divided into eleven volumes and a number of appendices.
I
recommend that six volumes (6-ll) be not published.
In many
ways, it is regrettable such a recommendation is made. They
deal with a number of matters which have been the subject of
public
debate;
some
contain
the
factual
background
supporting recommendations for changes of laws.
In both
cases, there is an interest in publication. However, there
is an even stronger competing interest.
Some matters in
those volumes relate to current investigations of great
importance which, if publication occurred, would be gravely
prejudiced.
Others deal
serious criminal offences.
for non-publication.
1.021
report, I
interest.
However
publicly demonstrating
the
criminality
for
the
of
the
Volume 1
-10-
Chapter
Introduction
Thus
the
publication
of
the
parts
of
this
NCSC
(1984)
52 ALR
In
relation
recommendation
to
Volumes
that
to
11,
these
it
five
is
my
In other cases
it
is
Volume 1
-11-
To
Chapter
Introduction
publish
this
problem
may
prejudice
the
trial
of
current
Volume 1
-12-
Chapter
Introduction
he
assisted
in
the
transition
to
the
National
Crime
in its last
The Public
I
a
1.027
I
have been well served by Counsel and
solicitors attached to the Commission.
Mr Douglas Meagher,
Q.C., has been a source of enormous assistance. His advice,
which I have frequently sought, has been wise.
His energy
and direction of the investigations has been of the highest
quality.
He was primarily responsible for the development
of the systems and techniques used by the Commission.
Not
only the Commission, but also the Australian community
should be forever grateful for his work.
Volume 1
-13-
Chapter
Introduction
high level.
The solicitors,
I wish to record my
help given by other Departments
Federal Police and the Victorian
their Forces on a
full-time
invaluable.
Each Force provided a senior liaison officer;
from time to time such officers were replaced whilst on
vacation or on other duties but substantially Detective
Chief Inspector Frank Green of the Victoria Police and
Detective Chief Inspector Mike Phelan of the Australian
Federal Police occupied these positions. I cannot speak too
highly of the work they did.
The Taxation Office and the
Customs Service responded to every request in an efficient
and speedy manner.
In addition,
the Customs Service
seconded to the Commission a full-time officer.
His work
was invaluable.
Regular conferences at the Commission
included representatives of the Taxation Office, the Special
Prosecutors' offices, Customs Service, Victorian and Federal
Police, and the Australian Bureau of Criminal Intelligence.
Their presence was essential and valuable.
1.029
Although on occasions I worked closely with
other Government departments, I had a special relationship
with
the
Department
of
Prime
Hinister
and
Cabinet,
Department of Administrative Services, Department of the
Special
Minister
of
State
and
the
Attorney-General's
Volume 1
-14-
Chapter
Introduction
As
appears
in
Chapter
of
this
volume,
Singapore
Police and
the
the
Volume 1
-15-
Chapter
Amongst
those
led to
I have
All failed.
concerned
with
the
liberty
of
Thus
it
is a
the citizen from
imposition.
It curtails the State especially;
for usually
it is only the State which has the overt power and authority
to attack liberties and property.
With the growth of
statutory bodies and their power to confer licences allowing
otherwise prohibited conduct to occur,
extension of the strictures of natural
Volume 1
-16-
Chapter
Natural Justice
2.004
The
law
requires
compliance
with
natural
to
individual
citizen
preserve
the
is
free
proscribes.
is
it
from
and
fundamenta 1
do
to
This
distinguishes
independence
The
citizen.
he
as
the
chooses
major
other
freedom
premise
systems
as
a
law
democracy
and
government.
It
of
of
the
the
save
tenet
of
that
is
In the
Putting
aside
restraints
of
law,
there
is
no
2.005
of ways.
the
most
observable
form
because
This is
Governments
act
in
The action
It
not
It
can
happen
in
restrictions
private
on
business,
freedom
of
secrecy.
under
action
are
civil
law,
where
constantly
being
2.006
the criminals.
The
reaction
of
the
State
to
these
several
In respect of the
State
seeking
to
oppress,
there
have
been
important
changes.
The most fundamental was some centuries ago when,
at the cost of a crowned head,
applied
to a 11,
additional measures
have been
of
is
natural
but
introduced.
one;
the
recent
The
of
requirement
to
is
-17-
right
times
access
Volume 1
justice
In more
Chapter
Natura 1 Justice
2.007
been
taken.
They
Act,
domination
by
aggressive men
of
business.
There
that,
in
the
activities
of
lawful
business,
2.008
respect
of
individual
liberty
was
thought
to
be
emerging.
Thus
It may be expected
that
2.009
crimina 1.
against
liberties
of
others.
cannot be left
resources
to
criminals
to the
who
There
seek
is
to
interfere
recognition
individual citizen.
investigate and
with
that
the
this
He has not
initiate action.
Thus
the
it
is
Volume 1
-18-
Chapt "'1:'
2.010
To
preserve the
integrity of
the
person and
2.011
There has been remarkable success in chaining
the powers of the State to interfere in the life of the
citizen.
attention
community.
There is a healthy wariness of official power
and authority;
a constant challenge to its action;
and
constant debate about the wisdom of its decisions. Likewise
in other areas of overt power and authority.
There is
nothing like the same alertness and concern about the
illegal oppression of civil liberties by criminals and their
organisations.
2.012
In western democracies in genera 1, and in
Australia in particular, the major oppressor of civil rights
and liberties is the criminal.
He injures the person,
steals the property and invades the privacy of the innocent
without remorse or compunction.
He affords no warning,
gives no opportunity to be persuaded otherwise and does his
best to ensure there is no sanction.
2.013
If the crimina 1 in genera 1 is an oppressor,
the criminal organisation
is a
tyrant.
To all
the
attributes mentioned is added a remorseless march trampling
over the honest and law abiding and treating them with
Volume 1
-19-
Chapter
Natural Justice
It
comprises
people
motivated
by
profit,
contempt.
contemptuous of the law, careless about their victims,
ruthless in their determination and remorseless in their
end ea vou rs. They profit on the immature, the gullible, the
naive.
They are unscrupulous in their endeavours to avoid
apprehension. They have the wealth and intelligence to make
unlikely any recourse by their victims or the State.
The
result is a tyrannous domination.
2.014
State
for
it
is
required
the witness
box
with
where
often
they
are
mocked
and
scorned
little
they
the
protection
of
the
general
The offender
civil
rights
is
and
doubts
and
the
advantages
of
every
procedure.
Not for him, if he does not wish, the trauma and uncertainty
of the witness box.
Volume 1
-20-
Chapter
Na tu r a 1 Ju s t ice
2.016
be
tilted
citizens
neglect
to
report
thefts,
housebreakings,
2.017
The only source of vocal complaint about this
state of affairs is the Police Force.
Its spokesmen
constantly draw attention to it and call for redress.
They
ask for the addi tiona 1 powers and resources they require.
Their cry is treated with suspicion.
There is an inference
that their demands are for malevolent purposes;
that they
seek the powers for their own self aggrandisement, so they
may adopt an authoritarian position in the community.
not think this
is
the reason
for
their
cry.
They are
do
the
Volume 1
-21-
Chapter
The
2.018
plight
of
the
victims
did
strike
evidence
on
at
least
two
occasions
and
suffer
the
is ultimately concerned
liberty of citizens.
with
the
lies
The enforcement of
preservation
of
the
Volume 1
in
-22-
the
Chapter
Natural Justice
The
the
wrong
that
was
done
to
the
victim
may
be
redressed.
The
punishment
that
is
visited upon
the
convicted is on account of the wrong that has been done,
usually to a fellow citizen and not to the State.
2.021
Hence
the
police
investigation and
resulting
not
its
destruction.
Undoubtedly
there
is
But, in the
the civil
liberties of
checking
be
namely to
from
considered
the
they quickly
essential.
empty
When
it.
of
remedies
sensitive
to
appreciated
be
to
allowed
that
Without
information
substance.
Hence
legislation.
Volume 1
those
right
the
the
civil
against
to
rights
Freedom
liberties
the
State,
information
was
conferred
were
of
Information
-23-
Chapter
Natural Justice
protections
warranted.
be available to
It
is equally
The gathering
of
information must
involve an
invasion of privacy.
Where a citizen seeks to keep
information secret,
its gathering invades not only his
privacy but also his freedom to keep it secret (which is a
different and greater invasion).
If he must personally
disgorge that which he knows he is subjected to an
imposition on his freedom to do what he will with his
person.
Just as some governments and public servants
interference they may see in Freedom of
dislike the
Information rights, so too does the private citizen.
Yet
without that interference the State cannot enforce its
laws; and if it cannot, the civil liberties of law abiding
citizens, flagrantly transgressed as they may have been, are
left unprotected against future transgress ion, and a re not
remedied by any punishment visited upon the transgressor.
The operation of a Commission of Inquiry is
2.025
directly concerned with gathering information, since that is
its prime task.
Perforce it must intrude on privacy and
compel the disclosure of what some seek to keep secret.
Volume 1
-24-
It
Chapter
Natural Justice
Looked at
enquiries,
from the
it is a
of liberties.
Where, such as in my instance
many other recent inquiries, it is concerned
this
by
gathering
information
and
informing
It
those
transgressed
have
liberties.
right
to
protection
of
their
civil
It is not absolute.
only
permit
the
they are
with
the
the civil
Volume 1
-25-
Chapter
Natural Justice
The
2.028
law
identifies
the
means
by
which
the
Generally it
many
forms
of
The procedures are
effect without
causing
an
imbalance
between
the
at a
later
time.
The
subject
of
the
investigation is certainly entitled to justice but only in
moderate measure at the proper time.
The community is
its
fairness
is
paid
only
There
is
to
the
interests
of
the
alleged
offender.
2.030
need
for
rules
regulating
the
These a re
designed
not
to
manner
of
investigation.
frustrate the investigative process because its success is
vital to the protection of the civil liberties of the
law-abiding community.
the
this
cannot
be
carried
so
far
as
to
prevent
the
of
regulations governing
deposition on oath of
the
the
may
still
be
used
though
the
searcher
may
be
punished.
Volume 1
-26-
Chapter
Natural Justice
the
searcher.
A wrong
committed
by
another
does
not
the
investigator
principal
erred;
wrongdoer
but
that
is
to
now
escape
where
changing
as
the
the
In
daily
the
to
conduct
of
my
authorise
the
Commission
I
was
process
by
which
On
this point,
of
one
view,
I was obliged
if
to
his
natural
intrusions
justice
on
the
applied
permit representation,
at
advise
took
the
desirable.
view
that
this
was
neither
necessary
nor
It was not necessary because the right to
in their
path,
not be enforced.
for without
limited to ensuring
that the request for access was born out of proper motives.
The subject would have his opportunity at a later time, at a
time
when
his
liberty
or
property
was
directly
and
immediately at risk.
2.034
Volume 1
-27-
Chapter
Na tu ra 1 Ju s t ice
reached,
was
or
assistance
empty
the
to
fear.
documents
direction
them
in
Later
of
my
out
preventing
report
travelling,
would
be
of
my
This was
no
removal
of
purpose
of
upon
success.
a
jurisdiction
blatant
for
the
of
the
civil
rights
of
fellow
citizens
to
When
to
my
their
represented.
enquiries
return,
did
this
I
so
moved
did
that
from
allow
the
issue
witness
the witness
to
could
of
be
seek
Generally I
had
gathered
examined;
to
be
nor
made
did
allow all
available
to
any
witness.
Nor, at the end, did I allow submissions to be
made on behalf of any person or institution.
There were
some exceptions to this which I report upon shortly.
2.036
My reason for not allowing the effective
implementation of the principles of natural justice was that
in almost every case the result of my deliberations was the
referral
of
the
matter
to
ordinary
law
enforcement
agencies.
Once
in
their
hands,
and
following
their
initiating process, the full requirements of natural justice
would be met.
In none of the matters did I expect that an
opportunity would not be presented at some point, albeit
long after
had completed my
therefore unnecessary
part
of
the
task.
to give an opportunity;
It
and
was
it was
Volume 1
-28-
Chapter
2.037
My adoption of this approach gains support
from the words of the Chief Justice of the High Court in
Church of Scientology Inc & Anor -v- Woodward & Ors (1982)
43 ALR 587 at 594-5, where he said:
"It is obvious that intelligence which
falls far short of establishing that a
person
is
a
risk
to
security
may
nevertheless be relevant to security.
A
scrap of information which, in itself,
may seem to have no bearing on security
may,
when
put
together
with
other
information,
assume
a
vi ta 1
significance.
An
officer
seeking
intelligence will not always start with a
hot trail but may need to begin by
collecting information in the hope that
it
may
ultimately
prove
to
be
of
importa nee.
The
necessary
concession
that ASIO is entitled to make initial
inquiries reveals the difficulty in the
suggested construction. It is impossible
to suggest any rational test by which one
could determine the point of time at
which one should ask the question whether
the
inquiries
so
far
made
have
established
that
the
intelligence
is
relevant
to
security.
Today's
intelligence may seem to establish that a
suspected person is a
loya 1 citizen;
further information obtained tomorrow may
show that he is engaged in espionage or
subversion.
There is nothing in the Act
of
1979
that
leads
to
the unlikely
conclusion that ASIO must cease to obtain
intelligence about a particular person
unless
its
initial investigations are
successful in establishing that he is a
security
risk.
Moreover,
intelligence
gathered in the honest belief, or in the
hope,
that
it
will
be
relevant
to
security may, in the light of further
information,
prove
to
be
valueless.
Finally, i t should be remembered that it
may be relevant to security to establish
that
a
particular
person
is
not
a
security risk."
Volume 1
-29-
Chapter
Natural Justice
In
submission
that
that
case
it
had
the
the
Court
was
power
to
concerned
declare
with
that
a
the
it
would be absurd to suppose that
Parliament
intended
by
s
17(l)(a)
to
confine
ASIO
to
the
obtaining
of
intelligence which on ultimate analysis in
the
light
of
a 11
established
facts,
whether known to ASIO or not, related to a
person who is a security risk. In the very
nature of things a security intelligence
organization
from time-to-time receives
information, not always reliable, tending
to
suggest
that
an
individual
is a
security risk.
The information has to be
checked out and followed up.
This may,
and probably will, involve the obtaining
of intelligence relating to the alleged
suspect. The end result of the inquiries
may establish to the satisfaction of ASIO
or even objectively, that the suspect is
not and never was a security risk.
But
this does not mean that the intelligence
which ASIO obtained was not relevant to
security.
Intelligence
is relevant
to
security if it establishes or tends to
establish that a person suspected of being
a security risk is, or is not such a
risk.
Moreover,
it may well be that
intelligence is relevant to security, so
long as it is obtained for the purpose of
determining whether a person alleged or
thought to be a security risk, is such a
risk. Despite this, in some cases it may
be possible to infer from the character
and reputation of the Plaintiff that ASIO
could
have
no
information
in
its
possession
suggesting
that
he
is
a
security risk or that if it has, that
information could not be credible, simply
because the suggestion that the particular
plaintiff is a
security risk must be
regarded as fa ne ifu 1. 11
Volume 1
-30-
Chapter
Natura 1 Justice
The
Chief
Volume 1
-31-
Chapter
Natural Justice
said at
page 439:
"In our op1n1on the Commission will comply
with the statutory mandate to observe the
rules of natural justice in the present
case if it proceeds to allow each witness
who is ea lled to give evidence to the
legally represented, with freedom for that
representative
to
participate
in
the
examination of the witness, and for the
provision
of
a
transcript
of
his
evidence. The conduct of an investigation
in such a manner is fair and nothing more
is required."
2.039
In the News Ltd. -v- NCSC case there was
discussion about allowing representation and argument at a
point where the NCSC was proposing to make a fina 1 judgment
on the merits and to publish that judgment. The High Court
questioned whether
publication
would be allowed.
That
is
Volume 1
-32-
Chapter
Natural Justice
investigations
by
fruitless,
applications to the Courts.
Volume 1
but
-33-
time
consuming,
Chapter
Natura 1 Justice
2.043
in
applications
answering
to
the
Federal
Court.
It
was
being an
In
instance
it had no foundation.
constant
investigation
of
The disruptive
the
investigators
effect of
and
the
the
prime
objective
of
the
subjects
of
the
investigations.
2.044
is
the
State.
Whilst
the
investigators
of
the
State
unscrupulous
the
investigations
may
be
should be borne in mind that the amateur
to erect a
2.045
enforcement
wealth
privilege.
and
Such
people
have
enough
advantage
Volume 1
-34-
Chapter
Natura 1 Justice
2.046
exceptions.
my
inquiry
was
directed
at
the
Union,
initially
powerless
to prevent
the
intrusion of criminals
ea lled
meeting
on
enquiries.
a 11
at
the
members
Council
to
Club
refuse
Hotel.
to
The
resolution
"cooperate"
with
my
Volume 1
-35-
Chapter
It was upheld
by unionists
in
meant that
and to the
as a
their
explanation;
they responded in a contemptuous manner for
which they were later punished in the Courts.
