Mike ­Pezzullo NACC referral flagged

Labor has signalled a potential referral of stood-aside Home Affairs secretary Michael Pezzullo to the National Anti-Corruption Commission.

Stood-aside Home Affairs secretary Michael Pezzullo. Picture: Gary Ramage / NCA NewsWire

Labor has signalled a potential referral of stood-aside Home ­Affairs secretary Michael ­Pezzullo to the National Anti-Corruption Commission, zeroing in on his personal approval of a contract to a company linked to Liberal Party powerbroker Scott Briggs.

Mr Pezzullo is facing an Australian Public Service Commission probe over thousands of leaked messages with Mr Briggs, revealing the senior bureaucrat sought to influence political decisions while undermining cabinet ministers and public service enemies.

Government senator Raff Ciccone asked the department’s acting secretary, Stephanie Foster, in a Senate estimates hearing on Monday whether Mr Pez­zullo disclosed any conflicts of interest in relation to Mr Briggs.

Senator Ciccone noted previous evidence that Mr Pezzullo ticked off an $80,000, two-month contract with DPG advisory – of which Mr Briggs was director – to advance its proposal to set up a quarantine service during the Covid pandemic.

As the time, Mr Pezzullo told one of his officers: “I’m taking this initiative as I’ve come to the judgment that absent some catalysing action by the department, there will be continuing to be discussions within business, the agriculture sector and uni­versities, without a first mover appearing.”

Mr Briggs set up a company after the contract was signed, Quarantine Services Australia, with himself as sole director.

”Should Mr Pezzullo have declared his relationship with Mr Briggs before he had handed him a $10,000 a week contract to set up his own multimillion-dollar business?” Senator Ciccone asked.

Ms Foster said she was unable to respond, as Mr Pezzullo was facing an APSC investigation.

Asked by Senator Ciccone whether she had an obligation to report any such matters to the NACC, Ms Foster said: “I have an obligation to refer (to the NACC) where I have a reasonable suspicion of (corruption).”

She declined to comment further while the inquiry into Mr Pezzullo’s conduct was under way.

Cabinet minister Murray Watt, representing Home Affairs Minister Clare O’Neil, was unable to say whether the APSC investigation into Mr Pezzullo would be made public when it was concluded.

Ms Foster confirmed Mr Pezzullo had been stood aside on full pay. She said as acting secretary, she was receiving Mr Pezzullo’s base salary of nearly $780,000.

Ms Foster, favoured to take over from Mr Pezzullo if he is sacked, said the sidelining of the secretary had been a “significant shock” for the department.

She paid tribute to Home ­Affairs’ 15,000 staff “who have pulled together in extraordinary circumstances to deliver critical functions without missing a beat … They have been simply fabulous.”

The Senate’s legal and constitutional affairs committee heard an asylum boat was intercepted last month, with its 11 passengers sent to Nauru.