The Northern Territory's anti-corruption watchdog failed to offer procedural fairness before making findings of improper conduct in a major corruption investigation, the Northern Territory Supreme Court justice has found.
Former Darwin Turf Club board member Damien Moriarty took the NT Independent Commissioner Against Corruption to court last year, after the ICAC made findings of misconduct, unsatisfactory conduct, and a breach of public trust over his involvement in a controversial government grant.
Then-Independent Commissioner Against Corruption, Ken Fleming, made findings against five individuals and the Darwin Turf Club board over the handling of a $12 million government grant for the new facility at Darwin's Fannie Bay racecourse.
Today, Justice Judith Kelly found Mr Moriarty was not afforded procedural fairness in relation to findings made against the Turf Club board as a whole, as he was only given an opportunity to respond to the findings made against him personally.
"The defendant failed to afford the plaintiff procedural fairness, by failing to ensure he was given notice of a proposal to make findings of unsatisfactory conduct and breach of public trust against him in his capacity against him as a member of Darwin Turf Club board and afford him to respond to such proposed findings," she said.
Report removed from ICAC website
New Independent Commissioner Against Corruption Michael Riches said the entire Turf Club investigation report had now been removed from the ICAC website.
"I have done so in order that the content of the report can be reviewed in light of the Supreme Court's declarations," Commissioner Riches said.
Outside court, Mr Moriarty said he was relieved by the finding after an "arduous" court process.
Government considering court findings
Justice Kelly found the other board members were offered an opportunity to respond to the findings against them, however the ICAC had directed them not to discuss the matter with Mr Moriarty and he was not told there would be findings made against the board.
She rejected claims Mr Moriarty was denied fairness in separate findings made against him personally, which his lawyers had argued were unjust because he had not been told he was under investigation when he was examined by ICAC staff.
"This contention cannot be accepted," Justice Kelly said.
"There is no obligation under the ICAC Act for the defendant to require a person against whom the ICAC is contemplating making adverse findings to attend for examination at all, let alone an obligation to put to the person during such an examination all matters that might later be the subject of adverse findings against the person."
"I do not presently contemplate re-publishing the public statement while other judicial proceedings relating to it are ongoing."
NT Chief Minister Natasha Fyles said the government would consider the findings, but did not indicate whether they would impact its plan to force the Darwin Turf Club to repay the $12 million grant.
"We understand the role that racing has, it is an important industry, and negotiations are continuing around their ongoing funding."
The ICAC office has been contacted for comment.