Once again,
Mr. Galbally's hand was observed as being present;
and by
the submissions he made to the Court on the occasion of
their tria 1 for their contempt of me he took advantage of
the privilege given to lega 1 representatives in Court to
utter slanderous and contemptuous remarks directed at me and
the counsel assisting me.
It is plain enough that the
Union,
at
least
in
counselled or incited
was either
attitude of
Volume 1
-36-
Chapter
notwithstanding
believe
those
other
the
common
lawyers
sense
gave,
and
sound
chose
to
advice
adopt
the
on
Volume 1
-37-
Chapter
2.054
There was one matter of industria 1 concern,
that being the extortion practised on the wharves at Port
Adelaide.
It was suggested that an answer may lie in the
permanent employment of the painters and dockers. This was
a matter on which I expected the Union to have a legitimate
view and I was anxious to hear it. Mr Spencer, on behalf of
the Union, was invited to make submissions to me provided I
had the benefit of evidence from Union members in Adelaide
on this important matter. No such evidence was offered.
2.055
I
did
allow
some
cross-examination
of
witnesses by the Union representatives since this was
helpful to me in extracting all the information relating to
certain topics.
Generally, however, the representation of
the Union was not helpful either to it or to me.
I absolve
completely the excellent service which Mr Spencer and his
instructing solicitor, and Mr. McDermott and his instructing
solicitor, sought to give the Union both federally and in
Victoria.
It was not their fault that the Union took the
course i t did and refused to accept their advice about a
different course.
2.056
There were a number of occasions when I
promised to allow an opportunity to Counsel appearing for
witnesses to recall their witnesses or to call other
witnesses or to cross-examine certain other witnesses.
My
illness, the difficulties in transition, and the pressures
of
time
have
prevented
me
from
honouring
those
undertakings. From a personal viewpoint I am sorry this has
occurred.
However,
in every case they will have, at
committal proceedings and at trials, the opportunity to
conduct that examination. It is all that is normally
Volume 1
-38-
Chapter
Natural Justice
provided to an accused.
I see no reason why
opportunity is required merely because there is
a
a
third
Royal
Comm i ss ion
2.057
me greatly
criminal
There is a
in
respect
behaviour.
hesitation
of
As
individuals
I
have
of
whom
explained,
suspected
had
little
or
economical.
if
The
there
are
other
collection
of
means,
this
they
were
information
not
was
an
2.058
the
investigation
and
had formed a
often
where
the
reached
information
further
had
been
stage
of
procured
The
other was
to place the matter
in
the hands
of
law
enforcement agencies and permit them to follow their normal
course.
2.059
have been
as
they
attractive.
would
However,
in
there
Court,
were
was
inherent
professionally
difficulties
in
in a
Court,
the
accused
is usually apprehended and questioned.
He
is
normally given the opportunity to answer the allegations
made.
Volume 1
-39-
Chapter
Natural Justice
fairness.
If
it
is
left
until
the
criminal
court
interests of
opportunity
questioning
the community
should
he be guilty.
The
presented
to
law
enforcement
agencies
of
the suspect and employing his answers against
concerned
the
rights
of
the
guilty
man.
he had
If
the
Such
to achieve
it.
Of course,
had a
charge been
laid, the law as propounded by the High Court in Hamidan -vWoodward clearly denies me the use of those powers.
Volume 1
-40-
Chapter
2.062
conduct
allegations
were
proceeding
put
and
like
argued.
hearing
Any
at
which
"confession"
the
could
However, this is to
committal.
Whilst
from
presiding at Committal
was not endowed with
committal powers.
I could not commit any person to trial;
I could not grant bail;
I was not empowered to determine
guilt or innocence; nor did I have any authority to make a
judicial pronouncement that a prima facie case had been
established. A Royal Commission is simply a fact gathering
authority, and its powers are limited to transmitting those
facts to Government or Governmental agencies.
Indeed, I did
not even have power to initiate a prosecution.
All I could
do,
and
have
done,
is
recommend action
by
those
who
are
2.063
with
It
judicial
agencies.
absence
is a mistake to equate a
office,
or
even
with
Royal Commission
law
enforcement
any
appropriate
powers
for
either
function.
2.064
belief on my
Volume 1
-41-
Chapter
Natural Justice
the
of
the
accused,
the
that
from my work
for
2.065
interests of
the accused,
the
interests of
the public.
Volume 1
-42-
Chapter
3.001
I
submitted
3.002
Nor do I
from the
Volume 1
-43-
Chapter
Mr Packer's Complaint
This, he
damaged
As
The
complaints
of
Mr
Packer
were
made
vehemently.
He sought, so he said, no greater or lesser
rights than a "house burglar". But he did want those rights
in full measure.
Volume 1
-44-
Chapter
Mr Packer's Complaint
3.006
These are serious allegations.
There was
considerable pressure applied on me by the media to make an
immediate response.
Had it not been that my report was
rapidly approaching finality, I would have responded other
than in this report.
However, since the report already
dealt with many of the complaints, it was more appropriate
for there to be a measured answer, not one produced in the
heat of the attack.
For this reason I have not concerned
myself to answer until now.
3.007
matters
I t was
referred
by
to
the
Attorney
General,
who
It was not my
to the contrary I
intention that
it
sought to ensure it
Volume 1
-45-
Chapter
Mr Packer's Complaint
identified.
list
of
such
matters
in
an
answer
to
those
An
equal
consideration,
however,
for
my
Volume 1
-46-
Chapter
Mr Packer's Complaint
them to me.
9.
I intended not to give him any further opportunity to
take such action by keeping from him the extent of my
investigations. His suggestion that in such circumstances I
would countenance the public revelation of my investigations
into him, thus equipping him with the latest information on
progress, is not acceptable.
3.0ll
it.
This would result in other
with disapproval and readily put
There is no advantage to me
Indeed,
the
preparation
of
in taking
the
material
such a
was
an
The
progress
of
my
Inquiry,
so
far
as
it
Volume 1
-47-
Chapter
Mr Packer's Complaint
1.
2.
3.
4.
Private
examination
affecting Mr Packer.
5.
Preparation
and
delivery
of
summaries
of
relevant
criminal
activities to the Attorney-General,
and their delivery to the National
Crime
Authority,
identifying
Mr
Packer as the subject of current
investigations.
6.
of
witnesses
3.014
This occurred in September and October 1983 in
Brisbane.
The associates were represented, and once Mr
Packer's name was mentioned,
his
representatives were
present too. The transcript was available, and was taken by
them.
3.015
The
11
Volume 1
-48-
Chapter
Mr Packer's Complaint
substantial
witnesses
sums
were
of cash which
giving
direct
was
investigating.
evidence,
for
The
they
had
my enquiries.
Immediately the naming occurred I gave the
opportunity
to Mr
Packer 1 s
representatives
(who
were
present) to proffer an explanation so that if there was an
innocent account, it could be revealed without delay.
They
declared that there was an innocent account, and as soon as
Mr Packer returned from overseas,
it would be given.
Arrangements were made for this to be done.
3.017
my
Commission
and
have
explained
matters
which,
if
left
3.018
Instead of doing what his Counsel had promised
he would do, he attempted to stop my enquiries.
It was he
who initiated the Federal Court action, drawing into the
fold all
this
action,
which
he
encouragement from me, he
was in.
chose
to
accentuated
step.
But having
Volume 1
-49-
By
take
without
any
the difficulties he
result
Chapter
Mr Packer's Complaint
(a)
Volume 1
-50-
Chapter
Mr Packer's Complaint
in that;
I did not seek it to be
done;
I did my best to avoid it.
There is
little doubt
that
its
revelation has harmed Mr Packer's
reputation;
but the responsibility
lies other than on my shoulders.
(d)
3.019
thestl
mine.
3.020
The
Federal
Court
proceedings
were
unsuccessful and as a result, arrangements were made for his
appearance before me.
They had, however, one adverse
result.
By bringing them Mr Packer had imposed substantial
delay on my enquiries preventing me from calling him prior
to Christmas 1983. In the result, I was compelled to call
him in February 1984. At this time the Federal Government,
being concerned to establish the Crime Authority, had
imposed
time
enquiries.
Volume 1
limitations
on
the
completion
of
these
-51-
Chapter
Mr Packer's Complaint
3.021
at Hawthorn, Melbourne.
He was represented.
Again, being
sensitive to damage that may have been occasioned to his
reputation by matters being put whilst their development was
still in its infancy, most of the examination of Mr Packer
was done privately.
The only part done publicly was that
relating to the cash payments of which his associates had
spoken
including a
of the
I have
and
defied
rational
belief.
But
those
Volume 1
-52-
Chapter
Mr Packer's Complaint
4.
3. 023
Immediately after Mr Packer's examination, I
conducted private examinations of his lawyers concerning the
removal of a file from their offices to Singapore and Hong
Kong.
Mr Packer,
of course,
is
file
frustrating
was
deliberate,
my
enquiries
aware
of what
took
the
fully
and
and
for
was
at
the
purpose
the
of
specific
Naturally I
so.
3.024
The
quickly
complex
enquiries
into
Packer-related
matters
breadth a number of
death of Mr Coote.
conduct
of
such
investigations
well
knows
that
Volume 1
-53-
Chapter
Mr Packer's Complaint
Mr
Packer
has
drawn
the
analogy
with
the
3.028
revelation
Volume 1
-54-
Chapter
Mr Packer's Complaint
transmission
ultimately
to
the
Crime
Authority.
As
The
proclamation
of
the
National
Crime
have analysed
I will not
Act,
Authority only
could
pass
material
if it was conducting an
Volume 1
-55-
to
the
Crime
investigation into
Chapter
Mr Packer's Complaint
investigations,
for
transmission
of
information
statutory provisions.
was
There
language of my choosing.
This is
important to
appreciate.
The Act speaks of there being "allegations" or
"suspicions" that relevant criminal activities have taken
place or are taking place.
That is the issue addressed by
the summaries; not conclusions that they have occurred.
Volume 1
-56-
Chapter
Mr Packer's Complaint
or
allegation
by
mere
Being
satisfied
suspicion, the summaries encompass all possible enquiries on
which I
hold material.
It will be appreciated that
investigations may be at varying stages.
Some may be just
3.035
wrong
to
assume,
as
Mr
Packer
has
Therefore it
done,
that
the
They do not.
3.036
The summaries were forwarded to the Crime
Authority because they related to matters which need further
investigation by it.
Not all matters were sent there.
A
vast number have been sent to various law enforcement
These are the more
agencies over the past four years.
advanced matters.
Volume 1
-57-
Chapter
Mr
Mr Packer's Complaint
Volume 1
-58-
it
is
necessary
Chapter
to
Mr Packer's Complaint
3.041
As soon as the material was published in the
National Times, discussion took place as to what could be
done
mine
in law.
The
but belonged
no longer
the Crime
Authority.
I was merely the source. Their publication did
not affect my future investigations but theirs. After all,
by delivery
of
the
summaries
was
disposing
of
much of
those investigations.
3.042
In
these
circumstances,
was
heavily
circumscribed in my powers.
A close examination of the
Royal Commissions Act revealed that there were only certain
circumstances permitting an order prohibiting publication.
As I explained in my ruling, had my powers been wider, I
would have prohibited all of them.
But my powers were not
of that width.
I was supported in this view by the opinion
of the Solicitor-General.
I exercised my powers to the
full, which was merely in respect of one matter, 11 Flesh 11 My
reasons were:
In early July this year at the request of
the Prime Minister I had put together a
number of summaries of investigations
which were the concern of my Commission.
Part of the task was to ascertain those
investigations which met the criteria of
the National Crime Authority Act.
Their
number was originally 40 but was shortly
increased to 42.
It was not possible under the Royal
Commissions Act, in particular Section
6P(2A),
to communicate information or
furnish evidence, documents or things to
the National Crime Authority until such
time as that Authority was conducting an
appropriate investigation.
I sought the
assistance
of
the
Commonwealth
Attorney-General who in turn obtained the
opinion of Sir Maurice Byers Q. C., the
immediate past Solicitor-General.
Sir
Maurice advised that I could refer these
42 summaries to the Attorney-General who
could, if he wished, pass them on to the
National Crime Authority.
Volume 1
-59-
Chapter
Mr Packer's Complaint
Volume 1
-60-
Chapter
Mr Packer's Complaint
(3)
any
it;
(b)
the
contents
of
any
document, or a description
of
any
thing,
produced
before, or delivered to,
the Commission; or
(c)
Volume 1
-61-
Chapter
Mr Packer's Complaint
reasons
give
the
following
which was
also
to prohibit
hearings
of
related
the
Solicitor-General's
view
only
Authority,
to
the
to matters
and
adduced
despite
contrary,
they
took
at
the
the
narrower view and decided they did not have power to make
such an order. They pressed for an injunction to be sought
by the Attorney-General.
As I understand it, he took the
view that if they would not make the order, he should not
seek an injunction.
3.044
mention
these
matters
to
disclose
the
Nothing could
11
implicit endorsement" of
truth.
As for public disassociation, which Mr Packer also
suggests I should have done, this was a difficult question;
in my considered view the best I could do consistent with
honesty was neither to affirm nor deny the accuracy of the
publication.
Volume 1
-62-
Chapter
Mr Packer's Complaint
was
nothing
in
the
publication
which
identified
any
To suggest,
in these circumstances,
that I
am
is patently ridiculous.
publicised Mr
Packer's
name,
or
suggested
At
to
To
be
it
Final Report
3.046
many
Royal
Commissions
in
Australia
There have
where
criminal
not
or
Volume 1
-63-
Chapter
Mr Packer's Complaint
of many criminals,
criminals.
or persons
suspected of being
In the course
of my Commission I
have
frequently
identified
people
suspected
of
criminal
activity. Their names and details of their activities have
That is sufficient.
3.049
There have been occasions when I have reported
upon major criminal activities.
My fifth report was one
such report.
The offenders have been committed for trial.
They know full details of the charges and the evidence.
This was achieved by the ordinary processes of the criminal
law. I did not seek to discharge that task myself.
3.050
individuals.
In my current report I
deal
with
many
None of them have received the rights that Mr
Volume 1
-64-
Chapter
Mr Packer's Complaint
Inquest.
Mr Packer may attend that if he wishes, and he
will there learn all he wishes to know. In another volume I
recommend the matter being placed in the hands of the
Director of Public Prosecutions.
Should he decide to take
civil or criminal proceedngs, and should they involve Mr
Packer, he will receive his full measure of rights.
The
remainder are
investigations
subject to
conducted
agencies.
Should these result
in civil or criminal
proceedings, again he will receive his full rights.
At no
point have I recommended that his liberty be
that his property be forfeited, that his name
denigrated.
Nor have I recommended that these
published, other than by transmission to the
concerned.
restricted,
be publicly
volumes be
Governments
3. 052
In these circumstances, I do not believe the
Salmon rules are appropriate for the circumstances affecting
Mr Packer.
In truth, he seeks more rights than those to
which the ordinary citizen
why his request should be
any basic civil liberties,
will be denied them in the
Volume 1
-65-
Chapter
forms
submissions
to
to
be
be
completed,
prepared,
letters
decisions
to
to
be
be
written,
communicated.
All
generally
and
of
no
less
this
is
so
to
daunting
a
new
to
Royal
the
Commissioner
and
usually
short,
time
limit
public
in which
Within a
to
report
there is not room for a Commissioner to attend both to the
subject matter of his inquiry and to the myriad of Public
Service requirements which need to be processed to establish
proper financial, personnel, administrative and operational
management. For him to try to do so will result in neither
being done properly.
4. 003
The
Commonwealth
Letters
Patent
which
appointed me Commissioner on l October 1980 required me to
present an interim report on the results of my inquiry not
later than 31 March 1981 and to present a further report on
the
results
of
my
inquiry,
with
my
recommendations,
not
Volume 1
-66-
Chapter
4.004
To achieve such a requirement one must, as I
did, rely heavily on two things:
first, a Commission
Secretary
of
the
highest
order,
and
secondly
the
establishment and maintenance of good working relationships
with the Department of State which is responsible for the
servicing of Royal Commissions.
The importance of a capable and efficient
4.005
Secretary cannot be overstated. Not only is he responsible
for the overall management of the Commission but he is in
many respects the linch-pin of the organisation, both
internally and with the Public Service generally.
Ideally
he should be a public servant of some years' standing,
should be drawn from what is now the Senior Executive
Service, should have a sound background in both management
and policy advising (though not necessarily related to the
subject area of the Commission), and should be able to bring
to
a
Commission
a
high
degree
of
Public
Service
professionalism.
I was fortunate to have the services of
such a person in Mr G. Hutton.
He commenced with the
Commission on 31 October 1980 and remained with it until 3
August 1984 when he resigned from the Public Service.
4.006
Volume 1
-67-
for
the
overall
successful
Chapter
4.007
for
the way in which they have handled, with sympathy and speed,
the
very
many
requescs
which
the
Commission
has
placed
not have
regional
offices)
it was
decided
to
Volume 1
-68-
Chapter
Commission.
