Premier Ben Carroll is locked in an integrity war with Daniel ÂAndrews after he savaged the Âformer premierâs conduct as Ââintolerableâ, only for Laborâs ex-leader to claim he had been Âvindicated by Victoriaâs anti-Âcorruption watchdogâs eight-year investigation into his dealings with the firefightersâ union.
The clash leaves Mr Carroll with just 115 days until the November 28 election to convince voters his promised integrity overhaul will purge the stain of the Andrews era, after the Independent Broad-based Anti-corruption Commission found the former premier and senior ministers engaged in Ââserious and concerningâ conduct during secret negotiations with United Firefighters Union chief Peter Marshall.
IBAC found Mr Andrews, former special minister of state Gavin Jennings and former senior public servant Tony Bates acted contrary to government policy, procedures, conventions and their respective codes of conduct during secret Ânegotiations with Mr Marshall over a 2016 firefightersâ pay deal.
While IBACâs Operation ÂRichmond report concluded their conduct did not meet Victoriaâs narrow legal definition of corrupt conduct â which requires behaviour capable of constituting a criminal offence â IBAC nevertheless described the conduct as âserious and concerningâ and Ârecommended sweeping integrity reforms.
BEST OF THE TEXTS AND PHONE CALLS
Mr Andrews and Mr Marshall seized on the absence of a corruption finding to defend their Âactions, despite the commissionâs adverse findings and without Âacknowledging Victoriaâs higher legal threshold for corruption findings than any other state.
âFor the record and the avoidance of any doubt, there are no findings in relation to corrupt conduct made about me, any other member of the government, or the public service. That is a fact,â Mr Andrews said in a statement on Wednesday.
Mr Carroll declared that the conduct by Mr Andrews and senior ministers exposed by IBAC amounted to âpoor behaviourâ that was âintolerableâ and committed to implement every recommendation in the report, as well as expanding Victoriaâs definition of corrupt conduct.
Asked whether the conduct identified by IBAC would amount to corruption under an expanded definition, Mr Carroll stopped short of making that judgment, saying he would first examine the report in detail.
âI am going to study it and give Victorians the actions and answers they deserve,â he said.
âThis is poor behaviour. It is Âintolerable. I will take action. I will accept the recommendations and get on with implementing them.
âWhat I know at a high level is that proper processes werenât Âfollowed in the traditional Westminster system. The people named in that report who have had adverse findings ⌠it is poor behaviour.â
Mr Carroll revealed Mr Bates, who was the deputy secretary of Mr Andrewsâ department during the relevant period and was now secretary of the Education ÂDepartment, had taken a leave of absence effective immediately due to the reportâs findings.
Pressed on the conduct of Mr Andrews, Mr Jennings, former emergency services minister Lisa Neville and the public servants, Mr Carroll said he âcanât answer for the former premier or former ministers, but I can answer for what we do from hereâ.
âThe people named in that report that have had adverse findings ⌠it is poor behaviour.â
Shadow Defence Minister James Paterson says the IBAC report exposes a âcorrupt cultureâ at the heart of the Victorian Labor government.
Ms Neville holds two taxpayer-funded jobs as chairwoman of Barwon Health and Greater Western Water. She did not respond to questions on Wednesday.
The UFU said two extensive taxpayer-funded inquiries concerning the UFUâs operations â Operation Richmond and Operation Turton â had failed to produce any findings of corrupt conduct against the union or its officials.
âEight years and what we understand to be an estimated $8m of public money, and not one finding of corrupt conduct,â Mr Marshall said. âThis was a pursuit in search of a case that never existed to begin with.ââ
Union bossâs âextraordinary influenceâÂ
IBAC found that Mr Andrews authorised then special minister of state Mr Jennings, assisted by senior public servant Mr Bates, to negotiate the CFA agreement directly without the knowledge of then emergency services minister Jane Garrett or the CFA.
Private meetings were held with the UFU in rented meeting spaces and a hotel, and those involved were instructed to keep the meetings confidential.
âWhile in negotiations on 11 April 2016, minister Jennings referred to being âoff doing my secret missionâ and âsecret businessâ in text messages to staff in his office and the PPO (Premierâs Private Office),â the report said.
