Thursday, 2 May 2019

The Trouble with Water: National Party conflicts of interest and the rising odour of corruption



The Saturday Paper, 27 April 2019:

Former Australian Federal Police commissioner Mick Keelty is examining links between political donations and the issuing and buyback of agricultural water licences, amid concerns that undeclared conflicts of interest could be fuelling corruption.

Keelty told The Saturday Paper this week he is concerned about the extent of undeclared conflicts of interest among politicians, lobby groups and businesses operating in the water market.

“I’m interested to see how conflicted politicians are declaring their conflicts of interest when decisions are made about water policy,” he said.

“Where you get those conflicts of interest and they’re not addressed, that’s ripe for corruption.”

His comments come as the Commonwealth Environmental Water Holder confirmed to The Saturday Paper that two contentious water licences for which the federal government paid $79 million have returned next to no water to the environment since they were purchased two years ago.

Keelty is conducting inquiries in his capacity as the Northern Basin commissioner for the Murray–Darling Basin, a position to which the federal agriculture minister, David Littleproud, appointed him in August last year with the support of the Labor opposition.

On the issue of water licences, he draws a direct comparison with the management of development applications by local government, where conflicts of interest are required to be declared.

“We’re not seeing it in water, and it should be there,” he said.

Keelty, who was also the inaugural chair of the Australian Crime Commission, is not categorical about what exposing such conflicts might reveal, though he suggests they are widespread.

“I’m not saying it’s corruption; I’m saying it’s conflict of interest,” he said. “But you could draw a conclusion that if conflicts of interest aren’t transparent, it could lead to corruption … Water is now the value of gold. If you have corruption in other elements of society, if you have corruption in other areas of business, why wouldn’t you have it here, when water is the same price as gold?”

“IT IS NOT AS TRANSPARENT AS I FIRST THOUGHT AND IT IS MUDDIED BY IN-KIND DONATIONS AND THIRD-PARTY COMPANIES OR ENTITIES THAT ARE CREATED TO OBSCURE WHO THE REAL DONORS ARE.”

Over the past decade, Keelty has undertaken inquiries and investigations for various governments on issues relating to integrity in government policy, especially in emergency management.

Now turning his attention to the struggling river system, he is aiming to improve transparency in the management of the northern Murray–Darling Basin, which has a far worse compliance record than the river system’s southern half.

His task is to ensure that water gets back to the river system where it is needed and that those who rely on this water, and should have rights for its use, are not being ripped off, especially disenfranchised Indigenous communities and others living downstream.

Keelty argues that excessive numbers of water licences have been issued – sometimes on questionable grounds – and are seriously damaging the river.

“When you look at it strategically, there are too many licences having been allocated for the amount of water that is available,” he told The Saturday Paper.

“Nobody is addressing that, that I can see.”

Keelty also believes the system is too dependent on property owners acting within the law and reporting their own activities.

“The system relies on honesty and integrity but if you look at the number of prosecutions and infringement notices issued in New South Wales in the last 12 months, the pillar of honesty doesn’t appear to be that strong,” he said.

“I can understand the suspicion and the frustration in the southern basin states because they are directly impacted by the efficiency of the systems in the northern basin.”

Keelty is currently examining the Australian Electoral Commission records of political donations, checking links between donors, decision-makers and recipients of water licences or sales contracts.

“Clearly the National Party is probably, I guess, a glaring example of where politicians could be conflicted because their constituency are the very people who are using the water and the very people who are lobbying about water policy,” he said.

But he is examining links to other parties as well. “It’s not just the National Party. Different governments will make decisions about water policy that presumably benefit their state and their constituents.”

Keelty has concerns about the system of political donations more broadly.

“It is not as transparent as I first thought and it is muddied by in-kind donations and third-party companies or entities that are created to obscure who the real donors are,” he said. “I’ve found it more difficult and less transparent than what most of us probably think it is.”

The former police chief is also arguing for proceeds-of-crime legislation to be more clearly linked to offences in the water market because he believes the risk of losing a farming property would be a significant deterrent.

“Where you can prosecute criminal charges for offending, it makes sense to have parallel action in proceeds of crime because that will have more of an impact than perhaps some of the civil charges that are being used to remedy the situation to date,” he said.

Read the full article here

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