The Northern Territory's anti-corruption watchdog "threw away the rule book" when it made adverse findings against a former board member of the Darwin Turf Club over the handling of a $12 million grant for a new grandstand, the Northern Territory Supreme Court has been told.
In June last year, then-independent commissioner against corruption, Ken Fleming, released a damning report into the controversial taxpayer-funded facility at the Fannie Bay Race Course.
The most-serious findings of "corrupt conduct" were levelled against the club's former chairman, Brett Dixon, whose jointly owned company Jaytex Construction was the successful tenderer for the project.
Findings of "improper conduct" were also made against four other individuals, including former board member Damien Moriarty, who is seeking to have the adverse findings relating to him quashed by the Supreme Court.
On the first day of proceedings, Mr Moriarty's barrister, Fiona Forsyth QC, told the court her client had been inappropriately swept up in the ICAC's pursuit of its main target, Mr Dixon.
"What the ICAC then did was to really push through this investigation … taking out everything in its path, including Mr Moriarty, who really was only a bit player in this whole saga," Ms Forsyth said.
"In our submission, what the ICAC seems to have done is to throw away the rule book just to get things done and make as many findings as possible."
According to last year's ICAC report, Mr Moriarty made "false" public statements after the awarding of the contract to Jaytex, including when he said: "Mr Dixon was at arm's length from this process at all times."
The ICAC said this, combined with the statements of others, "concealed the true position of Mr Dixon's involvement" in the board's process and inhibited the ability of the government to prevent the contract being awarded to Jaytex Construction.
It also found Mr Moriarty engaged in misconduct, unsatisfactory conduct and a breach of public trust.
However. in the Supreme Court on Wednesday, Ms Forsyth questioned the integrity of the ICAC's investigation.
She noted that, when the ICAC twice called Mr Moriarty in for questioning, it assured him verbally and in writing that he was not under investigation.
However, Ms Forsyth told the court that the transcript of his interviews showed the ICAC had already levelled its sights on the propriety of his earlier public statements.
"It was clearly the case that he was in fact under investigation," she said.
"And, in our submission, that is a very clear denial of procedural fairness."
Ms Forsyth told the court she was not accusing the ICAC of acting in "bad faith" but, rather, that its statements to Mr Moriarty were inaccurate.
She also said the ICAC used "extraordinary and unusual methods to obtain evidence", including covertly recording a conversation with another board member of the turf club.
Ms Forsyth said that, during its natural justice process, the ICAC had also failed to genuinely consider Mr Moriarty's response against the adverse findings.
The hearing continues on Thursday.
ICAC's findings are also being challenged in three separate court matters by Mr Dixon, another individual and the Darwin Turf Club itself.
