The National Anti-Corruption Commission (NACC) says that a Tourism Australia scandal may involve serious corrupt conduct.

The NACC has raised significant concerns about a $137,441 travel breach by three Tourism Australia staff members, potentially involving “corrupt conduct that is serious or systemic”. 

The NACC criticised Tourism Australia for delaying the report of the breach for months, stating that such suspicions should be reported immediately.

In a letter dated June 5, Commissioner Paul Brereton informed Tourism Australia's managing director Phillipa Harrison that the conduct in question “could involve a breach of public trust and/or an abuse of office”. 

He emphasised the gravity of the situation, saying; “I am of the opinion that the issues could involve corrupt conduct that is serious or systemic”. 

Although the NACC chose not to pursue the matter further, it has been referred to the Australian Federal Police (AFP), which is currently investigating. 

Brereton's letter, made public by the Senate last week, highlighted that Tourism Australia had been aware of the travel breach since at least October 20, 2023, but did not report it to the NACC until January 24, 2024.

Brereton reiterated the obligations under the National Anti-Corruption Commission Act, stressing that agency heads must refer potential corruption issues to the commission “as soon as reasonably practicable after becoming aware of the issue”.

Tourism Australia's delay in reporting was attributed to the termination of the employment of those involved and the reimbursement of the government. 

In the intervening months, the agency engaged Deloitte to conduct a thorough forensic audit dating back to 2020, which did not identify any further breaches.

Prior to Brereton’s letter, Phillipa Harrison appeared before a Senate estimates committee, citing NACC advice as the reason she could not provide further details on the involved individuals. 

“The NACC have advised me that I’m unable to provide further details on the roles and the people involved until they have finished their investigations,” she stated.

However, an email from Mark Craig, Tourism Australia's executive general manager for corporate services, revealed internal frustrations over the handling of the Senate committee questioning. 

He noted that some senators were dissatisfied with the lack of answers, given the ongoing NACC investigation.

Brereton expressed concern over Harrison’s Senate testimony, indicating that it might have misled the committee regarding the NACC's advice. 

He clarified in a subsequent letter to Harrison that the NACC's position was that it does not comment on specific matters under investigation and that agencies should indicate it would be inappropriate to comment further, rather than suggesting they were directed not to provide information.

Harrison took steps to correct the record, clarifying the scope of the forensic audit and the nature of the NACC's advice. 

She communicated these corrections to the Senate committee on June 13.