ICAC boss accepts criticism after botched John Hanlon case – but not ‘persistent falsehoods’

An SA MP has label the ICAC boss’s response to criticism over the botched John Hanlon case as an “extraordinary rant”, saying no one had been held accountable.

ICAC Commissioner Ann Vanstone says she accepts criticism of her office over the aborted prosecution of ex-Renewal SA boss John Hanlon – but not the “persistent falsehoods” constructed by politicians that “demonise” whistleblowers.

In a statement on Tuesday, Ms Vanstone said she welcomed and accepted recommendations that ICAC change its systems and processes in the wake of the highly publicised, failed case.

She said both the downfall of the Hanlon case and the resultant damage to ICAC’s reputation were “regrettable” – but stressed they did not justify some of the criticisms levelled against it.

She said those “unfair” criticisms also had the potential to “demonise” whistleblowers, which could have “a chilling effect on those who want to speak up”.

Public attacks upon the whistleblowers as “vexatious underlings” making “fabricated and false” claims were themselves a “false narrative”, she said.

“It was never clear to me why individuals in the media and the parliament constructed a largely false narrative around this prosecution and subsequent prosecution, when they had not had the benefit of hearing the evidence,” she said.

“It is even less clear to me now why that narrative continues … I am inclined to assume those individuals have not read the report, because the only alternative is that they are wilfully misleading the public.

“I would suggest that those who have been complicit in maligning whistleblowers for meeting their obligation to report and uphold the integrity of public administration should stop.”

Former Renewal SA boss John Hanlon outside the District Court with his daughter Millie Hanlon and wife Jenny after the DPP withdrew all charges against him. Picture: NCA NewsWire / Brenton Edwards

In June 2021, the Adelaide Magistrates Court threw out allegations Mr Hanlon had spent $15,000 of taxpayers funds on personal interstate and overseas trips.

Prosecutors relaid the charges in the District Court but, in November 2022, dropped them on the first day of trial amid revelations about ICAC’s investigation.

Mr Hanlon, who denied the allegations throughout his prosecution, was reimbursed $450,000 spent on legal fees.

In June, ICAC Inspector Phillip Strickland KC found the watchdog’s investigation into Mr Hanlon was reasonable and appropriate.

However, he also found it led to “maladministration” and “substantial mismanagement” through institutional failures.

Independent Commissioner Against Corruption Ann Vanstone. Picture: Tony Lewis

Those failures included breaches of international law and German sovereignty, and a failure to disclose to defence counsel evidence consistent with Mr Hanlon’s claims of innocence prior to his aborted trial.

He found investigators – two of whom took a weekend off in Hamburg – had been “reckless”, but there was no evidence of cultural problems, bias or prejudgment within ICAC.

Mr Strickland recommended a number of systemic changes – on Tuesday, Ms Vanstone said she accepted those recommendations “in principle”.

She said several of those changes had already been made, prior to Mr Strickland’s findings, as a result of her own review of the Hanlon case.

The weekend in Hamburg, she said, was paid for by the investigators and not funded by taxpayer dollars.

“In essence, the substantive errors in the investigation of Mr Hanlon stemmed from inadequate planning for a trip to Germany by investigators,” she said.

“The failures that came thereafter were serious … clearly, some aspects of the conduct of officers involved in the investigation were unacceptable.

“As a result, a matter that should have been adjudicated at trial has not been … that is regrettable.

“There are fair criticisms of the Commission made in Mr Strickland’s report … I do not step away from those.

“I also think it important that I address the ill-formed criticisms and falsehoods that continue to be perpetuated.”

Frank Pangallo MLC at Parliament House. Picture NCA NewsWire / Emma Brasier

Speaking in parliament, SA-BEST MLC Frank Pangallo labelled Commissioner Vanstone’s response “an extraordinary rant” and a “backhanded swipe” at persons including himself.

“I am the parliamentarian who has been consistently outspoken about ICAC investigations ... I can only conclude that I am the prime individual she is talking about who is spreading lies and misinformation,” he said.

“My motivation has, and will continue to be, exposing and advocating miscarriages of justice and sometimes that leads you to the most sensitive and guarded echelons of our institutions, which may find that intrusion uncomfortable.

“I make no apologies for trying to pursue truth and justice ... getting there is not easy nor perfect ... much of what has happened resulting in ICAC having to clean up its act would not have been possible had I not raised it in parliament.”

Mr Pangallo said he felt no one had been held accountable for the Hanlon prosecution aside from ICAC as an agency - a conclusion he said “defies credulity”.

“Demonising whistleblowers is both unfair and unhelpful and it has a chilling effect on those who want to speak up, (Ms Vanstone) says,” he said.

“Too right - just tell that to Richard Boyle, David McBride and Julian Assange.

“And what about me? I consider myself a whistleblower here, and I have been demonised too.”

He also told parliament he “suspected” the Hanlon matter was “far from over”, telling those listening to “stay tuned”.