I should like to place on record, however, my
appreciation to the officers of DAS in Melbourne for the
services they have provided over the years.
4.010
The
Commission
was
also
assisted
by
other
Commonwealth
agencies,
notably
the
Commonwealth
Court
Reporting Service.
Officers from that Service attended and
transcribed all 447 hearings I held in all States and in the
Australian Capital Territory involving 1054 witnesses and
20260 pages of transcript.
I am particularly grateful for
the services they provided so willingly and cheerfully.
4.011
Officers
Construction
and
provided
of
the
assistance,
the
DAS
Department
Property
especially
in
of
Division
the
Housing
and
have
also
relocation
of
the
4.012
At the commencement of my Commission on 1
October 1980 the staff comprised Ms M Newport, interim
Secretary, Mr D. Meagher (now of Queen's Counsel), Mr R.
Wild of the Melbourne Bar, Mr J. Buxton an officer seconded
from the Attorney-General's Department, and a handful of
support staff.
It soon became apparent that a second
legally qualified officer was needed and in November 1980 Mr
B. Harkin of the then Deputy Crown Solicitor's Office in
Victoria took up duty with the Commission.
As
mentioned Mr G. Hutton commenced as Secretary
Commission on 31 October 1980.
Volume 1
-69-
I have
to the
Chapter
4.013
In those early months, and especially given
the need for an interim report by 31 March 1981, the
workload of the Commission was enormous. By January of that
year, only four months after I had commenced, the staff
numbered 31 - much greater, I believe, than many Inquiries
now reach during their lifetime.
It was
indicative,
however, of the resources which ultimately would be needed
to make investigative inroads into the type of criminal
activities which, even at that time, had come to light.
4.014
By
a
process
of
evolution,
especially
involving the development of analytical techniques described
elsewhere in the Report, the staff of the Commission grew to
a peak of 103 in July 1984.
The investigation of links
between painters and dockers and the tax avoidance industry,
which occupied the Commission during the second half of
1982, added greatly to an already heavy workload.
In
October
1982
the
staff
numbered
64
and
in
the
following
4.016
Broadly,
that
is
the
organisation
which
existed at the end of my Commission. As at 1 September 1984
it numbered 102 people who, by general categorisation, were
broken into:
Volume 1
-70-
Chapter
40
32
ADP
16
10
Registry
Administration
4.017
must
be
said
that
the
staff
counse 1
of
the
or
application,
temporary,
have
support,
provided
assistance,
that
dedication,
knowledge
and
Volume 1
-71-
Chapter
Accommodation
4.019
My
4.020
for
pressing
4.021
4.022
Similarly,
all
furniture,
fittings
and
other
to
the
Authority.
Principal
amongst
these
is
the
Volume 1
-72-
Chapter
4.023
Expenditure
on
the
Commission
amounted to
$1,153,343 in 1980-81, $2,358,130 in 1981-82, $2,963,805 in
1982-83
and
last
amount
$5,956,723
in
1983-84;
the
includes, as I have indicated, an extraordinary item of
$940,860 being expenditure incurred in the fit-out of the
Volume 1
-73-
Chapter
4.025
items
4.026
4.027
It
is
in
Each visit
is
costly
exercise
and
the
4.028
to
provide
each
with
financial
management
plan
Volume 1
-74-
Chapter
4.029
should
Secondly,
have
particularly
some
knowledge
government
Commission
ideally
of
financial
financing.
Secretaries
management
recognise,
and
however,
say,
25.
4.030
SMOS
4.031
Volume 1
-75-
Accompanied by Messrs
Chapter
Hutton,
Meagher and Buxton,
and the Victorian Chief
Commissioner of Police, Mr S. I. Miller, I travelled to Hong
Kong to consult with Hong Kong Government authorities,
notably the Independent Commission Against Corruption.
Singapore (30 November - 5 December 1982)
Investigation of the Hamidan scheme indicated
significant
4.032
-76-
for confidential
Chapter
4.033
At Annex 3 is a list of reports
presented to government, and other publications.
Volume 1
-77-
have
Chapter
EXPENDITURE
ITEM
1980-81
1981-82
1982-83
APPROPRIATION
1983-84
1984-85 (a)
Commissioner's
Fees and
Expenses
195,615
377 '782
388' 149
374,398
129,000
Staff Expenses
30,356
61,254
135,545
85,085
7,000
292,239
686,264
708 '773
1,665,458
508,000
Consultants
2,825
4,481
3,235
Witness'
Expenses
4,277
9,402
15,587
24,907
2,000
Instructing
Solicitors
7,869
25,709
38,992
Counsel Fees
and Expenses
146,579
360,253
481,936
755,008
221,000
Union Counsel
127,357
50' 716
103,563
95,123
1,000
Salaries &
Allowances
292,970
681,866
981,252
1,335,925
480,000
41,791
5,000
115,000
Office
Expenses
Overtime
Property Costs
33,738
70,499
106,420
1,480,676
Furniture
19,518
29,904
353
98,352
$1,153,343
$2,358,130
TOTAL
$2,963,805 $5,956,723
$1,468,000
ANNEX2
PUBLIC HEARINGS:
169
CONFIDENTIAL HEARINGS:
278
20,260
1,054
Details of Hearings
VICTORIA
Public Hearings
Confidential Hearings
101
190
Public Hearings
Confidential Hearings
31
38
QUEENSLAND
Public Hearings
Confidential Hearings
17
18
SOUTH AUSTRALIA
Public Hearings
Confidential Hearings
8
3
WESTERN AUSTRALIA
Public Hearings
Confidential Hearings
10
24
TASMANIA
Public Hearings
Confidential Hearings
0
4
Public Hearings
Confidential Hearings
169
278
TOTAL HEARINGS
447
Volume 1
-79-
Chapter
ANNEX 3
REPORTS AND OTHER PUBLICATIONS
Interim Reports
Interim Report No 1
(Delivered on 30
March 191.Sl)
Interim Report No 2
(29 July 1981)
Interim Report No 3
(18 December 1981)
Interim Report No 4
(27 July 1982)
Interim Report No 5
(25 July 1983)
Other publications
Research Sta:t;f:
D.R. Meagher.
Volume 1
-80-
Chapter
INTRODUCTION
5.001
The
purpose
general picture of
Commission over its
of
this
chapter
is
to
give
to
the
same
point.
But
at
the
time
they
By my appointment,
In
earlier Reports I had set out the manner in which that task
was to be accomplished.
I t was a
task that required
considerable application of time,
techniques.
5.003
Volume 1
-81-
Chapter
Operational Overview
whom I
I
am
was enquiring
quite certain
was difficult
that I
have
and
not
My
earliest
operational
target
was
the
Volume 1
-82-
Chapter
Operational Overview
was astonished,
and have
Volume 1
-83-
Chapter
Operational Overview
investigate
criminal
activities
of
kind
far
more
targets
albeit
ones
in
respect
of
whom
my
-84-
Chapter
Operational Overview
thereby,
less
5.010
fall
my
investigatory
lap.
Rather,
became
known
through
a
series
of
associations.
I will deal with some
remainder of this chapter.
their
existence
unimaginably
odd
of
the
those
in
MACBELL MINERALS
S.Oll
to
He
time
to the Union
Volume 1
-85-
Chapter
Operational Overview
5.012
It
was
an
odd
group
of
men.
funeral
In
the
association
of
circumstances
men
suggested
determined
it
by
that
was
peculiar
necessary
to
At
office by members
found.
An
of my
examination
staff in his
revealed
that
company
the
they
company,
supplied
generous
by Giannarelli
branch of
but
the Commercial
most
The books
of
it
came
from
Bank of Australia.
The
to
many
activities.
other
four years.
associated
In this sense,
Each man in
criminal
turn has
organisations
and
5.014
Examination
of
the
company's
accounts
name
showed
of
fraud
He was convicted
Volume 1
-86-
Chapter
Operational Overview
released.
The land in question had been bought from or in
conjunction
with
had
complicated
corporate dealings in New South Wales which during the
course of his trial necessitated the calling of evidence by
connection between
the Macbell
Group,
The
then
and
investigation.
It was the connection with this group that lead to the tax
avoidance industry and the "bottom of the harbour" companies
which were to figure so prominently in my work in the middle
years of the Commission.
5.015
detailed
should
examinations
and the
concerned
bank
indicate
into
the
other men.
As
records
were
that I
affairs
conducted very
of Giannarelli,
because
of
evidence
given
were
referred
to
the
to
examination
be
set aside.
resolved,
of
the
Those proceedings
effectively
Giannarellis.
It
took
preventing
was
three
further
discovered
on
5.016
The man
Volume 1
-87-
Chapter
Operational Overview
and personal
activities.
This
analysis
comprises
investigations
and
accordingly
will
not
detail
5.017
turn
next
to
the company
because its activities in
false.
Yet the
it was. a man
No
group) made the trip.
through and many "deposits" were lost.
It transpired
that
Volume 1
-88-
Chapter
Operational Overview
fraud
arising
out
of
similar
activities.
He
apparently
the
Meinerhagen
gang
in
Germany.
Last
year
he
was
11
I write this.
5.019
Further
investigations
revealed
that
Macbell
Minerals
explanation
Volume 1
-89-
was
ever
given
Chapter
for
Operational Overview
5.020
showed
millions of
movement was
small
suburban
bank handling
hundreds
of
dollars.
The firm orchestrating this money
Thus I had arrived at the settlement room
5.021
never
found.
called
as
witness)
the
records
of
were
even at this
stage I
to fully
examine
them.
They detailed much of the taxation fraud which had
been undertaken by
and identified clients and others
also involved in the fraudulent activities.
5.022
companies of doubtful
had
been
involved
in
other
1
reputation.
In the early 1970 s he
to
take
up
He
had
directorship
a
had been with
in
in
in
in
during
such.
1977
formed
they
subsequently,
his
with
director of
Volume 1
and
disc lose
at
-90-
Chapter
Operational Overview
company crashed.
The man
So,
by
October
1981,
was
aware
of
the
between the
group and the
It became apparent that I had been introduced to
was
was
1961
(Vie).
This
investigation was
I became aware,
Volume 1
-91-
I said:-
Chapter
Operational Overview
5. 024
I went on in that Report to indicate that my
continuing investigations were frustrated by an inability to
obtain access to Taxation records and to results of
investigations carried out to that time by officers of the
Tax Department.
I cast the situation in the following
terms:"The situation has now been reached by
the Commission in this area of its
investigation where firstly access is
essential
to
the
records
of
the
Commissioner of Taxation and secondly
there
is
a
need
for
the
closest
co-operation between this Commission and
the Taxation Office in the furtherance of
its
investigation.
The
Commission
requires
the
active
assistance
of
Taxation
Investigation
Officers.
I
require
access
to
taxation
records.
Joint action of this kind is as necessary
in this area as it has proved to be where
the Commonwealth and the States have set
up joint task
forces
to investigate
criminal organisations whose activities
cross State borders.
Provided there is
this joint co-operation, there is good
reason
for
believing
that
the
Commonwealth
will
be
able
to
take
concerted action in this area of tax
avoidance with the countless financial
benefits not only in respect of past
schemes but also in the deterrence of
future frauds."
(Interim Report No. 3, p. 16)
Volume 1
-92-
Chapter
Operational Overview
5.025
The
Government
was
prepared
to
accept
my
Lest
it
investigative resources
be
were
thought
involved
that
all
of
my
in this area of tax
DEAD MEN
5.027
In
the
March
1981
Interim Report,
reference
with
those
at
the
Williamstown
Naval
Dockyard
men
were
obtained.
Confirmation
was
thereby
men"
working
in
another
State
using
the
identity
assigned to him.
Volume 1
-93-
Chapter
Operational Overview
John Knight
5.028
11
Allan Bees".
This man
an
compensation.
had died
injury
This
for
was
in Melbourne
which
he
notwithstanding
claimed
that
in December 1979.
11
workers
Allan
Bees"
As Bees'
fraudulently
11
He did
He
was
of
facing
two
separate
theft
charges
arising
out
prior
Volume 1
-94-
Chapter
Operational Overview
are
presently extant.
time
in
New
South
He
has
Wales
absconded
(where
he
once
was
again,
this
allowed
bail
The
case
of Anthony
Michael
Bissett
was
of
11
the
facilities
offered
by
the
Union",
Volume 1
11
breaking aliases".
-95-
Chapter
Operational Overview
Bissett 1 s
5.035
Subsequently he was located in Tasmania and
appeared as as witness in June 1981, both in Hobart and
Melbourne. He would not admit the identity of the member of
the Union Executive in Melbourne who had facilitated his
change of name.
He did agree that it was either Jack
Nicholls, the secretary, or Doug Sproule the vigilance
officer. He admitted using the different names during his
movements around Australia.
5.036
His presence in Hobart was brought to the
attention of the Victorian police authorities and he was
extradited to Victoria to face the charges which had been
pending since January 1979. He was thus unable to avoid the
consequences of that previous criminal conduct.
Guido Spiller
5.037
A separate fraud using false names (but not
involving "dead men") was exposed in hearings in June 1981.
This involved one man making two separate claims for
compensation
against
different
employers
but
covering
overlapping periods of employment.
The man involved was
Guido Spiller.
He used the assumed names of John Joseph
Spiller and
Peter John
Wilson
when
making
workers 1
compensation claims in the period 1976-1980.
I
have
referred to this matter in a previous Report (as I have with
the matters of Knight and Bissett) and will not repeat the
details here.
Volume 1
-96-
Chapter
Operational Overview
Phillip Scott
5.038
clearly not
identical
substantial effort
He
gave
As
a
a
false
result
name
of
and
he
failed
information
to
given
answer
by
my
11
stealing 11 it.
Nor has
to the source of his
identity.
He refused to give evidence on any occasion on
which he has been called.
Both men have subsequently been
fined for failing to answer questions
provisions of the Royal Commission Act.
Volume 1
-97-
pursuant
to
Chapter
the
Operational Overview
5.040
ascertain
the
director
of
Macbell
one
of
the
dummy
Volume 1
-98-
Chapter
Operational Overview
wife
basis
of
Charles
for
Wootton.
these
payments
was
save
unable
that
in
to
establish
both
cases
the
they
This
amount
seemed
to
be
unusual
unemployed housewife.
As a result I caused
out
a
fairly
extensive
analysis
of
arrangements.
for
an
to be carried
her
banking
5.045
preliminary
inspection
of
volume
and
propose
to
say
little else
about
low profile
Nevertheless,
large
been
amount
of
analytical
work
has
done
them
in my
a very
which
is
Volume 1
-99-
Chapter
Operational Overview
of that operation.
Certainly the painter & docker Scott who was identified as a medium level SP bookmaker - also
figured prominently in that part of my work.
Tax Evasion
5.046
following
of
be
company
view to
stopping the
tax
transactions
to
investigate
thoroughly.
It
Federal
conducting
Court
to
prevent
me
first
this
instance
examination.
and
on appeal.
5.047
This
tax
investigation became
exercise. Just as
company in turn took me
operated by Johanson,
headspinning
had taken me to
that
to
He
had
been
involved
in
other
criminal
Volume 1
-100-
Chapter
Operational Overview
harbour".
was a flat in
expresssion
"bottom
of
the
But
that
is
jumping
ahead.
Throughout
the
the
the
industry.
5.050
McCabe and LaFranchi had been critical of the
lack of assistance given to them by the Tax Department.
I
was able to obtain copies of legal advice given to the
Commissioner of Taxation during
the period
from
the
mid-1970's onwards.
It was apparent from that advice that
action could have been taken to expose a particular tax
promoter, in particular Brian Maher.
Nevertheless, because
of what I found to be the gross inefficiency of the Perth
office of the Commonwealth Deputy Crown Solicitor no
proceedings were taken. My investigation into those matters
formed a substantial part of volume one of my Fourth Interim
Report. It is hardly necessary to repeat those matters here
save
to
indicate
the
ascertaining the facts.
Volume 1
time
-101-
taken
operationally
Chapter
in
Operational Overview
5.051
The major thrust of the Fourth Interim Report
was that there be appointed a 11 task force'' (by whatever name
called) whose function would be to prosecute the promoters
of what I regarded as fraudulent tax evasion schemes.
That
force would also be charged with the responsibility of at
least coordinating the recovery by civil proceedings of
outstanding tax. My view was, and still is, that the law as
it existed at all relevant times was sufficient for the
purpose of both criminal and civil proceedings.
I did not
recommend retrospective legislation.
5.052
Government
the
the
assume
overall responsibility for the
handling of
the prosecutions
for
the
alleged taxation frauds referred to as
"bottom-of-the-harbour"
schemes and for
coordinating
the
recovery
by
civil
remedies under existing law of the amounts
thereby lost to the Commonwealth . "
me the
I have
Voll.\me 1
-102-
Chapter
Operational Overview
5.054
in
Notwithstanding
my
major
involvement
with
do not propose
Firstly
there
would
seem
to
be
an
assumption by the painters and dockers
that they were entitled to act without
regard
to
the
law.