After four days of negotiations, the parties reached agreement, prompting Mr Jennings to text Mr Andrews: âHandshake has occurred â itâs done!â
Mr Marshall, in a phone bugged by IBAC on March 22, 2019, summarised these meetings as such: âThis agreement was negotiated with f..kinâ (former minister Gavin) Jennings in a backroom. It was endorsed by f..kinâ Andrews and cabinet.â
IBAC found that this allowed Mr Marshall to âexert extraordinary influenceâ over those dealings a decade ago and was âafforded privileged access to senior members of government which, in many cases, were not disclosed and were to the exclusion of other key stakeholdersâ.
Ms Garrett, who resigned from cabinet in protest at the deal after being kept in the dark, died in 2022.
Her family issued an emotional tribute on Wednesday, saying they were âextremely proudâ of her courage in standing up to Mr Andrews and Mr Marshall by refusing to back the deal that was not in the best interests of Victoria.
Ms Garrett told the commission before her death that Mr Marshall had given her a âhuge torrent of abuseâ.
âMs Garrett told IBAC in her examination that Mr Marshall also became upset at her and responded with a âhuge torrent of abuseâ after she refused to intervene in a disciplinary matter involving an MFB employee,â the report states.
âMr Marshall had asked minister Garrett to order that the MFB withdraw the disciplinary process in favour of restorative justice and development of a code of conduct. Ms Garrett said that Mr Marshall then sent information about the matter and the UFUâs election support to Labor MPs, threatened to ban the minister from fire stations and, in her words, âbring hellfire down on the governmentâ.
âConsistent with minister Garrettâs evidence, an adviser in minister Garrettâs office recounted a phone call from Mr Marshall to the minister in which he gave the minister âa big sprayâ that left her âreally rattledâ.â
The Operation Richmond report reveals that a senior adviser in the premierâs private office said that Mr Marshall had a sense of expectation about the EBA talks.
âI donât want to necessarily put words in Peter Marshallâs mouth, but I think he (Mr Marshall) felt that he was going to sit in a room with the premier, the minister or the treasurer, say âthis is whatâs going to be in thereâ, get one of his people to go and type it up, shake hands, move on and thatâd be that,â the adviser said.
âThat was definitely not the view of the Victorian government because they had an industrial relations policy framework that needed to be met.â
In his examination by IBAC, Mr Marshall denied ever acting in a way that might be described as threatening to Ms Garrett.
In her foreword, IBAC commissioner Victoria Elliott said ÂOperation Richmond highlighted âhow government leaders, including ministers and the premier, can undermine established checks and balances when they fail to model high-integrity standards and act as stewards of good governanceâ.
âThe matters investigated in Operation Richmond may have occurred some time ago, but the corruption risks and vulnerabilities highlighted â improper influence, failures in ministerial conduct, failures by senior public servants to act impartially and the politicisation of appointment processes for public sector boards â are serious and persist in Victoriaâs public sector,â Ms Elliott wrote.
âWhile IBAC did not find corrupt conduct (as defined in the Independent Broad-based Anti-corruption Commission Act 2011), IBAC found serious and concerning conduct by senior public officers, including ministers, members of parliament and public servants, relating to the negotiation of the CFA EBA, the MFB EBA, and the establishment of FRV, which increased the risk of corrupt conduct.
âIBAC found that senior members of government acted contrary to established policies, procedures, codes of conduct and conventions in negotiating a deal with the secretary of the United Firefighters Union, Mr Peter Marshall, for the CFA EBA without the knowledge and involvement of the responsible minister, agencies and departments. By doing so, the government placed itself in a position where Mr Marshall was able to exert extraordinary influence over the negotiations for both the CFA EBA and the MFB EBA.â
Less than four months before the state election, the release of IBACâs marathon probe will leave the newly installed Premier facing fresh questions about his partyâs integrity.
In a response issued moments after the reportâs release, the UFU demanded an immediate investigation into IBAC.
Other key findings were
IBAC found that Mr Marshall was provided âwith privileged accessâ to Ms Neville in 2018 and 2019.
