Acting ICAC continues to hide conflict of interest from public, as integrity agency calls for disclosure | NT Independent

Acting ICAC continues to hide conflict of interest from public, as integrity agency calls for disclosure

by | Jun 27, 2024 | Business, News | 4 comments

Acting anti-corruption commissioner Naomi Loudon – who is being paid $500,000 a year to run the Office of the ICAC while commissioner Michael Riches is investigated for “inappropriate behaviour” – has refused again to publicly disclose her conflict of interest in Labor’s election travel rorts investigation, while the Centre for Public Integrity recommended she publicly disclose it to boost public confidence.

An independent MLA has also said Ms Loudon’s refusal at Budget Estimates hearings earlier this month to explain the nature of the conflict of interest has “cast more suspicion on the internal machinations of the beleaguered NT ICAC”.

Meanwhile, ICAC Inspector Bruce McClintock, who is said to be providing Ms Loudon with “ongoing assistance and support” in the role, said he had “no idea” Ms Loudon had a conflict of interest in relation to the investigation.

Geoffrey Watson, director of the Centre for Public Integrity, told the NT Independent Ms Loudon should disclose her conflict publicly in keeping with best practice for anti-corruption commissioners.

“The problem with [not disclosing it] is the public is not in a position to judge whether the conflict has been properly managed,” he said.

“Conflicts that are managed internally, inside organisations are commonly mismanaged.”

The Office of the Independent Commissioner Against Corruption is responsible for investigating corruption and other misconduct in the Northern Territory public service, including politicians, judges and the police.

Ms Loudon was appointed as the acting ICAC earlier this month, following Mr Riches’s domestic violence allegations being made public, but told Estimates hearings that she has a conflict of interest in relation to a three-year investigation into Labor’s election rorts that probed former chief minister Michael Gunner and his staff using taxpayer money to fly to remote communities on polling days in marginal electorates. She said she had no involvement in the investigation and was not aware of the first report.

While Mr Riches’s initial report – titled Operation Jupiter – made no findings whatsoever as to the appropriateness of using taxpayer money for political campaigning during an election period, he pledged to release a second report to Chief Minister Eva Lawler by June 30 focused solely on Labor government staffers’ misuse of public resources during the 2020 election period. Ms Lawler has pledged to release parts of that report publicly.

It appears unlikely the OICAC will meet that Sunday deadline. Ms Loudon refused at Estimates to disclose what her conflict is, telling Parliament it was an “operational matter”.

However, the NT Independent revealed last week that Ms Loudon may have a personal conflict of interest involving her close friendship with at least one former Labor staffer connected to Ryan Neve – Mr Gunner’s former deputy chief of staff – who approved the questionable travel expenses and helped run Labor’s 2020 re-election campaign from the chief minister’s office while drawing his taxpayer-funded salary. He is expected to be one of the subjects in the second report, as is at least one current staffer of Ms Lawler’s.

Ms Loudon has refused to say if that was the conflict she disclosed internally.

She has also made no comment on compromising photos that were circulated in the office purportedly of her in a highly intoxicated state at a Darwin drinking establishment sometime last year. Mr McClintock also made no comment when asked if he was aware of the compromising photos of Ms Loudon.

Independent MLA Robyn Lambley, who asked Ms Loudon what her conflict of interest was during Estimates hearings, said providing evidence to a parliamentary committee was a “serious matter” and that all witnesses have a legal responsibility to “answer questions honestly”.

“In hindsight, Ms Louden should have been made to answer the question,” she said. “Why did Ms Louden think she was able to choose not to answer this highly relevant question?

“Unfortunately for Ms Louden, not answering the question has raised more questions than answers. It has also cast more suspicion upon the internal machinations of the beleaguered NT ICAC.”

Ms Lambley added that she was concerned the second report of Operation Jupiter would not be delivered.

“It is imperative…[that an explanation is provided for] exactly why Ms Loudon could not participate in the ICAC investigation into Gunner’s campaign rorts,” she said. “Does this also mean she cannot provide the full Operation Jupiter report to the Chief Minister on Sunday June 30, as promised?”

Mr McClintock, who is providing “ongoing support and assistance” to Ms Loudon in the job said his involvement did not create a conflict of interest if a complaint were filed about Ms Loudon.

“I have no idea what you are talking about in relation to…your references to a (supposed) conflict of interest on the part of Ms Loudon,” Mr McClintock wrote in an email.

“My role as Inspector under the Act is not limited to dealing with complaints. I am required in specific terms to evaluate the performance of the Independent Commissioner and give feedback.

“There is no basis for [the] suggestion that I would be hindered in any way from performing my functions as Inspector.”

Ironically, Mr Riches had disclosed his interests on the ICAC’s website, including that he is currently completing a Masters degree at the University of Sussex, England, has a mortgage with ING Bank and holds superannuation with Australian Super and Super Hero.

Ms Loudon is scheduled to give a presentation to the Australian Public Sector Anti-Corruption Conference to be held in Darwin next month on the topic of “Integrity in the Northern Territory”.

The conference appears to be going ahead, despite Mr Riches facing an investigation by the Public Employment Commissioner for alleged “inappropriate behaviour” towards an undisclosed number of female staff members in the office of the ICAC.

 

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4 Comments

  1. How can you investigate matters of integrity when you have none yourself?

  2. Ms Loudon is scheduled to give a presentation to the Australian Public Sector Anti-Corruption Conference to be held in Darwin next month on the topic of “Integrity in the Northern Territory”.

    It must be time for a bit of stand-up comedy.

  3. $10,000 per week could possibly attract a FIFO ICAC Commissioner with no connection to these cronies.

  4. If she has a conflict with NT Labor then she cant do about 90% of her job. This is prefect for Labor and they hang on to Ms Loudon. It is important to know what the conflict is so please keep pushing Mr Walsh.

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