Secondly
that
assumption would seem to be based on the
ability of the painters and dockers to
rely on the fact that other citizens would
not report their activites to the police
because
it
was
well-known
that
the
painters and dockers were a group of whom
ordinary
people
should
be
terrified.
Thirdly there was the reality of violence
as demonstrated in the hotel.
Fourthly
there
was
the
threat
of
additional
violence of a major kind.
Fifthly there
was the imposition on the hotel of an
illegal activity. 11
Volume 1
Operational Overview
where
would
have
This was
been
much
submitting
those
to
the
Taxation
Department
as
his
own.
By this means, he was able to obtain refunds for
himself in respect of a number of different men.
This
matter became the subject of a full investigation by members
of the Australian Federal Police with whom officers of my
Commission cooperated. In particular, access was granted to
our database and a coordinated approach to the matter was
achieved.
5.058
over the conduct of this matter and Peter Wilfred King was
charged with offences.
He was convicted at the Melbourne
Magistrates Court in December 1983 and sentenced to a term
of imprisonment. This is an example of an operational area
where the contribution required of me
after initital
identification of the offence
became minimal although
there was a continuing liaison and,
to some extent,
coordinating role involved.
5.059
activities
of
investigating the
I obtained
Volume 1
-104-
Chapter
Operational Overview
An accountant
men.
was identified as a
was promoting
transaction of
Volume 1
-105-
Chapter
Operational Overview
5.061
particular
5.062
During the next six months, the investigation
into this company played a major role in my operational
activities.
A total of 56 witnesses were called, 2,300
pages of transcript recorded, 450 exhibits tendered and
42,000 pages of documents examined.
(During that same
period, incidentally, I took evidence from another 130
witnesses and received tens of thousands of pages of
documents relating to other matters of on-going concern.
The desirability of my maintaining the impetus of other
investigations necessarily curtailed the time available to
devote to the investigation of the oil drilling company.)
5.063
During the period of the operation I liaised
closely with the Queensland Fraud Squad,
the Special
Prosecutor's Office conducted by Mr Redlich, the Tax Office
and other Government Agencies.
Charges were laid by the
Queensland Police against the principals.
charges were laid against various men in
Subsequently
Perth.
The
Volume 1
-106-
Chapter
Operational Overview
5.064
1983.
submitted
Interim
Report
No.
in
July
Unfortunately,
5.065
should
that
state
does
that
in
not
seem
the
course
to
of
have
this
Volume l
11
-107-
Chapter
Operational Overview
demands
of
the
Commission
have
certainly
In 1974,
criminal and
have
conducted
an
exhaustive
investigation
appears as Volume 6.
I say summary - an analysis has been
conducted of the affairs of these people.
That analysis is
exhaustive and is the result of many hours of labour by
members of my staff and in particular of senior assisting
counsel.
It contains, approximately 1165 pages and results
from consideration of the evidence of 38 witnesses, 395
exhibits and 33053 pages of documents.
The analysis has
been made available to appropriate bodies to assist in the
continuing policing of various areas of criminality.
There
is no doubt that the former associates and friends of
Carrell
will
continue
to
create
work
for
those
entrusted
Volume 1
-108-
Chapter
Operational Overview
5.069
Carroll
I
should
indicate
that
the
investigation and the extended links which have been
established have led the Commission to a wide variety of
other criminal activities and, in some cases, organisations
or networks. These have been both in and without Victoria.
A solicitor
used
by
Carroll
in Melbourne
has
been
investigated, in conjunction with the Victorian Police Fraud
Squad; that man has been referred to the Special Prosecutor
and I understand that charges have now been laid.
5.()70
extended
Furthermore,
links with the
it was
Carroll
as a
Group
result
that I
of the
visited
had
the
leading
his
tax
evader,
Donald
Lockyer.
11
dummy
Lockyer
11
in
Volume 1
-109-
Chapter
Operational Overview
5.072
I obtained documents from Lockyer' s Melbourne
office and evidence was given by members of his staff.
I
discovered
he
was
bankrupt
and
had
committed
numerous
and Redlich.
Lockyer
his
issued
and
against
obtained.
wife
both
consequent
of
Prosecutions
them.
were
to
taxation
"Mareva"
launched
assessments
injunctions
by
Mr
Redlich
were
for
to
defraud
the
revenue
of
the
Commonwealth.
5.073
I
believe
that
the
particular
"joint''
operation involving Lockyer has been an illustration of a
very successful undertaking by the investigatory body - with
a selective and proper use of its powers - liaising with
prosecutorial and civil recovery agencies.
The action taken
by Mr Redlich' s group was speedy, efficient and effective
for the purpose.
Other targets suggested themselves during
the course of my investigation into Lockyer's affairs and I
will refer to them below.
5.074
operational
it
Insofar as
matters I repeat
has
had
here
that
on
some
effect
I
and my senior
Volume 1
-llO-
Chapter
Operational Overview
as
had,
of
saw
them,
course,
in
the
already
dealt
with
fight
against
the
crime
in
As I
to
the
Standing
Committee
of
the
Senate
on
the
personalities
in
respect
of
whom
operations were able to proceed during 1983.
Volume 1
-111-
enquiries
Chapter
and
Operational Overview
Ian Beames
5.077
respect of Lockyer I
was
directed
Queensland accountant
Ian Beames.
to the activities of a
This man already had a
white
collar
crime.
At
the
time
commenced
my
I
1
in
dealings
with
the
Nugan
Hand
was
He
Volume 1
-112-
Chapter
Operational Overview
Kerry Packer
5.080
developed
more
fully
in
&
S. Meats.
separate
Those matters
volume
of
this
invested,
I was anxious
was
Volume 1
-113-
Chapter
Operational Overview
to
it.
Mr Coote' s
Ian Coote.
This had a
familiar
involved,
suicide.
My views and
SP Bookmaking
5.084
In Spring 1983 preparations were made for
public hearings in respect of the SP bookmakers Price and
Scott.
The purpose of those hearings was to indicate the
level of income of these men and to expose those activities
to public gaze. As it turned out, Price was not able to be
identified by name as he had been apprehended conducting an
SP operation when served with his subpoena to attend before
the Commission.
As it was then thought that he would be
prosecuted and before the courts in a relatively short time
I deemed it appropriate not to have his name released.
Volume 1
-114-
It
Chapter
Operational Overview
'
5.085
quantified
i
During the course of those hearings, counsel
the loss in !revenue sustained by Governments
to
justify
his
being
given
favoured
of
a
the
visit
evidence
from
that
he
number
Volume 1
-115-
was
of
to
give.
painters
and
He
had
dockers
Chapter
Operational Overview
dockers
involved
eventually,
referred
to
they
were
refused
the
called
to
but,
answer
Attorney-General
as
did
Mr
questions.
and
in
Michael
They
due
were
course
prosecutions followed.
I refer to those matters elsewhere
in this Report. A considerable part of my time was taken up
in investigating these allegations which seemed to be
crucial in their application to the role that a Royal
Commissioner plays.
S.A. Union Extortion
5.088
During
the
term
of
my
Commission
had
returned to
Volume 1
-116-
Chapter
Operational Overview
(a)
(b)
(c)
5.090
have
been monitoring
various
drug
offenders
and
have
resulted
from
information
obtained,
Where possible,
5.091
foul of the
may provide
This is an
Volume 1
-117-
Chapter
Operational Overview
5.092
There were
number of extant
investigations
as
at
30
June
1984.
In
respect
of
these
matters
of
proposed
sincerely
trust
with
that
the
Authority
will
proceed
those
investigations.
Other Matters
5. 093
to
highlight
developed
the
from
major
ones
another.
and
have
to
demonstrate
no
doubt
that
how
each
if
the
have
specified
criminality
in
what
this
have
chapter
called
there
are
"major''
areas
others
of
of
some
Volume 1
-118-
Chapter
INTRODUCTION
6.001
My intention in this chapter is to detail the
court proceedings which have been bought against the
Commission during the last four years. Those proceedings with one exception in the Federal Court - have sought to
challenge my investigations into particular subject matters.
There have been various writs, summonses, notices, hearings
and appeals taken by different parties but in each and every
case they were to no avail in law.
Each one of those
proceedings has resulted in a dismissal of the challenge to
the Commission's work.
Nevertheless,
they have
been
effective in delaying my progress; in no case fatally to the
operation but in some cases in such a way as to leave some
investigations incomplete.
Because it is important to see
the length to which parties will go in expense of both time
and money in seeking to prevent a close enquiry into their
affairs, I will summarise these court proceedings in the
course of this chapter.
6.002
These proceedings may be regarded, and I do so
regard them, as the legitimate expression of a citizen 1 s
right to challenge the activities that are perceived to
affect his interest adversely.
I have no quarrel with this
legitimate and open conflict.
6.003
Volume 1
-119-
Chapter
then described)
will
summarise
involved.
the
and
three
major
In each case I
investigation
which
was
proceedings.
There
were
actions
in
which
was
to
other
be
stopped
interlocatory
by
those
proceedings
matters too.
Giannarelli
6.004
the managers
of various
Australasia Ltd.
branches
to Giuseppe Giannarelli
family.
On
28th July
the
the
relating
behalf of
of
issued subpoenas to
family
1982
an
before
Bank of
Mr.
National
to produce records
Nisi
Justice
was
sought
Crockett,
of his
of
that I
on
the
show
of
the
applicants.
Guiseppe Giannarelli
stated
in
the
affidavit
"nothing
Dockers
to
do
Union".
Melbourne
with
The
undertook
the
State
the
Federated
Crown
defence
of
Ship
Solicitors
this
There
was
an
abundance
of
and
Office
matter.
Painters
that
evidence
in
It
was
it was
linking
on
the
part
of
Giannarelli.
The
matter
was
Volume 1
-120-
Chapter
By
the
end
of
1981
had
commenced
"bottom of the
it
was
my
intention
to
of
examine
those
certain
evidence.
m~
A statement was
made by
following day a
Heap
that
reference.
On the
such an
enquiry! would
be
beyond
the
terms
of
March 1982.
6.007
Thereupon Ro s and Heap sought under the
Administrative Decisions (JUdicial Review) Act 1977 a review
of that "ruling" and of my idecision to summons and question
various witnesses in relati9n to their affairs. They sought
interlocutory injunctions to restrain me from proceeding.
The application for interlo tury relief was dismissed in the
Federal
Court
on
19th Ap il
1982
by
Ellicot
J..
(This
matter has been reported as! Ross -v- Costigan [1982] 41 ALR
319).
The
parties
Federal Court.
appea~ed
that
decision
to
the
Full
Volume 1
121-
Chapter
the delay
Volume 1
-122-
Chapter
still stands.
Faint's claims for declarations re~ain
abeyance and will be rendered abortive on return of
letters patent.
in
my
Boyden
6.010
Boyden gave
New
South Wales
an
order
for
review
of
those
decisions.
That application was heard ex-parte in the
Federal Court by Hr. Justice Lockhart on 2nd November 1982
and an interim injunction was obtained restraining me from
requiring
Boyden
to
comply
with
his
subpoena
until
5th
There has
obviously been a
substantial
This
Volume 1
-123-
Chapter
by the
issue of criminal
December 1982.
charges
against
Boyden
in early
On
in October,
15th October
1982,
1982 he was
and charged
that I was
with
then
On
26th
November
1982
the
evidence
solicitors
for
-124-
Chapter
made by Mr.
December.
The matter came on before His Honour on the
following day.
By then I had given an undertaking that it
was
my
intention
to
hear
the
relevant
evidence
in
confidence.
The court accepted this undertaking, despite
argument to the contrary from Huston's counsel, and the
application was accordingly resolved.
(This matter has been
reported as Huston -v- Costigan [1982] 45 ALR 559)
Peter Lloyd
6.015
Peter Lloyd was subpoenaed to appear to give
evidence and to produce documents.
He appeared during
hearings in Perth on 26th-27th October 1982 but failed to
produce all the documents in his possession as required.
Lloyd was a solicitor in practice in the firm of Dwyer &
Thomas in Perth.
He was to be examined about the part
played by his firm in the affairs of Hamidan and others.
6.016
On lOth December 1982 Lloyd made application
under the Administrative Decisions (Judicial Review) Act
1977 for a review of my decision to require him to give
evidence and produce documents. That application was based
on legal and professional
privilege and
the
alleged
irrelevance of the evidence required.
At a preliminary
directions hearing on 20th December dates were set for
mutual discovery, the filing of affidavits and the hearing
proper.
The order requiring discovery was subsequently
vacated and contested questions relating to discovery were
litigated
on
llth
February
1983.
The
substantive
application was set down for hearing on 2nd March 1983.
6.017
In
response
to
an
affidavit
filed
by
the
-125-
Chapter
6.018
On 12th April 1983 Lloyd was advised by the
solicitors acting on my behalf of a desire to have the final
hearing dates fixed. On 15th April 1983 a notice of appeal
was lodged in respect of the decision by Mr. Justice Toohey
to dismiss the notice of motion.
On 26th June
Volume 1
-126-
Chapter
when he had exhausted the appeal process (save for the High
Court).
The effective delay was of 12 month's duration
prior to becoming aware that proceedings had been issued
against him, thus negating the original subpoena.
Ray, Packer and Ors
6.021
&
Volume 1
-127-
Chapter
6.023
By 1st November 1983 it appeared that the
letter dated 27th October written at my direction to the
solicitors had not been received by them. On that date they
wrote advising that their client Packer was aggrieved by the
decision requiring him to appear and produce documents.
They therefore sought a statement pursuant to Section 13 of
the Administration Decisions Judicial Review Act 1977
setting out the findings I had made and the basis on which
the subpoenas had been issued. A similar "application" was
received from Mr. Ray's solicitors on the same day.
6.024
for Mr.
On 2nd
Packer.
opportunity
was
Hughes
QC
sought
appeared
to
issue
Volume 1
-128-
Chapter
cannot
leave
(1)
Is he (that is the Premier) aware
that allegations have been made by Mr
Frank Costigan in recent Federal Court
proceedings in Sydney that the Comalco
House Branch of the Bank of New South
Wales (now Westpac) was used in 1980 and
1981 by the Painters 1 and Dockers 1 Union
to finance drug transactions in the State?
(2)
Has he made any enquiries regarding
these allegations and if 11 so, what was the
result of such enquiries?
The Answer given by the Premier was:
11
1 am aware of these allegations and have
made inqu~r~es of the Police Deparment.
Tne Queensland Police have no knowledge of
any painter and docker involvement in drug
trafficking in this State, nor do the
Queensland Police have any knowledge or
information which would suggest that the
Comalco House Branch of the then Bank of
New South Wales was used to finance drug
trafficking in this State. The Queensland
Police have co-operated extensively with
the Costigan Royal Commission.
At no
time, however, have these allegations or
matters relating to them been raised with
Volume 1
-129-
Chapter
the
Queensland
Police.
I
am
most
concerned that the serious allegations
concerning our State would be made without
their
first
being
raised
with
the
Queensland Police.
I do not wish to add to the public
controversy
concerning
several
public
figures currently in dispute with Mr
Costigan,
but
I
am
concerned
that
allegations which on their face appear to
be without basis would be made by Mr
Costigan,
particularly
when
they
are
calculated to cause serious damage to the
reputations of such public figures."
In the course of the answer the Premier
refers to "several public figures".
He
does not specify who they may be, but I
assume he speaks of Messrs Packer, Ray and
their
associates,
all
of
whom
are
witnesses currently before this Commission
and who may be, at least in some cases,
regarded as "public figures".
I assume
further that the "allegations" to which
the Premier refers is an understanding, on
his part, that my investigations which led
to the calling of those witnesses were
directed at exploring the avenues by which
major drug importations are being financed.
The history of the matter is of short
compass.
Whilst
the
object
of
the
investigation
was
to
determine
the
financing of the drug transactions, the
staff of the Commission went to some pains
to conceal that purpose in the questioning
of
witnesses.
This
was
achieved
by
exploring
cash
transactions
of
a
substantial character
at
the
relevant
branches of the Bank of New South Wales,
by seeking explanations for them and then
checking
those
explanations.
No
"allegations" were put, for the Commission
was investigating, not putting a case.
The situation was reached where certain
large payments of cash were found to have
been made at the request of Mr Ray.
Counsel sought an explanation for those
payments and found that the cash had been
paid to Mr Packer, and that there were two
quite different reasons given for it. Mr
Volume 1
-130-
Chapter
Volume 1
-131-
Chapter
Volume 1
-132-
Chapter
developing
these
allegations
the
Royal
Commission into
the
Ship
Painters
and
Dockers Union has conducted itself grossly
unjustly and improperly ...
... These
innuendos
and
allegations
emanating from the inquiries of the Royal
Commission have caused immense suifering on
the part of my wife and children for nearly
a year.
They have been fuelled by what I
believe has
been malicious
rumour
and
innuendo
in
newspapers
controlled
by
commercial rivals of mine, John Fairfax and
Sons Limited ..
. Far from there being any particular
closeness
between
my
company
and
the
solicitor
(who also
had
a
substantial
shareholding in the listed company) there
were
serious
disagreements
about
the
conduct of the company's business.
