An audit of the funding arrangements for the Independent Commission Against Corruption (ICAC) has found they threaten its "independent status"

 

ABC News, 20 October 2020:

An audit of the funding arrangements for the Independent Commission Against Corruption (ICAC) has found they threaten its "independent status" because the Premier can "restrict access" to the money it receives.

NSW Premier Gladys Berejiklian ordered a review into funding models of the ICAC along with other key agencies including the Electoral Commission, the Ombudsman and the Law Enforcement Conduct Commission.

The Auditor-General Margaret Crawford has handed down her findings, a week after Ms Berejiklian gave evidence to the ICAC which is investigating her former boyfriend and MP Daryl Maguire.

"The current approach to determining annual funding for the integrity agencies presents threats to their independent status," the report concluded.

"The report argues these risks are not mitigated sufficiently under the current financial arrangements."

The Auditor-General also found that the funding was not "transparent" and "there are no mechanisms for the agencies to question or challenge decisions made".

The ICAC, along with the other agencies, receives its revenue through the annual budget process.

But the Department of Premier and Cabinet (DPC) and the NSW Treasury have restricted its funding through "efficiency dividends" and budget-saving measures.

The report says the DPC and NSW Treasury have interpreted legislation so that the full funding approved by Parliament doesn't have to be provided.

"This interpretation leads to the view that a Premier can restrict access to appropriation funding that was approved by Parliament," the Auditor-General found.

The agencies can ask the DPC for additional money to conduct its investigations and the ICAC has made requests on several occasions, mostly to cover large scale public hearings.

The Auditor-General has raised concerns with this model, noting that it’s "the only mechanism available" and "it could be seeking additional funding to investigate a senior government official".

The report found there were no criteria or guidelines for seeking extra funding, so "very little transparency".

"The process available to ICAC to request additional funding outside the annual budget creates further risks to its independence," the Auditor-General said.

"Some of these proposals were rejected without reasons being provided."....