Corruption watchdog examines Brittany Higgins compo payout

The national anti-corruption watchdog is examining a complaint about Brittany Higgins’ compensation payout.

Brittany Higgins outside the Federal Court in Sydney. Picture: NCA NewsWire / Jeremy Piper

The national anti-corruption watchdog is now examining a complaint by former Liberal minister Linda Reynolds against Attorney-General Mark Dreyfus over his handling of the $2.3 million compensation payment made to Brittany Higgins, to determine if an investigation should be launched.

The development comes as lawyers question claims made by Ms Higgins that the Commonwealth had admitted it breached its duty of care to her when it paid the multimillion-dollar settlement.

Under cross examination on Tuesday in Bruce Lehrmann’s defamation case, Ms Higgins said the Commonwealth “came to an agreement that a failure of a duty of care was made, and they did pay me.”

“The commonwealth admitted that they breached their duty of care and that they didn’t go through proper processes, so that’s actually why they settled with me,” Ms Higgins told the court.

Several lawyers approached by The Australian said it was highly unusual for a party such as the Commonwealth to admit liability in circumstances where it was seeking to prevent a potential litigant bringing a claim for personal injuries.

On Wednesday the deed of settlement was made available to the parties in the defamation case but not to the public or media.

Bruce Lehrmann pictured as he arrives at court with counsel Steve Whybrow SC. Picture: NCA NewsWire / Damian Shaw

The Australian asked Attorney-General Mark Dreyfus whether he could confirm that the Commonwealth admitted liability in the case, but received no response before deadline.

Mr Dreyfus has previously declined to answer multiple questions from The Australian about the settlement, saying only: “The parties have agreed that the terms of the settlement be confidential. All claims against the commonwealth are handled in accordance with the Legal Services Directions 2017.”

However, several questions did not seek information about the confidential content of the settlement, including whether Mr Dreyfus had any input into the settlement, and why Senator Reynolds was effectively barred from attending the one-day mediation that led to the payment.

Mr Dreyfus threatened to tear up an agreement to cover Senator Reynolds’ legal fees in the dispute if she turned up at the mediation, meaning that Ms Higgins’ claims of mistreatment in Senator Reynolds’ office were not contested.

Senator Reynolds lodged her submission to the National Anti-Corruption Commission after issuing a public statement in June highlighting her concerns about the “unusually swift” mediation and Mr Dreyfus’s role in the process.

The NACC has the power to investigate any conduct by a minister that constitutes a breach of public trust or an abuse of their office. The Commission declined to answer questions from The Australian.

Lisa Wilkinson and her legal counsel Sue Chrysanthou SC. Picture: NCA NewsWire / Damian Shaw

Senator Reynolds declined to provide details of her referral to the NACC, but flagged her intention to refer the issue to the NACC in June, claiming Mr Dreyfus, finance minister Katy Gallagher, and the prime minister, Anthony Albanese, had a “potential conflict of interest” based on their previous public statements about the matter.

“This raises further questions about the fairness, transparency and impartiality of the entire process,” she said.

Text messages between Higgins and her boyfriend David Sharaz revealed by The Australian show the pair ­planned to directly enlist the help of senior Labor ­figures to pursue Ms Higgins’ rape allegation and her claim the Coalition government covered it up.

The messages revealed Ms Higgins’ partner David Sharaz was in contact with Mr Albanese, and that both Ms Higgins and Mr Sharaz had dozens of interactions with various other Labor MPs, some before Ms Higgins went public with her rape allegations.

The texts reveal Mr Sharaz, a former journalist, boasting of his special relationship with now-­Finance Minister Katy Gallagher.

Senator Linda Reynolds in the Senate Chamber at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

On February 11, 2021, four days before Ms Higgins appeared on The Project to detail her claims, Mr Sharaz messaged her: “Katy is going to come to me with some questions you need to prepare for … She’s really invested now ha ha.”

Later Mr Sharaz wrote: “She’s an old friend. We opened a chair together! So you can trust her.”

Later that day Mr Sharaz told Ms Higgins: “Katy Gallagher messaged me. She’s angry and wants to help. She’s got the context. Says they knew something was wrong because they fired Bruce and not you. They avoided a scandal.”

Senator Katy Gallagher during Senate Question Time Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

Senator Gallagher was previously asked in Parliament about the state of her knowledge before the story broke.

In June 2021, Senator Gallagher expressed outrage when Senator Reynolds claimed she had been tipped off that Labor had been aware of the allegations before they became public and planned to use them.

“No-one had any knowledge. How dare you,’’ Senator Gallagher said. “It’s all about protecting yourself.

Senator Gallagher has vigorously denied any involvement in the Commonwealth’s settlement with Ms Higgins.