Lawyer X probe shut down without charges

Victoria’s worst legal scandal will end with a ‘whimper’ as the office of the special investigator is set to disband after prosecutors failed to lay charges.

Victoria’s office of special investigator will be disbanded after prosecutors refused to lay charges over the Lawyer X scandal, sparking anger over the likely failure of any convictions despite a $125m legal, political and policing investment.

State Attorney-General Jaclyn Symes confirmed the OSI tasked with bringing potential cases against former gangland figures – and police – will fold.

This was after former High Court judge and special investigator Geoffrey Nettle lamented the failure of the Director of Public Prosecutions Kerri Judd to recommend court action over the long-running scandal linked to Melbourne’s underworld.

Melbourne lawyer Nicola Gobbo was a police informant during Melbourne's gangland wars. Ms Gobbo was first recruited in 1995 and worked with police until 2009. Picture: ABC

“Both the special investigator and royal commission implementation monitor, Sir David Carruthers, have recommended the winding up of the OSI – and we have accepted their advice,” Ms Symes said on Tuesday.

“Prosecutorial decisions are a matter for the DPP and it is critical that the Office of the Public Prosecutions operates independently of government and statutory bodies like the OSI.”

Opposition legal affairs spokesman Michael O’Brien slammed the decision as “appalling”, saying it would mean those accused of perverting the course of justice would escape punishment.

“By turning its back on former High Court justice Geoffrey Nettle and closing down the OSI, Labor is giving a free pass to all of those who engaged in what our highest court condemned as ‘reprehensible conduct’,” Mr O’Brien said.

“The worst legal scandal in Victorian history will end with a whimper because a weak Labor government does not want to give the OSI the power to authorise charges.”

Mr O’Brien said the decision would sweep the scandal “under the carpet” and served to protect “rotten lawyers and corrupt cops”.

The state opposition said it had drafted a bill that would give the OSI prosecutorial powers.

Victorian Attorney-General Jaclyn Symes confirms the office of the investigator’s office will wind down.

Gavin Silbert, a former chief crown prosecutor, said the decision on whether to prosecute should be made in the public interest. “I can’t see how it’s not in the public interest for the matter to proceed further,” he said. “I would have thought it was in the public interest for the Nettle recommendations to be followed.”

Mr Nettle had previously threatened to quit as he said the chances of the DPP approving charges he brought forward would be a “waste of time and money”.

The office will wind down its operations with legislation to decommission it to be developed at the same time.

Its operations have been independent of the government, with the office responsible for managing staff, how it exercises its powers and fulfils its duties.

Director of Public Prosecutions Kerri Judd QC. Picture: AAP

A spokesman for Ms Judd declined to comment, referring The Australian to her response to Mr Nettle’s report tabled in parliament last week.

In her response, she said her decision not to prosecute “should be interpreted as nothing other than the results of careful and realistic assessments of the evidence”.

“At no stage did I rule out the prospect of authorising any future prosecution,” she said. In relation to one brief of ­evidence, she said the passage of time would have had a “significant bearing” on the prospects of ­conviction.

The decision to shutter the office comes after years of legal investi­gations costing taxpayers an estimated $125m and severely embarrassing Victoria Police and successive governments.

Opposition legal affairs spokesman Michael O'Brien. Picture: AAP

Mr Nettle tabled a special report in parliament last week, revealing that Ms Judd had rejected the laying of criminal charges.

This was despite his ­office recommending key players be prosecuted for offences including misconduct in public office.

The saga began during Melbourne’s gangland wars in the 1990s and early 2000s when 36 people were killed and police struggled to end the violence. It became a law and order issue for governments with victims executed across the city.

Tony Mokbel leaves Melbourne Magistrates Court with his lawyer, Nicola Gobbo.

As Victoria Police struggled to deal with the fallout, they agreed to a deal in which barrister Nicola Gobbo, who represented many gangland figures, turned supergrass on clients such as convicted drug lord Tony Mokbel.

This decision subsequently imperilled convictions.

In 2019, Margaret McMurdo, leading the Lawyer X royal commission, said Victoria Police had probably wasted years of work and millions of dollars by using Ms Gobbo as an informant.

The OSI was created by the Lawyer X royal commission to investigate laying criminal charges against key players but was not empowered to lay charges. It needed the DPP to do so on its behalf but the prosecution decided too much time had elapsed.