The Independent Commission Against Corruption has released its long-awaited report into government water management in NSW and will not pursue a public inquiry.
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The 'Investigation into complains of corruption in the management of water in NSW and systemic non-compliance with the Water Management Act 2000' report includes 15 recommendations to prevent corruption.
The ICAC said it wasn't in the "public interest" to conduct a public inquiry, highlighting the amount of evidence gathered already, the cost and reputational risk to witnesses.
The corruption watchdog said it looked at multiple allegations made over a decade in two related investigations about complaints of corruption focused on the Barwon-Darling area of the Murray-Darling Basin.
There were 13 compulsory examinations and 75 people were interviewed or provided statements to the ICAC.
"Ultimately the Commission was not satisfied in relation to any of the matters it investigated that the evidence established that any person had engaged in corrupt conduct for the purposes of the Independent Commission Against Corruption Act 1988," the ICAC said in a statement.
"The report notes that at a policy level, the investigation found that the development and implementation of the 2012 Barwon-Darling Water Sharing Plan represented a failure to adhere to the priorities set out in the (Water Management Act).
"Specific failures in the administrative arrangements concerning water regulation and compliance also created an atmosphere that was overly favourable to irrigators.
"This was largely due to chronic underfunding, organisational dysfunction and a lack of commitment to compliance."
The ICAC's recommendations deal with;
- Lengthy history of failure in giving proper and full effect to the objects, principles and duties of the Water Management Act, and its priorities for water sharing
- Failure to fully implement water sharing plans and ensure they are audited
- Need to fund independent scientific audits to determine the ecological health of rivers
- Lack of transparency, balance and fairness in consultation processes undertaken by water agencies in relation to external stakeholders
- Sidelining of public officials undertaking environmental roles within the NSW Government
- Control weaknesses in the classification and handling of confidential and sensitive information
- Flaws in the recruitment procedures used to engage a director of intergovernmental strategic stakeholder relations at DPI-W
- Regulatory failures in the state's water market
- Lack of transparency and accountability in water account information.
The 164 page report can be found on the ICAC's website at www.icac.nsw.gov.au.