Ex-Renewal SA boss John Hanlon seeks millions in damages over aborted ICAC prosecution

ICAC “concealed” its breaches of international law while pursuing a top public servant for corruption, a legal claim alleges, meaning the government should pay out a huge sum.

Ex-Renewal SA boss John Hanlon is seeking a multimillion-dollar compensation payment from the state government, saying ICAC “destroyed his career” through “misconduct, maladministration” and “concealing” breaches of international law by its investigators.

The Advertiser can reveal Mr Hanlon has submitted a pre-action claim over the alleged conduct of four former ICAC staffers – ex-Commissioner Bruce Lander, two ex-investigators and an ex-legal officer.

The claim alleges the group’s pursuit of Mr Hanlon was “fundamentally flawed from the outset”, causing him “significant psychological harm”.

Former Renewal SA boss John Hanlon, right, outside the District Court with his barrister David Edwardson KC after the DPP withdrew all charges against him. Picture: NCA NewsWire / Brenton Edwards

It alleges ICAC acted improperly by taking sworn evidence from German witnesses, without permission of that country’s government, and failing to disclose that fact to prosecutors.

It further alleges that, had prosecutors known, they would not have pursued the case – rather than having to drop it in court on the first day of trial.

While the amount sought is unknown, Mr Hanlon was earning $420,000 a year and had been promised a five-year contract extension.

Mr Hanlon, who has already been reimbursed $450,000 in legal fees over the botched prosecution, has retained top barrister Michael Abbott KC to represent him.

On Friday, Mr Hanlon’s solicitor Matthew Selley confirmed a claim had been lodged with the Crown Solicitor’s Office.

“We contend that the ICAC investigation was fundamentally flawed from the outset in several ways,” he said.

“In referring a brief of evidence to the DPP, without disclosing to the DPP that ICAC officers had breached German law by taking affidavits from witnesses in Germany without authority, and without disclosing that the affidavits which formed part of that brief were inadmissable under Australian law, the ICAC acted improperly.

“Mr Hanlon maintains that, had the DPP known the true state of affairs, Mr Hanlon should never have been charged.

“The apparent concealment by ICAC officers of what they had done from both the DPP and Mr Hanlon set in train a process which destroyed his career and caused him significant psychological harm.”

Mr Hanlon has always maintained his innocence of allegations he spent $15,000 of taxpayer funds on personal interstate and overseas trips.

Those allegations were thrown out of court in June 2021, resurrected four months later and dropped in November 2022 following revelations about ICAC’s conduct.

In court and under oath, the two ex-investigators conceded they were told their interviews with witnesses in Germany had breached international law and were inadmissable.

They also conceded they did not disclose that knowledge to prosecutors, nor did they disclose evidence that was consistent with Mr Hanlon’s claims of innocence.

In June 2023, ICAC Inspector Phillip Strickland KC found the watchdog’s decision to investigate Mr Hanlon over the allegations was reasonable and appropriate.

However, he also found its institutional failures led to “maladministration” and “substantial mismanagement” in the investigation itself.

Current Commissioner Ann Vanstone accepted the criticism but rejected “persistent falsehoods” constructed by politicians that “demonise” whistleblowers.

Former ICAC Commissioner Bruce Lander. Picture: David Mariuz

On Friday, Mr Selley said both the evidence given in court and Mr Strickland’s findings underpinned the allegations in Mr Hanlon’s pre-action claim.

“(They) revealed that at least one of the ICAC officers knew full well when they were in Germany that what they were doing in interviewing witnesses without the approval of German authorities was improper,” he said.

“They both knew that if they witnessed affidavits in Germany they would be inadmissable in an Australian court, they were directed by the former ICAC to do that anyway.

“The ICAC legal officer had established from inquiries she had made with the Federal Attorney-General’s Office that no evidence could ever be led from any of those witnesses unless and until German authorities approved, and the process to obtain that approval retrospectively might take months if not longer.

“They knew that no steps had been taken to seek that approval – no steps were ever taken to obtain such approval.”

The pre-action claim was raised in parliament late on Thursday by SA-BEST MLC Frank Pangallo.

“It is my understanding that lawyers acting for Mr Hanlon have now launched a significant multimillion dollar claim for damages,” he said.

“This action will place taxpayers at ongoing risk of even more costs, whether or not it is successful.”

He asked Attorney-General Kyam Maher whether the government “will have to cover the legal costs” of Mr Lander and his former staff.”

Mr Maher said he could not speak about “specific claims” or any pre-action applications “before things come to court”.

“For very significant claims, I think it has been the general practice within government at some stage of the proceedings to make the government, through the Attorney-General, aware of them,” he said.

On Friday, Mr Lander said he had “not been made aware of, nor served with” Mr Hanlon’s claim and was therefore “unable to comment”.