Integrity under the spotlight: The National Anti-Corruption Commission’s early impact

The National Anti-Corruption Commission (NACC) was established as an independent Commonwealth agency on 1 July 2023 to investigate, detect, and report on serious or systemic corruption within the Australian Government public sector.

Its formation marked a significant step in addressing concerns about corruption and ensuring greater accountability at the federal level. However, its performance since inception has sparked debate, with critics questioning its effectiveness and transparency, while others emphasise that it is still in its early stages of operation.

The NACC’s powers

The NACC has the authority to investigate serious or systemic corrupt conduct across the entire Commonwealth public sector, including “any person” who adversely influences a public official.

Like its State and Territory counterparts, the NACC possesses significant powers akin to those of a royal commission, enabling it to investigate comprehensively and independently of government influence.

Achievements and activities

Public engagement and education

The NACC has published guidelines and conducted workshops aimed at educating public officials and the public about corruption risks.

The NACC has also worked with public sector agencies to foster ethical leadership and develop tailored strategies for identifying and mitigating corruption risks.

Corruption prevention guidance

In a recent address to the Public Sector Integrity & Governance Conference, Deputy Commissioner Kilgour highlighted the NACC's focus on proactive corruption prevention. It is developing practical guidance to help public sector agencies identify and address corruption risks, including tools, case studies, and best practice frameworks.

The NACC is also tailoring sector-specific guidance to address unique risks, such as enhancing transparency in procurement and strengthening whistleblower protections. It also plans to release periodic updates on emerging corruption trends to help agencies respond effectively to evolving risks.

Referrals and investigations

As at the date of writing, the NACC has received 2,083 referrals this financial year. It is currently conducting 34 preliminary investigations, 33 corruption investigations, and 10 joint investigations with other agencies. Additionally, it is overseeing or monitoring 19 investigations by other agencies and has six matters before the courts.

The NACC has just concluded its investigation into the Australian Government's $2.4 million compensation payout to Brittany Higgins, finding no evidence of corruption. The Commission said in a statement that “[d]ocuments produced showed that decisions made in relation to the settlement were based on advice from independent external solicitors and experienced senior and junior counsel.”

The NACC prioritises cases that pose significant risks to public trust and institutional integrity, focusing on systemic corruption and vulnerabilities in governance frameworks. Collaboration with other integrity bodies remains a key part of its approach to tackling corruption effectively.

Legislative and policy influence

The NACC has contributed to policy discussions and provided recommendations to the government on legislative reforms to strengthen transparency and accountability.

Annual reporting

The NACC’s first Annual Report for 2023–24 outlined its operations, highlighted key challenges, and detailed plans for future improvements.

Criticisms of the NACC

Perceived ineffectiveness and transparency concerns

While the NACC's investigations have resulted in eight successful convictions, some critics argue that it has not yet delivered meaningful results, raising questions about its efficacy and ability to meet public expectations. Others, however, recognise that the Commission is still in its early stages of operation.

The NACC has also faced criticism for its level of confidentiality, with some commentators suggesting it lacks the transparency seen in State-level anti-corruption bodies.

Handling of the Robodebt referrals

The NACC faced significant criticism for its initial decision not to investigate referrals from the Royal Commission into the Robodebt Scheme, with many questioning its willingness to address high-profile cases of alleged systemic corruption. Public backlash led the NACC to appoint an independent eminent person to reassess the referrals, but concerns about transparency and decision-making processes persisted.

Anthony Whealy KC, chair of The Centre for Public Integrity, criticised the involvement of the NACC’s deputy commissioners, describing them as “arguably tainted,” and called for a “truly independent person” to lead the investigation. He warned that the initial decision not to investigate had caused “substantial damage” to the NACC’s credibility.

This controversy has raised broader concerns about the NACC’s processes, including how it prioritises cases and communicates decisions, potentially undermining public confidence in its ability to address systemic corruption.

Concerns over political influence

Some politicians have raised concerns about the NACC's impartiality, suggesting that political considerations could influence its selection of investigations. However, the Commission has consistently reaffirmed its independence and commitment to fairness in its operations.

Leadership scrutiny and conflict of interest allegations

Commissioner Paul Brereton has faced scrutiny regarding potential conflicts of interest when handling the Robodebt referrals.

This has led to calls for clearer protocols to manage internal conflicts and ensure impartiality in decision-making.