The New South Wales law enforcement watchdog has reopened an investigation into former police commissioner Mick Fuller, after its own oversight body questioned its decision to clear him of misconduct over undeclared racehorse shares.
The ABC can reveal the Law Enforcement Conduct Commission (LECC) is reconsidering several of its findings in response to concerns raised by the new inspector of the commission, Bruce McClintock SC.
An ABC investigation revealed in February of this year that the 34-year veteran of the NSW Police had failed to declare his shares in racehorses, in potential breach of the force's code of conduct and the New South Wales government's anti-corruption rules.
Mr Fuller owned the racehorses with senior police, sporting identities, media bosses and businessmen, including two men who became suspects in criminal investigations.
The ABC's stories led to the New South Wales government blocking Mr Fuller from a position on the board of Racing NSW.
Less than a month later, the LECC released a report into Mr Fuller's racehorse ownership, finding there was no substance to any of the allegations.
The police watchdog had received complaints since 2019 about Mr Fuller's racehorse ownership, the report stated.
"The repetition of old claims at the time of his retirement would appear to be a malevolent attempt to cause him harm" by "one or more ... disaffected officers," the report said.
Six days later, the government announced Mr Fuller would jointly run an inquiry into the state's flood disaster.
He also secured a job as a partner with Australia's biggest consulting firm, PwC.
Mr McClintock's examination of the LECC investigation came after an ABC complaint to him about the commission's report.
In a letter to the ABC in September, Mr McClintock said the LECC "volunteered" to extend the investigation, codenamed Operation Kurumba, after he raised "certain concerns" about its report.
The ABC understands that Mr McClintock disputed the LECC's conclusion that there was no evidence of misconduct. Mr McClintock said the finding was inconsistent with Mr Fuller's failure to declare his private interests to the government over several years.
Under the NSW Police code of conduct, employees are required to declare any private interests — including shareholdings and social activities — which could give rise to actual, potential or perceived conflicts of interest.
As commissioner, Mr Fuller was required to submit such a declaration at least once a year to the state government.
The ABC's investigation revealed he did not submit a declaration of interests until last year, his final year as commissioner, after he had given up his racehorse shares.
According to the Operation Kurumba report, Mr Fuller said he also submitted a declaration in 2017, the year he became commissioner, but neither the LECC nor the government could locate such a document.
Mr Fuller informally disclosed his racehorse ownership in 2019 to then-police minister David Elliott, who “took the view that he was entitled to do so as a hobby”, the report said.
Barrister John Agius SC — who was counsel assisting the royal commission into NSW police corruption in the 1990s — told the ABC he was "disturbed" by the LECC's report.
"I believe Mick Fuller did break the rules, which required him to disclose business interests where there may be even a perception of conflict of interest," Mr Agius said.
"It seemed that the LECC only dealt with half of the problem.
"It was important for the commissioner to demonstrate to those under his command that he would comply with the rules."
All NSW Police employees are also required to declare associations with people who are suspected of crime or other questionable activity.
Mr Agius said it was "terribly important" that Mr Fuller declared any associations in the horseracing industry "that might even carry with them a perception of misconduct".
Report blamed 'considerable disharmony' in NSW Police
According to the Operation Kurumba report, Mr Fuller said he owned four horses between 2012 and 2020 in a punters club involving other police officers.
The investigation focused on his shares in two of those horses: Once Epona Time in 2019 and 2020 while he was commissioner, and Mad Magic from 2015 to 2017, before he was promoted to the role.
Among the co-owners were leaders in industries declared "high-risk" by NSW Police for conflicts of interest, including liquor, gaming, racing and security.
The LECC probed his associations with two co-owners who were investigated for criminal offences and with the horses' trainer, David Vandyke.
Mr Vandyke was punished several times over banned substances by racing authorities in New South Wales and in Queensland.
One of the co-owners became a suspect in a high-profile NSW Police fraud investigation but was not charged. Another was charged over an illegal asbestos dump, but the prosecution was abandoned last year.
The LECC report said it was "worrying" that the fraud investigation was raised in the ABC News stories, "and it lends credibility to the explanation that someone is prepared to throw whatever mud they can, in the hope something sticks".
That report referred to only one interview, with Mr Fuller himself, as part of its investigation as well as an examination of pre-existing paperwork.
The LECC found there was "considerable disharmony in the upper echelons of the NSW Police Force" when Mr Fuller became commissioner, and his attempts at reform provoked a bitter backlash.
"He no doubt created hostility amongst people who thought they should be promoted in preference to others, and also in people who felt they should leave the NSW Police Force," the Operation Kurumba report said.
"It would appear that it is probably one or more of these disaffected officers who have mounted a campaign to harm the reputation of Mr Fuller as the police commissioner.
"His bid to join the Board of Racing NSW failed because of these allegations being raised. It raises a distinct possibility that these allegations were raised for that very purpose."
After the Operation Kurumba report was released, the ABC rejected suggestions it was involved in a "malevolent" smear campaign against Mr Fuller and called on the LECC to detail the steps it took to draw its conclusions.
The LECC declined to do so, stating in an email to the ABC it would " not … enter into a debate with you".
Subsequently, the ABC complained to the inspector that the LECC had made adverse comments about its stories without giving the broadcaster an opportunity to be heard, in potential breach of the LECC Act.
The agreement to reconsider the findings was one of the first decisions by the LECC's new chief commissioner, Peter Johnson SC, and the new inspector of the LECC, Mr McClintock, in their respective roles.
Mr Johnson was appointed as chief commissioner in July and Mr McClintock was named inspector in June.
The law enforcement watchdog will table the supplementary report of its Operation Kurumba investigation in the New South Wales parliament.
Although the ABC invited the LECC, Mr McClintock and NSW Police Commissioner Karen Webb to respond to its questions, all stated that it was not appropriate to comment on ongoing investigations.
A spokeswoman for Commissioner Webb said the NSW Police Force would strengthen policies "when and where necessary".
Mr Fuller did not respond to the ABC's questions.
