Labor agrees to ICAC recommendations after mystery minister bombshell

Political leaders in SA would face new rules over conflicts of interest under proposed changes in the wake of this week’s shock ICAC revelations.

South Australia’s political leaders would need to declare any conflicts of interest when passing on details of unsolicited business bids for taxpayer contracts, under proposed new rules.

The state’s anti-corruption watchdog on Tuesday revealed how a senior Minister was investigated in secret over claims he used his position to arrange a $3m-a-year government contract for a personal associate.

Independent Commissioner Against Corruption Ann Vanstone warned it risked ministerial “vulnerability”.

She did not disclose the Cabinet minister’s identity, or if they were current or former members of Cabinet.

Ms Vanstone also declined to disclose to The Advertiser if the Minister was a Labor or Liberal MP.

In a ministerial statement to parliament on Wednesday, Treasurer Stephen Mullighan said he had agreed to Ms Vanstone’s recommendation to review the government’s unsolicited proposals schedule.

He told MPs this would “ensure conflicts of interest must be declared and managed during the assessment process”.

Premier Peter Malinauskas is not seeking a review of ICAC legislation following a probe into a senior minister. Picture: Gary Ramage

The review, headed by Treasury boss Rick Persse and the chief executive of the Department of Premier and Cabinet Damien Walker, would also overhaul how unsolicited proposals are assessed.

Ms Vanstone wanted Cabinet Circular 038, as well as public authority procurement rules, tightened.

An unsolicited proposal is when a business or a not-for-profit organisation approaches the government with a proposal that hasn’t formally been requested. Acting on Ms Vanstone’s recommendations, Mr Mullighan said it would “improve agency practices’’.

All changes would be published and public officers trained.

“The government accepts the recommendations in principle,” he said.

The review was specifically directed to Procurement Services SA.

This agency, part of the Department of Treasury and Finance, deals with all taxpayer-funded contracts.

Amid fevered speculation as to the identity of the male Minister, Premier Peter Malinauskas on Wednesday revealed that all of his 14 Cabinet ministers had denied any knowledge of the ICAC investigation.

He met with Ms Vanstone on Monday, the day before she published her report, during which she declined to reveal anything about the minister’s identity. He said his questions to Cabinet were based on Crown law advice.

An Opposition spokesman said the Liberal party was “confident” none of its MPs were involved in the investigation.

The Premier said the government had no plans to change any of ICAC’s secrecy.

The government has been reviewing the ministerial code of conduct – the first in 20 years – but this has been delayed over issues with what is the definition of a conflict of interest.

Originally published as Labor agrees to ICAC recommendations after mystery minister bombshell