There
was a well publicised takeover bid in which
Consolidated
Press
and
the
solicitor's
interest were on opposing sides.
Whatever
the Royal Commission 1 s relations with the
National Times may be, it is clear that its
staff does not read its sister publication,
the Financial Review . 11
The clear
involved,
Mr.
implication of
these
allegations
Packer
in
scheme
suggestion as absurd.
to
is
that
was
discredit
him.
reject
the
6.029
Thus,
have
and an endorsement of my
terms of reference.
Volume 1
interpretation of the
-133-
Inevitably
Chapter
there
have
resolved
issued).
been
long
delays
in
matters
being
it was
good
tactics
for
finally
appeals were
the various
Volume 1
-134-
Chapter
In this Report
recommendations,
which
I have made a
a re
collected
set
out
in
this
those
ea se
As some of the
previous proposals,
chapter
number of
for
early
it
of
n0w
is usefuJ
recommendations,
and
requiring
action.
The
reports
did
contain
They were
on
day-to-day
matters
relating
to
a dmin istra t i ve
and
operational control.
Naturally some of them were of great
importance,
Volume 1
-135-
Chapter
Previous Recommendations
7.U03
By
December
1981
had
commenced
investigations into the "bottom of the harbour" area.
I was
frustrated in my attempt to obtain information from the
I
Tax
Volume 1
-136-
Chapter
Previous Recommendations
7.004
my
recommendations.
The
terms
of
my
Commission
were
than
it
had
been.
Clearly
included
within
the
7.005
get access
had
recommended
that
all Royal
The actual
to tax documents.
Commissions
amendment
to
the
restricted access
to
Royal
11
the
Commissions
The amended
that
could not,
tax documents
Stewart Commission.
declaration 11
use"
to
was
would
made
section
could be
of
the
the
severely
made
It envisaged
get
under
to my Commission
same
access
appropriate
restricted
the
that
11
further
if
sub-section.
the communication
information obtained.
It
it
recommendation
investigation
was
and
which
nonetheless
greatly
was
to
valuable
assisted
lead,
in
in
due
Despite these
response
the
to my
continuing
course,
to
the
In Interim Report
No.
4,
which was
submitted
in Chapter 2
saw to
regarded as desirable.
Volume 1
-137-
Chapter
Previous Recommendations
1.
2.
3.
4.
That a
taxpayer be entitled to
access
to
information
he
has
conveyed to the Australian Taxation
Office.
This may be effected by the addition
of
taxpayers
to
the
list
of
authorised recipients in sub-section
4 of Section 16.
5.
Volume 1
That
information
supplied
by
a
taxlayer to the Australian Taxation
Off ce be available on subtoena
issued by ant Court in Austral a on
it being re evant to any civil or
criminal
proceeding
before
the
Court.
-138-
Chapter
Previous Recommendations
7.007
Volume 1
-139-
Chapter
Previous Recommendations
The
response
pass
by Government
legislation
to
creating
this
the
recommendation
Office
of
was
the
to
Special
(see Volume 2)
I recommended
the
responsibility
that there be a
throughout
Australia
fight.
I recommended that body have a
although preferrably slightly distanced
11
11
Commission 11
for
such
prosecuting
therefrom.
arm 11
The
set
out
in
my
reports
and,
in
particular,
STRA1'EGIES.
Although the legislation for the
Crimes Commission was not entirely consistent
suggestions,
nevertheless
National
with my
the
The
replacement
7.008
4
made
a
Interim
Report
No.
I
also
recommendation that a Royal Commissioner have power to issue
In
a search warrant.
Volume 1
-140-
Chapter
Previous Recommendations
(c)
Royal Commissioner.
Volume l
-141-
Chapter
Previous Recommendations
7 .00')
relating
to
In the same
compulsion of
report I made
witnesses.
The
recommendations
recommendations
Commissions
Act
has
Royal
Commissions
Amendment
Act
1982
amended
the
Volume 1
-142-
Chapter
Previous Recommendations
As
at
June
of
this
year
was
unsure
as
to
the
The
Government
is
examining
the
recommendations that are summarised in
volume
1.
Relevant
Commonwealth
Departments,
in consultation with the
states and the Northern Territory where
necessary, will complete their studies of
the report and make recommendations as to
action on it within three months.
If the
Government
decides
that
legislative
action will be necessary, it will provide
information as to the reasons drawing on
relevant
information
that
has
been
provided by the Royal Commission. 11
(Commonwealth Parliamentary Debates,
Senate, 12th October 1983, 1470)
7.012
Volume 1
-143-
Chapter
Previous Recommendations
wou
7.013
A reply was received to that letter on 2 July
1984 from the first assistant secretary, Justice Division.
This letter read as follows:"Your memorandum of 1 June 1984 sought
details of action taken by the Government
in
res~onse
to
the
recommendations
containe
in the reports of the Royal
Commission on the Activities of Federated
Ship Painters and Dockers Union.
In
broad
terms,
those
reports
Volume l
-144-
Chapter
Previous Recommendations
There
was
matter.
the
no
further
correspondence
in
respect
of
this
Fifth
Interim
Report
with,
where
appropriate,
my
comments.
Recommendations From Interim Report No. 5
7.014
Prosecutions
4.02
Volume l
-145-
Chapter
Previous Recommendations
National
4.03 I
need
make
no
specific
recommendations as to prosecutions to be
laid as, if I may sal so with respect,
these matters are
eing catered for
adequatell:" in the course of liaison with
the Spec~al Prosecutor and the other
bodies.
Indeed,
one
of
the
very
satisfying aspects of my Commission has
been the close association which has
develo ed with law enforcement
Volume 1
-146-
Chapter
Previous Recommendations
State
has is
involved.
This will, no doubt, depend
upon the level of cooperation that can be
negotiated with the States, probably on a
case-to-case basis.
However, I believe
it will be an important function of the
Director
to obtain,
with appropriate
assistance,
a
proper
degree
of
cooperation.
Pro sec ut ions are proceeding in Queens land where, following
committal proceedings,
four men will
face
trial.
I
understand that proceedings are on foot in Western Australia
in respect of various men identified as participating
generally in this scheme.
These proceedings have been
subject to various interlocutory matters which have delayed
the conclusion of committals.
I understand that these
prosecutions are being conducted by the Office of the
Director of Public Prosecutions which has taken them over
The only other matter I
from Special Prosecutor Redlich.
would draw attention to under this heading is to the civil
recovery aspect of the work of the Director of Public
Prosecutions.
recommendations
I
in
believe,
the Fourth
consistently
with
Interim report, that
my
the
to
initiate
his
criminal
prosecution.
by
Special
Prosecutors
Redlich
and
The
Act
The work
Gyles
amply
Volume 1
-147-
Chapter
Previous Recommendations
7.015
Exchange Controls
4.05
Under this heading I
as follows:-
recommend
Regulations
be
made
under
the
Banking
(Foreign
Exchange)
Regulations prescrlbi~ a form in
respect
of
applicat ons
to
the
Reserve
Bank
for
a~roval
of
agreements with non-res ents.
The
form should make provision for the
information
resentl
required b
at
n ormat on s ou
t e
be verified
in writing~ by
the
applicant and, in the case of a
company
by an officer personally
responsible for its truth. The form
should
contain
a
warning
that
provision of incorrect information
to the Bank is punishable by severe
penalty.
The
Regulations
should
provide that no overseas agreement
will be ap~roved unless a written
document em odyin~ the terms of that
a reement execute b the arties is
su mitte , pr~or to any ~a
t es
being incurred by the part~es. This
agreement,
of course,
should be
stated to be subject to the Reserve
Bank approval.
The applicant should state in his
form whether he and/ or the company
borrowing the money is related in
any way to the offshore entit~i He
shOuld specificall~ state
ether
shares in the offs ore com~any are
in an[ way beneficially hel on his
behal
in
a
trust
or
nominee
sifuaf~on.
Volume 1
-148-
Chapter
Previous Recommendations
requirements
were
significantly
affected
by
the
7.016
Tax Controls
4.06
I recommend as follows:-
Volume 1
-149-
Chapter
Previous Recommendations
Volume 1
Copies
of
the
material
submitted to NCSC and the
Commissioner of Taxation.
Copies. of the certificates
obtained
from
those
bodies.
-150-
Chapter
Previous Recommendations
The abovementioned
requirements hive been met.
II
II
Ill
provisions
Volume 1
-151-
Chapter
Previous Recommendations
1984
Volume 1
-152-
Chapter
Previous Recommendations
4.07
I recommend:-
which
(3.) The
names
of
shareholders
of
comtanies should at all times be
adv sed to the Corporate Affairs
Office.
This
list
should
be
maintained ut-to-date.
Any change
of sharehold ng should be notified
within 14 days.
Any later attempt
to notify a chan~e of shareholding
should
be
reJected
save
on
application
to
the
court.
The
register should show whether the
shares are held on a beneficial or
nominee basis.
In the event that
they are held on a nominee basis
Volume 1
-153-
Chapter
Previous Recommendations
then
the
name
of
beneficial
shareholder should also be advised
to the Corporate Affairs Office. I
not
so
advised
then
that
shareholdin~
should
not
be
recognised 1n law for any purpose.
Each officer
of
a
company
be
required by law to provide a written
statement containin the information
set out e ow.
s orm s ou
e
signed personally and witnessed. It
shOuld be witnessed by the rerson
responsible for lod~ement o
the
document at the o fice of the
Corporate Affairs Commission.
That
person should also be identified in
any
document
lodged.
1
the
document is lodged personallt by an
officer then it should be w tnessed
b~
an officer of the Corporate
A:fairs Commission at the time of
lodgement.
The
statement
should
contain, inter alia, the following
details:(a)
ill
---
(c)
ill
Volume 1
-154-
Chapter
Previous Recommendations
In
this
area
did
have
useful
discussions
with
the
I recommend:-
account
provide
be
required
by
law
to
a
written
statement
contain!~ the information set out
below.
his form should be si~ned
personally and witnessed by theank
officer opening the account.
The
statement
should
contain,
inter
alia, the following details:The full name currently
used by that person.
being
{b)
(c)
(d)
(e)
is or
and,
has
if
appropr~ate-
Volume 1
-155-
Chapter
Previous Recommendations
(I)
he
The
legislation
should
&rovide
ap!ropriate penalties for ma ing a
fa se
statement.
Banks
tend
to
require proof of incorporation of
companies before opening accounts.
The law should demand they obtain
such
lroof.
The
statement
of
persona
particulars
should
be
supplied by all pro~osed si~natories
for the account.
I
a ban er fails
to obtain the a ro riate statements
(3~) ~I_n~~c~o_nj~u~n_c_t_1_o_n~_w_i~t_h__~(2~)~,~~s_1_m_i_l~a~r
legislation
dealing
with
all
financial institutions be negotiated
as
atpropriate
with
State
Governmen s.
Every applicant to a bank or other
financial
institution seeking the
remission of funds overseas should
be identified on a record to be kett
of that transaction.
This shou d
then be forwarded to the Reserve
Bank
to
be
included
on
a
computerised record of all overseas
transactions.
(5.) Banking
records,
including
all
vouchers, should be retained by the
banks for a minimum period of seven
In the event ori inals of
customer, then copies
such
documents
including
endorsements
appearing thereon should be made and
liKewise retained.
Volume 1
-156-
Chapter
Previous Recommendations
7.019
Mining Permits
4.09
I recommend:-
Volume 1
-157-
Chapter
Previous Recommendations
7.020
Overseas Arrangements
4.10 I recommend:Consideration should be given
to treating "loans" made in the
tax
haven
countries
to
Australian residents as direct
income
unless
a
certificate
under Section 14C of the Tax
Administration Act has issued
in respect of that transaction.
Volume 1
-158-
Chapter
Pt:jevious Recommendations
~
and
(5.
Volume 1
-159-
Chapter
Previous Recommendations
-160-
Chapter
Pr~vious
I commend these views to Government.
Recommendations
7.021
a
Memorandum
Secretariat
and
prepared
The
1he
Commonwealth
to
the
Law
were
presentation
/by
Commonwealth
documents
for
paper
As~istance in Criminal
Perspective!.
In discussing the
entitled
Mutual
Commonwealth
matters
within
the
cokmonwealth
particular
This
approach
has
been
ad~pted
because
of
the
complex issues which can often arise/ in this area and the
fact that commercial crime increasingty has an international
dimension.
international
level
cooperation
of Australian
part of the
enhanced.
in
this
participation
programme
of
the
fi/eld.
i~
support
and
urge
that
the
of
this
Commonwealth Secretariat
be
I
I
7.022
Conclusions
Volume 1
-161-
Chapter
Previous Recommendations
have
spoken
Report.
had
presume the
publish those
affected
had
the
proposed
distribution
throughout
therein.
be
Australia,
or
on which Government
not
suggested.
It
of
to
the
have
was
distribution
just
of
did
should
wide
not
volumes
prosecution
That
I
to
that
subsequent
to
should
basis
volumes was
referred
there
access
not
have
offenders
effected
my
my
view
the
that
of
the
reports
Government departments,
recommend it be
done.
Volume 1
-162-
Chapter
CHAPTER 8 - REFERENCES
& RESULTS
PROSECUTIONS
study
our
and
their
"We
are
better
able
to
neighbours
than
ourselves,
11
actions than our own.
~s,
evidence admissible
particular offender.
which
any
attempt
to
erode
self-incrimination" is regarded
tre
the
concept
futility
of
of
''no
this
stance.
Evidence taken from offenders is not admissible.
The Royal Commission Act makes thif clear; so does the
Victorian Evidence Act; so does the I High Court.
Whatever
"evidence" is obtained of criminal: activity must still
remain the subject of critical prosedutorial examination to
ensure
it
is
sufficient
to
justifyl putting
trial.
As a matter of principle,
practice of referring matters to othe
investigative
prosecution.
Volume 1
process
leading
-163-
to
tlie
person
on
charge
and
Chapter
References
8. 002
I have referred to my recommendations for a
task force" to prosecute the perpetrators of the 11 bottom of
11
Commissions.
As
response
to
those
Mr
of
Volume 1
-164-
Chapter
References
(a)
the
Attorney-Generalr
Commonwealth, of a Sta e
Northern Territory;
(b)
the
National
Crimes
Commission
established by the Na ional Crimes
Commission Act 1982;
(c)
(d)
(e)
of
the
or of the
It provided the
cooperative work
8.004
in
approval
of
Government.
The
Attorney-General
made
the
Volume 1
-165-
Chapter
References
Volume 1
-166-
Chapter
References
by my
Social
fraud
and
the savings
generated.
8. 006
In the course of the preparation of my fifth
Interim Report, I indicated the savings to the community by
the attack on the tax industry.
Even this enquiry was
complicated and imprecise. There had been attacks by others
besides my Commission - for example, Government legislation
and
the McCabe-LaFranchi
investigation.
Moreover,
how
should one measure the financial savings resulting from the
suppression of such schemes.
The gain may be measured in
hundreds of millions of dollars per annum.
8.007
Commissioner
issued
as
Commission.
I
the
hesitation,
requested
to advise me of tax assessments
by
the
result
of
information
provided
a
He supplied those details.
They were minimum
With
some
of Taxation
figures, and did not include cases which were still under
investigation and for which no assessment had issued, or
Department
had
cases
where
the
already
commenced
investigations
and
the
information
provided
by
the
served
to
supplement
Commission
or
confirm
existing
material; the latter category would include a number of
bottom of the
harbour
schemes
considered by Special
Prosecutor, Roger Gyles QC.
Volume 1
167-
Chapter
References
assessed
(including
additional
tax)
was
8. 009
To place this figure in perspective, the cost
of the Commission was approximately $12,000,000.
8.010
The
gross
significantly during the
tax
recoveries
have
ensuing 15 months.
I
increased
note the
30
June
1984
Special
Volume 1
-168-
Chapter
References
After
the
initial
collation
approximately 150
of the persons were
identified as high priority targets.
That
number
has
since
increased
significantly.
In
the meantime
the
Australian Taxation Office estimate of
the number of companies stripped has
been increased by more than 50% - the
latest estimate is over 6, 000 compared
with the original estimate of something
over 4,000."
(Annual Report (1984) p.2)
Bottom of the Harbour
8.011
In his first annual report, for the period 22
September 1982 to 30 June 1983, Mr Gyles set out the sources
of his information.
It included the Australian Taxation
Office, Police Forces, the McCabe and LaFranchi Report,
Corporate Affairs Commissions, the National Companies and
Securities Commission and my Commission.
Of my Commission
he said:"The continuing enquiries of the Royal
Commissioner have spanned the activities
of several promoters and a great volume
of
documentary
material
and
other
information has been made available to
me.
My office has computer terminal
access to portion of the Commission data
base.
There is active liaison with the
Royal Commissioner and his staff."