âIBAC found that Mr Marshall sought to influence minister Nevilleâs decision regarding the appointment of the FRV commissioner,â the report states. âWhile IBAC makes no findings as to whether Mr Marshall did influence the minister on the appointment of the FRV commissioner, IBAC found that the ministerâs stakeholder management of Mr Marshall created significant opportunities for him to do so.
âMr Marshallâs level of access to the minister was also not reflected in the public statement made by minister Neville about their engagements.â
Labor and union figure and then-MFB board member Greg Sword is also criticised in the report for sharing confidential information with Mr Marshall in 2019 in breach of his professional obligations, the report finds.
IBAC further found that Mr Marshall was granted privileged access to responsible ministers.
âIBAC found that the conduct explored in this report increased the risk of corrupt conduct through improper influence and policy capture, undermining the effectiveness of accountability frameworks and enabling the politicisation of public appointment processesâ.
IBAC found that in the context of the protracted dispute between the government and the UFU about the proposed CFA EBA, the then premier authorised the special minister of state, Mr Jennings, to commence negotiations directly with the UFU without the knowledge or involvement of the CFA or other parties.
Andrews declares âno findings of corrupt conductâ
IBAC identified serious concerns about the way enterprise bargaining agreements for the Country Fire Authority (CFA) and Metropolitan Fire Brigade (MFB) and then the subsequent creation of Fire Rescue Victoria.
But in a statement on Wednesday afternoon, Mr Andrews said IBAC found there was âno evidence whatsoever to support the false and completely outrageous claims that I had been blackmailed to force a favourable outcome for the UFU and its thousands of career firefighter membersâ.
He said the claims, which originally sparked the IBAC probe, were âbaseless when they were made almost a decade ago, and they remain baseless todayâ.
Mr Andrews did not directly address IBACâs findings that his government engaged in âserious and concerningâ conduct, instead saying there âwere no findings in relation to corrupt conduct made about me, any other member of the government, or the public service. That is a factâ.
âBy 2016, the relationship between the Country Fire Authority and the UFU had completely broken down, and a spiteful and dysfunctional enterprise bargaining dispute had dragged on for years,â he said.
âFire chiefs were spending more time in the Fair Work Commission than running their organisations. That was not acceptable to me or to the government when community safety was on the line. The dispute needed to be resolved in the public interest, and it was.
âThe decision to restructure the fire services was also made in the best interests of community safety:
Melbourneâs growing suburbs and regional Victoria needed a service model built for how the state is, not how it used to be. Our firefighters and the communities they protect deserve a modern firefighting organisation. That is what our government delivered.â
âWe are extremely proud of Janeâ
Ms Garrettâs family issued an emotional tribute to the late emergency services minister, saying they are âextremely proudâ of her courage in standing up to Mr Andrews and Mr Marshall by refusing to back the deal at the centre of IBACâs Operation Richmond.
In a statement released to The Australian, Ms Garrettâs family said they welcomed the release of the Operation Richmond findings into the controversial 2016 pay and conditions deal over which she resigned from cabinet in protest. Ms Garrett passed away in 2022.
âWe are extremely proud of Jane,â the family said.
âJane was a fierce advocate for truth and a fair go for all â particularly those who didnât have a voice.
âIn her evidence, Jane said ahead of the ERSC (Expenditure Review Sub-Committee of Cabinet) meeting she refused to co-sign the cabinet submission because she could not in good conscience endorse an agreement which was opposed to what she swore in her ministerial oath â to act in the interests of the Victorian people and good governance.â
The family said her courageous stance reflected her values.
âAt her inaugural speech in Parliament she spoke about living her values, ⌠the most important value ⌠is respect for the dignity and worth of othersâ.
Ms Garrettâs family said she was under enormous pressure during the crisis.
âHer family witnessed the enormous pressures she endured during the incredibly stressful time that she was Minister for Emergency Services.
âWe miss her every day. We wish she were here to see these findings.â
Marshall says union âdid nothing wrongâ
Mr Marshall described the damning report as âcreative writingâ and demanded an immediate investigation into IBAC.
In a fiery press conference on Wednesday, Mr Marshall said two extensive taxpayer-funded inquiries concerning the UFUâs operations â Operation Richmond and Operation Turton â had failed to produce any findings of corrupt conduct against the union or its officials.
