In short
- ICAC's evaluation will review department policies but is not a formal investigation, and its powers were limited by 2021 legislation.
- If ICAC finds potential corruption, it must refer the matter to the OPI before it can investigate, causing delays.
What happened
The Malinauskas government faced a scandal involving an alleged attempt by an outlaw gang member to influence a labour hire company on the Torrens to Darlington upgrade. After media reports and political pressure, Premier Malinauskas wrote to the Independent Commission Against Corruption (ICAC) requesting an evaluation of the project to ensure safeguards against organised crime.
ICAC head Emma Townsend agreed to evaluate the Department for Infrastructure and Transport's policies, but clarified this is not a formal investigation. Due to 2021 legislative changes, ICAC cannot start investigations on its own motion and must refer potential corruption matters to the Office for Public Integrity (OPI), which can cause significant delays.
I have previously expressed concern about the consequences of the inability to refer matters directly to the Director of Public Prosecutions, including inefficiency and unnecessary delay," Ms Townsend said, adding she has made "comprehensive submissions" about this to a parliamentary committee.
In numbers
- $15.4 billion Torrens to Darlington project value
- six to 12 months Estimated delay to trial for corruption matters
Named in this item
Organization, regulator AU — —
What compliance teams should check
- Review the Department for Infrastructure and Transport's policies and procedures for the Torrens to Darlington project as ICAC will evaluate them.
- Monitor the Office for Public Integrity's role in assessing complaints and referrals related to the South Road project.
- Assess compliance with the 2021 legislative changes that limit ICAC's investigative powers and referral process.
Why it matters
This story highlights the impact of legislative changes on anti-corruption oversight in major infrastructure projects. Compliance officers must understand the limitations imposed on ICAC, including its inability to initiate investigations independently and the requirement to refer matters through the Office for Public Integrity. These constraints can delay the detection and prosecution of corruption, increasing risk exposure for government contracts and making robust internal controls and reporting mechanisms essential for AML/CFT compliance in public sector projects.
Catch stories like these on your own customers.
complead screens your customers against adverse media, sanctions and PEP lists, and re-checks them every day. When a name you hold turns up in the news, it lands in your case queue with the evidence attached.