(Annual Report [1983], p. 4)
8.012
Under the heading of Operational Progress, Mr
Gyles dealt with the institution of proceedings to the date
of his report:"Following advice from counsel retained
prior to my appointment, a prosecution
was initiated in Western Australia by a
police officer attached to my office
Volume 1
-169-
Chapter
References
report
Volume 1
-170-
Chapter
References
"The
Commissioner
of
Taxation
has
estimated that commission earned by the
promoters
and
their
associates
in
relation
to
current
year
profit
companies was in the vicinity of $150
million.
If
the
stripping
of
undistributed profits, trust stripping,
purported
"Curran"
and
"Westraders"
schemes, and various other tax avoidance
schemes were taken into account, the
figure would be very much higher.
The
revenue foregone runs into billions of
dollars.
Tax avoidance and evasion of this kind
in such volume
is
extraordinary
in
absolute terms but almost incredible in
relative terms having regard to the
small
Australian
economy.
It
has
recently been reported that the largest
United States revenue fraud case ever
brought is being heard
it involved
$US48
million.
The
two
committals
currently being heard involve revenue
loss of well over $200 million.
Volume 1
-171-
Chapter
References
In a schedule Mr Gyles
in
various
stages
of prosecution.
That
list
represents
prosecution of 32 major promotors and other functionaries
involved in "Bottom of the Harbour Schemes 11
Volume 1
-172-
Chapter
References
have provided
Volume 1
-173-
Chapter
References
Redlich Prosecutions
8.017
Volume 1
-174-
Chapter
References
Commissioner's
reports
were
only
designed to inform the Government as to
the
state
of
his
investigations,
(paragraphs 3.7 and 3.21 of 1982-83
Report). The Royal Commissioner had not
in the main made "findings" upon which
prosecutions could be based.
Prosecutions will flow from two of those
matters
and
civil
remedies
will
be
exercised in respect to another four
(paragraphs 3.22 of 1982-83 Report).
Bearing in mind the purposes for which
the first four Interim Reports were
provided to Government by the Royal
Commission, this result should not be
surprising.
As previously adumbrated (paragraph 3.23
of 1982-83 Report), the matters referred
to
me
by
the
Royal
Commission
subsequent to Interim Report No.4, will
all
lead
to
prosecution.
Since
my
1982-83 Report, the Royal Commissioner
has referred a further 7 matters to me,
bringing the total number of matters
referred to my office since Interim
Report No.4 to 18. All of these matters
are based on "hard facts" and have, or
should,
lead
to
the
institution of
prosecutions
and
in most
cases
the
taking of civil proceedings.
Over 600 charges have been laid covering
of
illegal
12
different
areas
activities.
Other charges are 1 ike ly to
have
been
be
laid.
Prosecutions
successfully completed in 6 of those
areas.
Summarfl of the more significant matters
from t e Costigan Royal Commission
The
following
is
a
summary of the
illegal activities referred to my office
by
the
Royal
Commission
which
has
required my detailed consideration.
I
have, for convenience, included those
operational matters adverted to in my
1982-83 Annual Report which have been
further developed since that time.
Volume 1
-175-
Chapter
References
(a)
tax
liabil ty operating companies
No tax returns lodged for many years
In my
a a1.rs o
many
un re s o
compan es,
deal in very large sums of money and pay
little or no income tax. A large income
tax assessment involving many millions
of dollars
was
levied against
this
person, and subsequently judgement was
obtained in the amount of the debt.
Execution in respect to that judgement
has been an extremely difficult and
complex
matter,
as
the
bankrupt's
affairs are inextricably bound up in the
affairs of many corporate entities which
he controlled, or which were controlled
on his behalf by persons who acted
solely at his direction.
The manner in
which this person was able to manipulate
the affairs of companies has been drawn
to
the
attention
of
the
Corporate
Affairs Office.
I must express grave concern at the ease
with which this person was able to abuse
the corporate privilege and ensure that
the benefits attaching to the concept of
limited liability were utilised at all
times.
If companies with minimum (i.e.
$2.) subscription requirements are to
remain acceptable, then the responsible
authorities must more carefully monitor
those who choose to abuse the privilege
of incorporation and defraud creditors
who will ultimately have little or no
recourse for recovery.
(b)
This
person,
associated
with
the
bankrupt referred to in the preceding
paragraph, has been assessed as owing
approximately
$A3.5m.
Judgement
had
been obtained for approximately $Al. 3m.
Judgement for the balance of that debt
Volume 1
-176-
Chapter
References
Volume 1
-177-
Chapter
References
Bankrupt
solicitor
conducting
tax
A
former
Queensland
solicitor
and
undischarged
bankrupt
has
been
investigated for his participation in a
substantial tax evasion sheme.
A large
number of charges under the Bankruptcy
Act 1966 have been laid arising from
activity
whilst
an
undischarged
bankrupt.
The charges are to be heard
in August.
(e)
Volume 1
-178-
Chapter
References
Contempt
of
and
refusal
to
quest1ons at the Royal Comm1ss1on
answer
Volume 1
-179-
Chapter
References
(h)
Volume 1
-180-
Chapter
References
have
have
the
Volume 1
-181-
Chapter
References
(k)
Volume 1
-182-
Chapter
References
Bankru t solicitor
activities.
ra~se
Volume 1
-183-
Chapter
References
Prosecution
and
recovery
(m)
ursuant
action
A
company
associated
with
persons
connected
with
criminal
activity
referred to me by the Costigan Royal
Commision went into liduidation, owing
approximately
$50,00
to
the
Commissioner of Taxation
for
unpaid
group tax instalment deductions.
At my
investigation
the
Deputy
Commission
(sic) of Taxation is considering action
against the directors and the public
officer, pursuant to s. 252 (L)(j) of the
Income Tax Assessment Act,
including
action for the recovery of the tax
instalment
deductions
made
from
employees' wages.
(n)
Assessment
in
Solicitors' fees
to be ra1sed
off-shore.
Assessment
Members
of
a
firm
of
solicitors
intimately
involved
in
a
fraudulent
exploration scheme arranged for fees to
be concealed in an off-shore trust. My
off1ce has co-ord1nated the act1vities
of the Tax Office and I anticipate the
raising of assessments against these
individuals.
(p)
Volume 1
-184-
Chapter
References
reason
of
their
investment
in
the
scheme, but also intended to make false
c1a~ms
for
remittance
of
interest
payments upon bogus loans obtained from
overseas.
Interest payments were made
to assignees from the purported lender.
The assignees were
the
trustees of
trusts
established
overseas
for
the
investors'
benefit.
My
office
has
passed
relevant
information
to
the
Australian
Taxation
Office
for
appropriate action.
The Director of
Public Prosecutions would exercise a
number of civil remedies in this area
were he given the ability to do so.
(q)
Volume 1
-185-
Chapter
References
(r)
Commercial
fraud
ssessments 1n excess o
Investigation of a taxpayer's affairs
revealed a liability to the Australian
Taxation Office in excess of ~Alm.
The
income was acquired by means o a number
of commercial frauds, including sending
companies to the bottom of the harbour,
the
acquisition
of
companies
and
subsequent
syphoning
off of company
funds, insider trading on various stock
exchanges, and the use of mining losses
to
convert
otherwise
profitable
companies
into
loss
companies.
Investigations
are
continuing
into
possible Corporate, Reserve Bank, Crimes
Act
and
Income
Tax Assessment
Act
offences.
(s)
Laundering
continuing.
of
income.
Investigation
Investigation
of
a
tax
avoidance
promoter. Assessments contemplated.
The affairs of a tax avoidance promoter
came to the attention of this office,
revealing that the promoter was involved
in a number of tax avoidance schemes
associated with at least 20 companies
promoting fraudulent schemes.
Numerous
overseas
transactions
involving
the
promoter and/or one of his associated
companies
are
currently
being
investigated.
Crimes
Act,
Banking
(Foreign
Exchange)
Re~ulations
and
Income Tax Assessment Ac
offences are
being
considered.
A
substantial
taxation assessment is likely to be
raised against the promoter in the near
future by the Commissioner of Taxation.
Volume 1
-186-
Chapter
References
(u)
Corporate
laundering.
commercial
frauds,
money
As
a
result
of
an
investigation
conducted by
the Australian
Federal
Police!
the affairs of a group of
compan~es
controlled
by
three
individuals have been referred to this
office.
The individuals concerned have
sought to defraud the Commonwealth of
its
revenue by means
of launderin
income,
and
the
lod~ement
o
dehberately
misleading
~ncome
tax
returns.
The
investigations
are
continuing into a possible Crimes Act,
Banking (Foreign Exchange) Regulations
and Income Tax Assessment Act offences.
(v)
Defrauding of clients
Prosecution under way.
by
solicitor.
Sales tax
scheme involving
sale of
merchandise at artifically low market
value.
Board
of
review proceed~ngs
current.
In my 1982-83 Annual Report I outlined
the
activities
or
a
group
of
car
retailers who were involved in a scheme
to evade sales tax.
The principals in
this
particular
scheme
took
out
insurance against any possible sales tax
1 iability, by employing "bottom of the
harbour"
techniques
to
strip
the
companies
concerned.
Following
the
assessment of sales tax with penal ties
by the Commission of Taxation,
the
principals lodged Notices of Objection
against each of the assessments and the
Commissioner is now awaiting the outcome
Volume 1
-187-
Chapter
References
of
some
"representative
cases",
involving similar schemes, to be heard
before the Taxation Board of Review.
In
the
meantime
a
task
force
is
continuing to collect and examine the
mass
of
evidence
relatin~
to
the
implementation of this part~cular type
of scheme with a view of instituting
proceedings for any offence which may
have been committed under Sales Tax Law)
Crimes Act 1914 and other Commonwealtn
legislation.
(x)
Social security
under way.
frauds.
Prosecutions
Volume 1
-188-
Chapter
References
separate
offences.
He
forged
and
uttered at least 33 income tax returns
claiming entitlement to the refund of
group tax deductions in respect to ~roup
certificates
which
were
eLther
unclaimed, or falsely obtained, relating
to work carried out by persons puporting
to be members of tbe Federated Ship
Painters
and
Dockers
Union.
As
a
consequence of this activity, the person
concerned
was
able
to
fraudulently
obtain the sum of $4,655.65 from the
Taxation
Office.
Charged
with
293
separate
offences,
the
person
was
sentenced
to
imprisonment
for
four
years, with a minimum of two and a half
years to be served. He was also ordered
to make reparation to the Commonwealth
of Australia
in
the
amounts
above
mentioned.
(z)
supplied
by
Volume 1
-189-
Chapter
References
8. 022
It was my policy to disseminate information
where it assisted in the detection of offenders.
This
resulted in numerous prosecutions.
Many have not been
finalized and so the defendants cannot be identified.
Some
of the bodies that have initiated legal proceedings or
commenced investigations are:-
Volume 1
-190-
Chapter
References
Volume 1
-191-
Chapter
References
the
months.
offences
awaiting trial
Commonwealth.
on
charges
of
conspiring
to
further
He is
defraud
the
Volume 1
-192-
Chapter
References
Outstanding Matters
8.029
Other substantial matters where investigations
are proceeding and/or charges laid but have not been
finalised include those summarised hereafter.
Australian Federal Police
8.030
Warrants
issued
with respect
to
forging
and
I have
Taxation
recently provided
Office, which is
Volume 1
-193-
Chapter
References
Numerous
matters
have
been
referred.
The
the
control
and
management
by
the
accountant of companies in Queensland
whilst a bankrupt;
(b)
Volume 1
-194-
Chapter
References
8.032
Information collected by my Commission has
been of assistance to Federal/State Police task forces.
Such a "task force" in Queensland charged ten people with
drug-related offences.
State Police Forces
8.033
Assistance was provided
to various
state
?Olice forces in addition to specific matters that are
referred for investigation and prosecution. In Queensland,
four men are awaiting trial on charges of conspiracy to
defraud the public with respect to an oil and gas
exploration venture. A major SP bookmaker was arrested and
is now awaiting trial in Queensland.
Three Queenslanders
were arrested and convicted on charges of selling dangerous
drugs
and have been imprisoned.
I
referred
to
the
Queensland
Police,
the
accountant
and
his
mentioned in the previous paragraphs.
I have
associates
recommended
Volume 1
-195-
Chapter
References
(b)
(c)
laying
charges
as
a
result
of
the
discharge
of
loans
amounting
to
$175,000.
The discharge of these loans
was made in order to release shares held
by the lenders as security, free from
further encumberance.
8.034
have
assisted
the
Victorian
Police
in
Volume 1
-196-
and
procuring
Chapter
the
References
Other Referrals
8. 035
In the course of my enquiries, I have come
into possession of information that referred to various
professional bodies, Registrars and employers.
more significant matters are:Attorney-General's
Wales):
Department
Some of the
(New South
Keith Knight:
As a result of certain false statements
contained
in
his
application
for
admission as a barrister, details of
which I reported to the Attorney-General,
this man's name was removed (by order of
the Supreme Court) from the barristers
roll.
In
August
1984,
a
fellow
practitioner
who
supported
Knight's
application
in
circumstances
which
suggested he may have been a party to a
deception was also reported but it was
determined that no action be taken to
charge him for mis-conduct.
A business man involved in illegal tax
schemes and massive
frauds
upon
the
revenue has also been referred regarding
his position as a Justice of the Peace.
Volume 1
-197-
Chapter
References
8.036
forces.
to their
has
by
been
both
taken
their
Volume 1
-198-
Chapter
References
bank accounts.
Disciplinary action has
been taken against at least three senior
officers.
State Savings Bank of Victoria
As a result of Commission enquiries a
bank manager was demoted, removed from
his branch and denied the right for
promotion of some two years.
He elected
to
resign
shortly
thereafter.
Some
$70-80,000 is still owed to the bank as a
result of his illegal dealings.
Supreme
Court action to recover $65,000 from a
notorious SP bookmaker has commenced.
A
bank accountant was
initially demoted
following illegal activities identified
by my enquiries.
Subsequently it was
discovered
he
had
given
himself
a
personal loan in a
false
name.
No
payments were made. He was dismissed and
charged with and convicted of theft by
deception.
Westpac Banking Corporation
As a result of my investigations three
bank managers from the CBA bank had
disciplinary action taken against them.
A Melbourne bank manager was dismissed
because of his illegal dealings with a
corporate criminal who has also been
charged with various offences including
kidnapping and assault.
A loss of some
hundreds of thousands of dollars was
caused
to
the
bank by his
illegal
actions. The Manager has been charged by
the Victorian Police with twelve charges
of false accounting. Two New South Wales
bank managers faced disciplinary action
as a result of my investigations.
One
was dismissed and the other demoted.
BARRISTERS BOARD OF WESTERN AUSTRALIA
Abraham Bercove
8.037
Following referral Bercove was investigated
and convicted of two counts of unprofessional conduct. The
Supreme Court subsequently ordered he be struck off the roll
of practitioners. His appeal was dismissed. He has sought
leave to appeal to the High Court.
Volume 1
-199-
Chapter
References
& O'Bryan
8.038
Bercove, was
disciplined.
Volume 1
subsequently
dismissed
-200-
and
two
others
were
Chapter
References
PROSECUTIONS ARISING
COMMISSION'S HEARINGS
8.040
By
FROM
reason
of
CONDUCT
conduct
DURING
COURSE
occurring
OF
THE
during
the
John Andrews
Convicted in September 1983,
by the
District Court (New South Wales) on three
charges of giving false testimony.
He
was placed on bond in the sum of $1,000
to be on good behaviour for three years
on two charges and on the third charge
was sentenced to two months imprisonment.
(ii)
Volume 1
-201-
Chapter
References
Victorian
Branch
of
the
Ships
8.043
On 2nd August 1984, Phillip John Scott,
Douglas Maxwell Sproule, Robert John Dix, Guido Spiller, Roy
Leslie Holman and Paul John Burns, Executives of the
Victorian Branch of the Union and Francis Kinsella, a former
Volume 1
-202-
Chapter
References
Volume 1
-203-
Chapter
Introduction
This chapter deals with the transition of the
work of my Commission to the National Crime Authority.
In
recent weeks there has been presented to the Parliament
copies of the correspondence between myself and Government
relating to this matter.
In the course of this chapter I
refer to that correspondence.
I need to do so in order to
put into context recommendations which dppear towards the
end of it.
Despite the frank and robust differences of
view expressed in this correspondence I have never had any
doubt that Government was
organised crime.
both
Prime
Ministers
for
which
wish
to
record
my
appreciation.
History
9.001
In
Report.
organisations in Australia. I gave an account of the extent
to which many investigations had progressed. I isolated and
objective,
qualifications
stating
the
of the persons
systems
needed,
the
and
Volume
-204-
Chapter
Transfer to NCA
9.002
Shortly prior to the delivery of the Fourth
Interim Report I had written to the then Prime Minister, the
Right Honourable Malcolm Fraser.
I had previously held
informal discussions with the Minister for Administrative
Services, the Honourable Kevin Newman, which had resulted in
a letter of 6 May 1982.
I had drawn attention to the
magnitude of the problem and the impossibility of my
Commission completing
its
task within
the
time
then
allowed. I had said:
"I am aware that
the Government is
considerinft the formation of a 11 Crime
Commission .