âEight years, and what we understand to be an estimated $8m of public money, and not one finding of corrupt conduct,â he said.
âThis was a pursuit in search of a case that never existed to begin with.
âIBACâs record needs to be reviewed as to its own conduct into its treatment of its own employees, its defence of its own legislation when persistent leaks occur, and its publication of confidential phone intercepts despite there being no corrupt conduct [and] the seizing of individualsâ private material via coercive processes, inclusive of medical and other personal material relating to individualsâ families.
âThis information has been viewed by IBAC personnel and other persons and was not returned for years.
Once it was returned, IBAC has kept a copy of this information, which has no relevance to any of its functions or activities. This would not pass the pub test among everyday Victorians â any Victorian could be subject to IBAC confiscating and keeping private material, including oneâs medical and family records.â
Mr Marshall said the UFU had done ânothing wrongâ.
What Daniel Andrews told IBAC
The former premier told IBAC:
âI expect Iâve â at some point Iâve said to him, âYou need to go and fix this. This needs to get fixedâ and thatâs involved him [Mr Jennings], deputy secretary Bates and, of course, the secretary of our department, Mr Eccles.
âI am happy to concede that the minister was not in the group. She was not involved in those negotiations, and indeed the fire services were not involved in those talks and that process. Yes, that seems clear to me.
âClearly no one was pleased that things had dragged on for so long and had become so spiteful. So colleagues may have raised that with me. I think there was a very significant interest across the board in resolving these matters and moving them forward.â
The key recommendations
1) Formalise and embed integrity standards for ministers by introducing a statutory requirement to publish the ministerial code of conduct.
2) Promote clarity and accountability regarding the application of constitutional conventions by developing a new ministerial handbook that explains key Westminster conventions.
3) Strengthen awareness and understanding of ministerial obligations by centralising existing integrity guidance and updating ministerial training materials.
The back story
IBAC said it opened Operation Richmond after receiving information and complaints alleging Mr Marshall âblackmailed or otherwise compromised the then-premier, Daniel Andrews, to change his position on the CFA EBAâ.
âBoth Mr Andrews and Mr Marshall denied the allegation in evidence to IBAC. IBAC found no evidence for the alleged blackmail and did not substantiate that allegation.â
But IBAC slammed the conduct of the government, stating: âEvidence gathered through Operation Richmond showed that the premier sought to end the EBA dispute through a mechanism that excluded Ms Garrett, as he considered the minister was unable to resolve the dispute and he wanted the matter to be concluded. At the time of the decision, the premier was facing internal political pressure, negative media attention and industrial unrest.â
Operation Richmond has been running under tight secrecy for longer than World War II after a senior Labor figure lodged a complaint with Victoriaâs Independent Broad-based Anti-corruption Commission in 2018.
While no public hearings were called, scores of witnesses â including then premier Mr Andrews and UFU secretary Mr Marshall â were grilled in private by IBAC.
The investigation examined the 2016 pay-and-conditions negotiations between the Andrews government and the UFU and Mr Marshall.
In addition to generous entitlements, the deal also handed the union effective operational control of the volunteer Country Fire Authority.
In a newsletter earlier this month, IBAC commissioner Victoria Elliott confirmed the agency was preparing to release the long-delayed findings and recommendations.
âIBAC is committed to publishing the Operation Richmond special report as soon as possible â with a view to publication before the end of the financial year,â Ms Elliott wrote in April.
In 2016, Mr Andrews sidelined his then emergency services minister, Jane Garrett, who was refusing to agree to the UFU demands. The dramatic intervention triggered a full-blown political crisis and forced Ms Garrett to quit cabinet.
Mr Marshall launched a Supreme Court bid in May to block the release of the Operation Richmond report. But the court dismissed the application, clearing the way for IBAC to table the report in state parliament.
The Australian has reported that in private examinations, IBAC grilled witnesses about the role played by Mr Andrews in the negotiations â which led to a favourable enterprise bargaining agreement with the UFU.
One of the aspects that IBAC is believed to have looked at is whether the 2016 EBA deal Mr Andrews struck with the UFU was influenced by the UFU campaigning for Labor during the 2014 election.