Getting the NACC of things: Australia progressing a National Anti-Corruption Commission

The Bill, currently before the House of Representatives, will have wide reaching implications for government actors (like MPs and their staff as well as government employees) and private entities alike. As the drafting currently stands, businesses contracted or sub-contracted to work with or for the Australian Federal Government will also be captured by the law.

The new watchdog and its (likely) powers

Under the Bill, the National Anti-Corruption Commission (NACC) will act as an independent agency comprised of a Commissioner and three Deputy Commissioners (appointed by the Governor-General on recommendation from the Government) with the power to investigate and report on serious or systemic corruption and refer that matter for prosecution. 

The NACC will, if the current form of the Bill comes into law, be able to hold both private, and, in exceptional circumstances, public hearings.  This is one of the most contentious elements of the Bill, and it is likely to be the subject of much scrutiny in the upcoming review process.  

For now,  compliance and risk functions in businesses operating Australia should maintain a close watch on developments and begin to plan to incorporate this new regulator into internal training and commercial risk assessment processes.  

"Corrupt conduct" – how is it defined?

The current wording states:

s8(a) - Meaning of corrupt conduct 
(a) any conduct of any person (whether or not a public official) that adversely affects, or that could adversely affect, either directly or indirectly: 

1. the honest or impartial exercise of any public official’s powers as a public official; or 
2. the honest or impartial performance of any public official’s functions or duties as a public official; … 

The expected impact on businesses contracting with the Australian Government 

Importantly for businesses, the NACC will have jurisdiction over Contracted Service Providers, (including their employees and officers)…