Indeed as I indicated to
you it was my intention as part of a
final report to discuss the alternative
methods available to Government to deal
on a permanent basis with the kinds of
problems uncovered by this Commission.
Such a report may well be pre-empted by
Government decision but I
would
not
expect
such a
decision
to
be made
quickly:
a
very
considerable
investigation
of
var~ous
alternatives
will no doubt have to be made before the
form of any such permanent structure is
determined.
In the meantime this Commission has a
job, and I believe a very important job
to do.
It will not be done quickly, but
will be done thoroughly.
It will not be
completed
when
I
return
my
letters
patent, for crime is an on-going activity
and the directions of my investigation
will have to be pursued by someone or
some body when I have finished. But when
I am to finish depends on the view
Government takes as to its future role in
and
attitude
towards
the
attack
on
organised crime.
My feeling at the moment
Commission
requires
a
extension of time ... "
is
that this
significant
Volume
-205-
Chapter
Transfer to NCA
9.003
9.004
even
following
the
change
of
Government,
the
June
1982
extension
was
by October
not
of
granted
Commission expired.
that
until
year,
a
and
few
the
days
eventual
before
my
9.005
was intended the new Commission would take over the basic
structure, premises and equipment of my Commission.
If that
was to be the case then, in budgeting, it was sensible to
provide for the expansion of the staff, equipment and
techniques
them.
in anticipation of
On 4
October
1982
the
wrote
the
Prime
Minister
The
Commission
now
guidance as to its future
this is an urgent need.
Volume
-206-
needs
some
planning and
Chapter
Transfer to NCA
t1y
Volume
-207-
Chapter
Transfer to NCA
budget
was
prepared
which
envisaged
an
did
so
expanded
the
was
in Canberra,
on
its
expertise
Volume
in
-208-
Chapter
Transfer to NCA
"As
the
Acting
Attorney-General
has
discussed with you the Commonwealth for
its part has agreed
to extend your
Commission
to
1
July
1983
on
the
assumption
that
the
National
Crimes
Commission will be available to commence
operations early in 1983. The Government
recognises the need to allow for an
orderly
transition
between
your
Commission and the new body.
It would,
if necessary,
consider extending your
Commission beyond 1 July 1983 to ensure
that this occurs.
You have indicated an urgent need for
some guidance for the Commission's future
planning.
While the Commonwealth does
not seek to direct the Commission as to
how it should carry out its functions, it
sees certain areas of priority for action
by the Commission in the remainder of its
term ...
I am asking the Acting Attorney-General
to speak further with you and with Mr.
Cain,
in
relation
to
the
future
activities of the Royal Commission and
the transition to the National Crime
Commission.
I note that you have prepared a fresh
budget for the remainder of this year
env~saging
the expansion of staff and
equipment and new premises. The Minister
for
Administrative
Services
will
be
considering these estimates and the best
way of meeting your needs during this
period.
This needs to be in the context
that the National Crime Commission may be
located
in
Canberra
rather
than
in
Melbourne.''
(Letter Prime Minister to the
Commissioner 25 October 1982)
9.008
Volume
-209-
Chapter
Transfer to NCA
24 hours I was
Attorney-General
on
the
basis
advised
that I
set
out
by the
should
in
that
letter,
As a result a budget has been
prepared and delivered.
Inspection of
new premises has been undertaken and
recommendations made and a new staff
proposal has been prepared.
I am now advised that the location of the
National Crime Commission may be Canberra.
Such a proposition completely destroys
the basis on which I wrote my letter of 4
October and on which I have taken the
steps outlined earlier in this letter.
Let me explain this statement.
1.
Volume
-210-
Chapter
Transfer to NCA
Volume
2.
3.
4.
-211-
Chapter
Transfer to NCA
Volume
-212-
Chapter
Transfer to NCA
9.009
The Government had announced the intention to
establish a Crime Commission.
A Bill was introduced into
the Federal Parliament on 21 October 1982.
In the second
reading speech the Acting Attorney-General drew attention to
the part of my Fourth Interim Report in which I
described
In
the
context
of
the
correspondence
then
-213-
Chapter
Transfer to NCA
Volume
-214-
Chapter
Transfer to NCA
9.012
The
Bill
was
passed
M.P.,
seeking
advice
the
as
but
I
before
immediately wrote to
Honourable
to
the
proclamation
R.J.
future
Hawke,
of
A.C.,
the
Crime
Commission.
I drew attention to the emasculation of the
powers of the Crime Commission.
I pointed out that if the
new Government proceeded with the existing Act,
and
if
it
a
and
for
the
transfer
to
be
effective.
My
In it I said:
Volume
-215-
Chapter
Transfer to NCA
9.013
At
this
Commission of Inquiry
time
the
Report
of
the
Royal
submitted.
pressed the
I was
Attorney-General,
Senator Evans.
1983
from
me
to
In a
letter of
reported
25 March,
upon
those
the
Volume
-216-
Chapter
Transfer to NCA
Volume
-217-
Chapter
Transfer to NCA
assured
of
a
Federal
Judicial
appointment.
This
is
an
outrageous
suggestion.
Quite apart from the fact
that I do not presently have judicial
ambitions having rejected offers in the
past,
it
is
quite wrong
to
regard
appointments to the Bench as a convenient
method of solving other problems.
One
such unfortunate appointment has already
been made.
But more significantly any
person holding the position of Chairman
of
a
Crimes
Commission must
do
so
completely independent of any hope or
promise which may be
based
on his
performance in his job.
It was put to me on the basis that I
would
have
to
accept
a
much
lower
salary.
Even if I
was offered the
position of Crime Commissioner of a
properly
set
up
Commission
on
a
barrister's fee level I would have to
consider seriously whether I would wish
to accept the position.
The level of
salary is not a major factor.
I would
not be prepared to lend my name to the
present Commission because I am convinced
it cannot do the job it is supposed to
do."
(Letter Commissioner to Prime Minister
25 March 1983)
9.014
At this time my senior assisting counsel had
been invited to deliver papers at the ANZAAS Conference in
Perth.
I urged him to take the opportunity to do so
believing that the new Government as much as the old desired
public debate on the proper response to the problem of
organised crime.
The papers were delivered to the Prime
Minister before they were published and every indication was
given that publication of such matters was
desired.
Officers of the Department of the Special Minister of State
attended their delivery and there was much public debate
stimulated by them.
Amongst other things those papers
debated the proper role for a Crime Commission, and the
powers that were required for it to do its job effectively.
A copy of those papers is to be found in Appendix 1-G. This
led to acceptance that there should be more intensive
consideration given to the nature of the Crime Commission.
Volume
-218-
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At
this
time
delivered
my
Fifth
Interim
Volume
-219-
Chapter
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proceed
until
the
new Crime
With
these
clear
declarations
by
the
Government, planning and operations within my Commission
were conducted on the basis that they would be taken over by
the new Authority.
Thus money was
expended on the
development
of computer
systems,
and
operations
were
undertaken,
which
otherwise
would
not
have
been.
For
By
August
1983
the
Government
announced
it
Volume
-220-
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Volume
-221-
Chapter
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Scenario 1
The Government decides to set up a
National
Crimes
Commission
based
in
Melbourne
with
appropriate
powers
including access to tax records.
In this
case the new body would take over current
investigations, staff and premises.
A
period of training for new persons coming
in would be needed. This would require a
minimum of two months, preferably three.
During the last 6-8 weeks I would be
primarly concerned with the preparation
of my final report.
The handover though
difficult could be done efficiently.
Scenario 2
The Government decides
to set up a
National Intelligence Agency along the
lines of the Victorian proposal. Such an
agency would not have the powers to
continue my work. My task would then be
to
finalise
my
Commission
in
the
traditional
manner,
return
documents,
cease the calling of evidence and prepare
a final report. A very real question of
principle would arise as to what should
be done about documents acquired by me
pursuant to Royal Commission powers which
could not be acquired by the new body
without these powers; also what would be
done
about
the
database
I
have
developed.
Since the drive behind the
Victorian proposal reflects a reluctance
to interfere with traditional liberties I
would have to take into account these
matters in deciding my attitude.
The last three months of my Commission
would be devoted to these tasks.
What
would happen to my staff depends on the
nature and location of the new body.
If
it is not to be in Melbourne then any
useful relationship between it and my
Commission will be enormously difficult.
I mention these matters so that it can be
appreciated that my ability to plan the
last three months of my Commission is
entirely
dependent
upon
Government
decision as to the form of the new body.
Volume
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"Following
the
Crime
Commission
conference in July the Commonwealth and
the States have been discussing the form
of a possible National Crime Authority.
A proposal developed in these disussions
is now under consideration by Governments.
My Government's intention, subject to
Caucus approval on 1 November is to
introduce as soon as possible in November
legislation
for
a
National
Crime
Authority with the aim of final passage
in the present Budget Sittings.
The
Authority
will
have
as
its
primary
function the conduct of investigations
into
suspected
criminal
activities
pursuant
to
references
given
by
Governments with the intention amongst
other objectives of assembling evidence
for the purpose of prosecutions and will
have
appropriate
coercive
powers
as
necessary to pursue such references.
The Government recognises that while it
would prefer the new Authority to be
established and in a position to take
over from your Commission on 1 January
1984, time will probably not permit the
formal establishment of the Authority
until 1 March and its full operational
effectiveness
until
some
little
time
after that. Bearing in mind the need for
an "overlap" transitional period during
which your Commission can impart its
expertise and transfer its staff and
material to the new body, the Government
accordingly has in mind, subject to your
agreement
and
to
further
review
if
circumstances
make
this
appropriate,
extending your Commission to 30 April
1984.
Volume
-224-
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Volume
-226-
Chapter
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limited
in
the
matters
it
may
investigate, then I should not hand over
material gathered which would lie outside
its authority.
A great deal of the
material I hold is in this category.
It
will be necessary to consider each item
and make a rational a decision as I can;
this
will
probably
entail
allowing
submissions to be made by the parties who
have supplied such material.
My earlier
estimates
of
the
time
required
for
handover made no allowance for these
procedures. I estimate that this process
may take some two months after the new
Commission has had some matters referred
to it (so that material relevant to its
investigations may be determined).
My
current
investigations
cover
all
States and range over many areas of
criminal activity.
Ideally I should be
able to act on the basis that all these
matters will be taken over by the new
Commission.
Perhaps
there
will
be
objections from some States as to the
referral of some of these matters. They
will need to know the full extent of my
investigations before they can decide
this
matter.
These
questions
are
unlikely to be decided quickly;
but I
will have to make my decisions on the
basis of what has been referred at the
beginning of the handover period.
The
schedule you outline
in your
letter
suggests
the whole of the period
1
January to 30 April 1984 be concerned
with handover and training.
If I assume
that on 1 January there is a referral of
matters to be investigated by the new
body,
this
will
still
be
quite
insufficient
time
to
attend
to
the
matters I have described above, let alone
address the very considerable task of
training the new officers. January is a
holiday period. It may be that the newly
appointed officers will take up their
positions and attend from that day on but
I
would
think
it
unlikely.
It
is
certainly not something I would ask of my
staff who have worked hard and long
during this year.
At best matters would
get under way in the third week of
January. At the other end of your period
Volume
-227-
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falls Easter.
The apparent four month
period thus shrinks to three.
It is not
adequate to attend to the matters you
suggest.
So far as the fina 1 report is concerned
it is not possible to attend to matters
of the complexity I have described above,
and at the same time to write a final
report.
Previously I had assumed that
the new body would take possession of all
of my material.
I had also assumed it
would follow through my many uncompleted
investigations.
It seems that it will do
neither of these things.
In those circumstances I must write a
very different final report to that which
I comtemplated in my earlier discussions
with you.
It must be written prior to
the return of the documentary material
for it is on that material that it will
be
based.
It
will
be,
in
these
circumstances, a massive task for I must
now
write
a
report
on
incomplete
investigations,
whereas
previously
I
expected to say no more than that those
investigations were in train and would be
completed by the new Commission. Writing
a report of a completed investigation is
difficult enough (witness Hamidan).
To
write it of incomplete investigations is
very much more difficult.
That
task
cannot be done whilst also being engaged
in
training
a
new
Commission
and
determining the fate of the mass of
documentary material I have collected.
Moreover there is the problem of the
I? resent investigations.
When I saw you
~n
April this year you indicated your
wish, with which I concurred, that the
Commission should concentrate on Painter
and
Docker
activity
with
particular
reference to drugs. That is the course I
have followed.
It was necessary for me
to complete some current matters.
That
has taken some time.
In the case of
Hamidan it required a very large report.
In other cases it has required the
briefing of other agencies to take on the
partly completed investigations in order
to finish them.
Volume
-228-
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The
drug
investigations
are
now
progressing very well.
However as you
will understand the techniques used by
the Commission which have to date been
very effective involve a wide-ranging
enquiry circumscribing the main target
area so as to understand it completely.
As the investigations proceed increasing
obstructions
are
being
and
will
be
encountered.
This is to be expected.
What cannot be expected is that they will
be quickly overcome.
Even with the
powers of a Royal Commission it is still
very time consuming.
The new Commission cannot usefully be
given these investigations for it is to
be denied the powers needed to do them.
I cannot complete them within the time
you allow.
On the other hand at this
moment they are at a critical point and
it would be contrary to the public
interest to stop.
That is likely to
remain the case for the next few months.
It is only those who have experienced
investigations such as these who fully
appreciate the time they take and the
necessity for persistence. Those who are
the targets have much to lose and a great
deal
of
money
to
employ
in
their
defence.
I find it difficult to believe
that you would wish this fight to be
abandoned at this point; but if that is
the decision of the Government, so be it.
For these reasons I expressed the opinion
that the time-table you give in your
letter
is
not
only
unworkable
but
contrary to the public interest.
If I
act on the reporting date you suggest
then
I
should
immediately
stop
all
investigations and start writing.
In
that manner I may get the report in by
the end of February, though it will
necessarily be far from complete and
therefore not satisfactory.
It is not
likely such a report will serve many
useful purposes in the Government of our
country.
In that period I could not
allow any time for training the new
Commission or determining what should be
handed over.
Volume
-229-
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9.021
Volume
-230-
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departmental
Various ways
officers
in Melbourne
and means of overcoming
raised in
discussed.
discussions
took
9.022
with
senior
afterwards.
shortly
place
the
problems
had
accordance with law, and that they did not flout any
principle of law.
I advised that the simplest and most
efficient means would be by a direction by Parliament
reflected in the National Crime Authority Bill that all of
my database be transferred to the National Crime Authority.
Such a statutory direction would remove from me any
discretion in the matter and would make the transfer of the
material immediately achievable.
By this time new legislation establishing the
9.023
National Crime Authority had been presented to Parliament.
It was again announced that it was intended it should take
over my offices, staff, procedures and database.
On 13
October 1983 I delivered the Sir John Harry Memorial Lecture
in which I referred to the system required for a successful
Crime Authority. In his second reading speech introducing
Volume
-231-
Chapter
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the
National
Crime
Authority
Bill
to
the
Senate
on
10
Volume
-232-
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Volume
-233-
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Volume
-234-
Chapter
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the
enormous
n
that
have
el that is now
e difficulties
, the dangers
on a de facto
through
the
1983,
(Senate,
Hansard,
2733-2734)
On 17 November
1983
he
Senate
referred
the
Attorneys-General
on
12
November
1983.
Volume
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Volume
-236-
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Prime
by
responded
9.026
The
Victorian
Gover ment
accepting my suggestion and extending y term to the end of
1984. The Federal Government did not. By a letter dated 16
December 1983 the Prime Minister wrote:
"As you will be well aware
ur position
remains
one
of
concern
about
the
appropriateness
of
a
pu lie
Royal
Commission Inquiry so far as the ongoing
investigation
of
organised
crime
is
concerned;
we remain commi ted to the
establishment as soon as po sible of a
National Crime Authority to ake over on
a
continuing
basis
those
of
your
investigations
which bear
upon
organised
crime
more
generally
than
just
in
connection
with
the
Federated
Ship
Painters and Dockers Union.
Although the Senate Committee of Inquiry
has injected a degree of uncertainty we
still anticipate being able to legislate
to create the new Authority with a
structure
and
powers
not
markedly
different from those proposed in the
National Crime Authority Bill 1983 by
June next.
Certainly we would wish you
to plan your own activities on the
assumption that such a body will be in
existence by the end of June.
Volume
-237-
Chapter
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Concluding
those
investigations
necessary to produce a report upon
and recommendations relating to the
Federated Ship Painters and Dockers
Union which report we would like to
receive on or before 30 April, 1984;
and
(b)
16 December 1983)
Volume
-238-
Chapter
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9.027
letter,
-239-
Chapter
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Volume
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Chapter
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Volume
-241-
Chapter
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Volume
-242-
Chapter
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produce
a
report
without
fresh
recommendations
for
none
of
the
investigations has reached a point where
the need for changes in law or policy has
become
apparent.
My
recommendations
would simply traverse the same ground as
that which would be found in my previous
reports namely that Australia requires a
Crimes Authority properly empowered to
continue this work on a permanent basis.
Nor is it possible for me to suggest that
30 June would be a more satisfactory
date.
If I assume that the new Crimes
Authority is established by June 1984 and
that appointments as Commissioners and
Counsel are made by early June 1984, then
the balance of June will be spent in the
briefing of those appointees in respect
of current operations (assuming that the
new Authority is able to take on those
investigations
an
assumption which
cannot
be
made
under
the
present
provisions of the Bill). More time would
be required to train people at that level
in our operational techniques for there
are very few people available who have
any experience remotely approaching that
necessary to continue those techniques.
June would be a very busy month.
In fact
neither of those objectives would be
achieved in it.
Much less would I have
time to write a report. Nor would I have
time to attend to the necessary work to
return documents and close the Commission.
As I have explained previously it takes a
considerable time to brief and train
replacements for myself and my senior
counsel. Once that training is completed
and the new Commissioners and Counsel
have taken control, then I will be in a
position and will have the time to write
a report likely to be of some use to the
Government.
Until that time is reached
it is beyond my capability (or for that
matter the capability of any other man).
In
these
circumstances
I
reluctantly
advise that I am quite unable to provide
your Government with a report by the end
of
April.
For
as
long
as
I
am
Commissioner the investigations, being of
such great
importance
to
the public
health, will continue without abatement.
Hopefully before my Commission expires
Volume
-243-
Chapter
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Volume
-244-
Chapte~r
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Volume
-245-
Chapter
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We
look
forward
to
concluding
the
immensely
fruitful
work
of
your
Commission on the
basis of amicable
cooperation."
(Letter Prime Minister to Commissioner
27 February, 1984)
9.030
Volume
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Volume
1.
2.
3.
-247-
Chapter
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9.031
shortly
Volume
-248-
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On 21 June
1984 I
received a
further
letter
Volume
-249-
Chapter
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Volume
-250-
Chapter
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9.033
As
have
reported
elsewhere,
had
been
to do so
Volume
-251-
Chapter
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9.035
By 22 June 1984, on which day its first
meeting occurred, there had been established the National
Crime Authority Steering Committee, comprising the Chairman,
myself, the Secretart of the Department of the Special
Minister of State, Mr A.D. McGaurr and Mr Menzi.es.
The
formation of this committee had been forecast in a letter to
me of 13 June 1984 from Mr McGaurr. At that time it was not
proposed I should be on the Committee. There was also to be
established a task force comprising representatives of my
Commission as well as from many other departments and from
the
Stewart
Royal
Commission.
Nevertheless
it
was
recognised that one of the major objectives of the Authority
was to maintain intact the resources and expertise of my
Commission and to ensure the continuation of its work.
The
shortness of time was also appreciated by Mr. McGaurr:
11
desirable that I
joined the
steering committee.
if the
not be
This was
Volume
-252-
Chapter
Transfer to NCA
Mr Costigan pointed
decisions
of
the
and
make
clear
programme
he
concerned
over
impact
had
in
the
in
the
urgent
need
necessary appointments
on
mind.
need
line
together
Government's
request,
and
his
writing
to
the
He
to
take
because
handover/briefing
was
particularly
available to him. 11
(Minute Steering Committee 22 June 1984)
9.036
it considered a
proposed
Volume
-253-
Chapter
Transfer to NCA
being harmed
by
the mere
issue
of summonses.
YE~t
not
to
The purpose
reference
without
identifying
by
name
the
people
took
place
as
to
how
the
reference
could
be
the
specific".
operations
of my
Commission
had
been
"person
considerable
effort
on
the
part
of
the
It
my
assisting
into that
Volume
-254-
Not
Chapter
Transfer to NCA
the
end,
by
date
40
close
finished.
Some
described.
Subsequently and
to
relevant
not
13
July,
criminal
the
task
activities
surprisingly,
was
were
further
the
material
to
the
National
Crime
Authority.
it relates
The
Accordingly I
NCA was
could
not
it did not
Commission.
Volume
-255-
Chapter
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9.041
18 July 1984)
9.042
Volume
-256-
Chapter
Transfer to NCA
Authority
forming
the
relevant
suspicion.
My
senior
assisting counsel later drew the attention of one of the
members of the Authority to the failure of the resolution to
record
that
the
relevant
suspicion had been
formed.
Following that, by a letter dated 23 July 1984 signed by the
Chairman of the Authority, I was informed of a subsequent
motion at another meeting of the Authority which was in the
following terms:
11
0n the motion of the Chairman the
Authority resolved that arising out of
the material mentioned in paragraph 2 of
the Minutes of the Inaugural Meeting of
the Authority, in addition to the matter
mentioned in paragraphs 3 and 4 of the
said Minutes, the Authority, pursuant to
Section 4(2) of the Act suspects that
offences which are not relevant offences
as defined in Section 4(1),
may be
directly or indirectly connected with or
may be part of a course of activity
involving the commission of a relevant
offence so defined. 11
Volume
-257-
Chapter
Transfer to NCA
Commissioners to access
files of the Commission.
the
database
and
to
inspect
the
9.044
It will be observed that this was not achieved
by 13 July 1984 as the Prime Minister had requested.
However it was achieved in the shortest possible time,
having regard to the strictures of law and the extent of the
work involved.
9.045
At this
point
it is appropriate I
deal with
the
the
I do not
National Times by an unauthorised disclosure.
believe it was released from the Commission premises, nor by
any of the Commission staff. A police investigation has yet
to establish how the disclosure occurred.
9.046
As I have recorded earlier, the task imposed
by the Prime Minister was to facilitate the transfer of the
current investigations to the new Authority.
Up until the
passage of the National Crime Authority Act, I had expected
to effect the transition with a minimum of fuss.
I had
asked for a statutory direction that my data base be
transferred, and for substantial time for oral briefings of
the new staff.
Had it been done in this fashion, the
memoranda of relevant criminal activities would not have
been prepared.
Indeed, little more would have been in
writing than the list of 29 matters forwarded directly to
the Chairman of the Authority upon his appointment.
Even
Volume
-258-
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Volume
-259-
The definition
Chapter
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9.050
probability of this
where distribution
is
so
much wider.
9.051
The
problem
is
not
merely
If a reference is granted,
distribution.
mandatory requirement imposed by sections
that
of
there
wide
is
l3(2)(a)
and
Volume
-260-
Chapter
Transfer to NCA
11
describe the
allegations 11
circumstances or
and
inconclusive
There
significance
to
be
will
who
those
attach
may
point
to
criminal
activity.
Thus
the
requirement
after
and
assertion,
allow,
the
perhaps
by
innuendo,
identification
of
perhaps
those
by
involved
blatant
in
the
result
of
investigations
had
conducted).
Their
Volume
-261-
Chapter
Transfe,r to NCA
9.054
I recommend that the strategy of the National
Crime Authority Act be changed so as to do away with the
requirement for a reference, and so remove any requirement
that at the commencement of an investigation there be
recorded the circumstances implying offences, or allegations
of offences.
Other techniques
Authority are required.
for
the
control
of
the
9.055
The transmission of the relevant criminal
activities in documentary form was not the only problem in
the transition.
Another was the lack of time to conduct
proper briefings. Much has already been debated on this in
the national Parliament, and the correspondence between me
and others concerning it has been published.
It is
unnecessary to add to what I said in that correspondence. I
merely record that operational briefings did not take place,
although in the last days of the Commission, whilst this
report was being printed, copied and bound, my senior
instructing counsel was able to give a little time to this
matter.
9.056
As I look back on the last four months of my
Commission, it is plain that it was never feas:ible to
commence a new Authority as mine ended, and expect it to
continue the operations without there being a substantial
hiatus.
The methods of operations, the systems, .and the
philosophy of the work done by my Commission was far too
removed from the experience of those newly appointed for it
to have been
reasonable
rapid
Volume
-262-
Chapte~r
Transfer to NCA
9.057
This had been demonstrLed earlier, when Mr
Robert Redlich was appointed as Spefial Prosecutor at my
instigation for the purpose of prosecr,ting and taking civil
actions as matters were investigated by my Commission.
It
I
was some months before he gained a fu~l appreciation of the
techniques being employed and the obfectives being sought.
Those months were marked with misunderstandings on both his
!
and my parts;
but within twelve .ionths a much better
understanding, and cooperation, was acrieved.
9.058
Mr Redlich, and Mr Grles Q.C., were then
replaced
by Mr
Temby
Q.C.,
as
Director
of
Public
Prosecutions.
Once again the same: problem arose.
He,
together with a number of other
any knowledge of the objectives
sign~ficant
bein~
people, lacking
sought and the means
on which the
cite a later
Volume
-263-
Chapter
Transfer to NCA
9.060
hope
the
and
case.
I have
techniques.
I
the
continued
product
in
of
the
that
future.
In themselves
philosophy and
those
they represent
techniques.
For
Volume
-264-
Chapter
Introduction
10.001
10.002
The
have
consolidated
in
this
chapter
the
recommendations appearing in the sever 1 volumes of my report.
recommendations
su
arised
in
this
chapter
an4 led
notl have
to a
number of
occurred had the
10.003
concerned,
confidential
volumes
are
Insofar
as
the
my recommendation that they be kept confidential
does not mean that I counsel their concealment from those whose
advice or action is required to imp~ement the recommendations
within them.
The relevant confidential volume should be made
available to such people.
10.004
For
convenience
have
summarised
the
Volume 1
-265-
Chapter 10
Recommenda.t ions
recommend
that
the
provisions
of
the
Royal
recommend
that
1902-1984 be amended
so as
to
the
not
Royal
Commissions
Act
perjury
where
joint
Commission
is
I
granted
attachment
repealed,
recommend
by
to
11
the requirement of a
Inter-Governmental
summons
issued
by
reference
Committee,
the
and
its
Authority,
be
upon or requiring
or
the
every
that
11
the compilation of
circumstances
implying 11
is commencing.
Volume 2 - INVESTIGATORY TECHNIQUES
Systems
10.008
report be
In particular,
other
systems
Volume 1
the Victorian
law enforcement
being
converted
to
-266-
in
fourth
Victoria.
generation
Upon
those
language,
Chapter 10
Recommendations
them freely
agencies.
10.009
recommend
material
derived
from
that
taxation
data
the
recor s)
base
be made
(excluding
available
to
appropriate
recommend
guidelines
that
there
be
issued
to
be
to
study
all
made
law
enforcement,
determined,
they
and
be
that
issued
such
as
the
enforcement
for proactive
guidelines
by
the
of
being
Ministers
that
recommend
Director
of
Public
recommend
that
there
to
the
same
effect
States of America in
Disclosing Act of 1959,
as
by
agreement
have
in
the
and that
Re
the
United
and
the commission of
unions not be the
period
Volume l
enacted
be
of
five
years
following
-267-
for
an
indictable
Chapter 10
Recommendat:ions
offence.
Such
laws
should
imitate
the
existing
provisions
10.014
10.015
to
act
as
an
intelligence
gathering
and
dissemination agency.
Detailed recommendations as to the
functions and operations of this Authority are to be found in
Chapter 5 of Volume 3.
Volume 4 - SP BOOKMAKING
10.016
Act
1966
be
amended
so
as
to
include
an
off1:!nce
of
10.017
I
recommend
that
the
penalty
for
illegal
bookmaking be increased so as to provide a fine of $25,000 on a
first offence;
$100,000 maximum and $25,000 minimum on a
second conviction; and $250,000 maximum and $50,000 minimum or
three years' imprisonment on a third or subsequent conviction.
I recommend that the Lotteries Gaming and Betting
10.018
Act 1966 (Vie) be amended so as to make it an offence to give a
false name and address when questioned by the police in respect
of illegal gambling.
10.019
I recommend that the Lotteries Gaming and Betting
Act 1966 (Vie) be amended so as to render it an offence to
Volume 1
-268-
Chapter 10
Recommendations
place a bet with illegal bookmakers, and that the penalty for
doing so be a fine of $25,000.
10.020
turnover
tax
from
those convicted of
illegal bookmaking,
and
that such office work in close associ tion with the members of
the Victorian Police
charged
with
e forcement
of
the
gaming
laws.
I further recommend that the A~stralian Taxation Office
allocate investigators to assist with this office, its function
being to recover income tax.
10.022
recommend
that
be a reference by
Governments
to
the
Nation l
Crime
Authority
investigate illegal bookmaking
ut Australia.
State
all
to
10.023
I
recommend
that
in
addition
to
the
investigations of the National Crime Authority the Australian
Bureau of Criminal Intelligence coo dinate the gathering of
intelligence throughout Australia on he operations of illegal
bookmaking and race fixing.
10.024
I recommend that Telecpm grant access
enforcement agencies to the SCRP machi4e facility.
to
law
recommend
the
estab ishment
of
Taxation
Volume 1
-269-
Chapter 10
Recommendations
10.026
recommend
the
establishment
of
Taxation
Investigation Officer.
Details as to his functions and powers
are to be found in Volume 5.
10.027
be
granted
reference
to
conduct
its
own
investigations.
In the event of my recommendation as to a
Taxation Investigation Tribunal being accepted, I recommend
that Bull and his associates be investigated by that tribunal.
10.028
I recommend that the activities of the solicitor
Robert Cartwright (of the firm Power and Cartwright, Noosa,
Queensland) be referred to the Queensland Law Society for
appropriate action.
Volume 6 - LOCKYER
(name suppressed as
person
trial)
is
awaiting
10.029
I
recommend
further
investigations
and
the
initiation of criminal proceedings as set out in sub-paragraphs
1-3 of paragraph 7.005 of Part 1;
and sub-paragraphs 1-3 of
paragraph 13.011 of Part 2.
10.030
I recommend that the office of Justice of the
Peace held by the person the subject of Volume 6B in New South
Wales be terminated.
10.031
I recommend that the activities and affairs of
the persons the subject of Volume 6B be closely monitored by
all relevant law enforcement agencies, and in particular the
National Crime Authority, the Australian Taxation Office,. State
and
Federal
Australian
enforcement
Volume 1
Police
forces,
Corporate
Affairs
Customs
Service,
Bankruptcy
agencies
in
the
-270-
Offices,
Offices
United
the
and
law
States.
Chapter 10
Recommendations
Crimes
Act
of
the
10 .030
I
recommend
that
the
Commonwealth and the State of Victoria be amended to render it
an offence to fail to report knowl dge or information of
i
criminal offences where the offence is one punishable by
1
10.031
I recommend that the structure, organisation and
methods of Bankruptcy and Corporate Affairs offices be reviewed
to provide proper equipment and fa ilities (including the
1
development
of
a
computer
retrieval/analysis system) for
based
information
storage/
satis actorily enforcing the
10.032
(a)
to
provide
specifically
that
the
Official
Trustee
may investigate
trusts,
companies,
businesses,
partnerships
and
oth~r
entities
suspected
of
being
financially
associated with the Banlirupt or any
member of his family;
(b)
(c)
(d)
to
rectify
the
appar~nt
anomaly
appearing in Section 269( ) by making
it an offence to carry o business in
thebankrupt's
own
na e
without
disclosing to the person ith whom he
deals that he is an undischarp,ed
bankrupt.
I recommend t e words 'in
his own or" be added af er the word
"business" first appearin
to render it an offence to fail to
disclose
to
the
Re istrar
in
Bankruptcy or the Offidial Trustee
all banks, building societies, credit
unions, credit and other accounts in
any name used by, on b~half or for
the benefit of the bankrunt.
to require the bankrupt to supply to
the
Official
Trustee1
quarterly
statements of all depos~ts into and
drawings from such accoun s.
Volume 1
-271-
Chapter 10
Recommendations
into
the
the
Building
Societies
{a)
{b)
{c)
Volume 1
that
{d)
to
add
provisions
disqualifying
certain persons from participating in
the management of building societies
on
grounds
similar
to
those
disqualifying
persons
from
participating in the management of
companies;
{e)
{f)
{g)
{h)
-272-
Chapter 10
Act
Recommendations
(i)
(j)
(k)
(1)
10.035
I recommend that the i vestigative staff of
the office of the Commissioner of Corporate Affairs be
available to the Registrar of Buildin Societies to assist
in the conduct of investigations.
10.036
I recommend that Sectio
9 of the
1977 be amended so that sub-section 2 rovides:
Bail Act
us~
Volume 1
-273-
Chapter 10
Recommendations
attesting to
the surety;
the
proprietorship
of
(b)
where
any
mortgage
or
other
encumbrance exists over the property,
a document from the mortgagee or
other person entitled to the benefit
of
such
encumbrance,
caveat
or
otherwise, describing the nature of
the encumbrance and the effect if any
on the value of the property;
(c)
a
document
containing
a
sworn
valuation
by
an
accredited
real
estate valuer as at the date on which
the application for bail is made.
recommend
investigations
Volume 1
-274-
Chapter 10
Recommendations
recommend
that
the
se ection of
the
joint
10 of this
Volume 1
matters
contained
-275-
Aust~alian
in
Federal Police
Volume
11
of
Chapter 10
this
Volume 1
-276-
References