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New South Wale es
Crime CComm mission
Annuual Re eport t
20112–20 013

























New South Wales Crime Commission
Address: 453–463 Kent Street
Sydney NSW 2000
Postal: PO Box Q566
QVB Post Office
Sydney NSW 1230
Email: crimecommission@crimecommission.nsw.gov.au
Website: www.crimecommission.nsw.gov.au
DX: DX 13018 Market Street, Sydney
Telephone: +61 2 9269 3888
Facsimile: +61 2 9269 3809
Reception Hours: 7:30 am to 6:30 pm, Monday to Friday































25 October 2013
The Hon. Michael Gallacher MLC
Minister for Police and Emergency Services
Dear Minister,
Annual Report for 2012–2013
Pursuant to ss. 11A and 12 of the Annual Reports (Departments) Act 1985 (‘the Act’), I
submit to you this Commission’s Annual Report for 2012–2013 (in accordance with s. 9 of
the Act) and Report of Operations (in accordance with ss. 10 and 11 of the Act). In
accordance with s. 6 of the Act, the two reports are included within the one document (‘the
Report’). The Report is being submitted to you for presentation to Parliament.
In accordance with s. 82 of the Crime Commission Act 2012, the report has also been
furnished to the New South Wales Crime Commission Management Committee. Section 82
of the Crime Commission Act 1985 provides for that Committee to transmit the Report to you
with such comments on the Report as it sees fit.
Yours sincerely,
Peter Hastings
Commissioner
Copy: The Hon. Michael Baird MP
Treasurer







4 Octob ber 2013


The Neew South W ales Crime Commissioon Managem ment Comm mittee


Dear Coommittee MMembers,

Annual RReport for 2 2012–2013

On behhalf of the CCommission n and in acccordance w with s. 82 o of the Crimme Commiss sion Act
2012, I furnish to you the Co ommission’ss Annual R Report for th he year endded 30 J un ne 2013.
Sectionn 82 providees for you to o transmit thhe Report to o the Minist ter with suchh comment ts on the
Report as you see fit.

The Reeport also seerves to sat tisfy the reqquirements of the Annu ual Reportss (Departme ents) Act
1985.



Yours si incerely,



Peter H Hastings
Comm missioner






 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Introduction ........................................................................................................................... 1
Constitution of the Commission.......................................................................................... 1
Functions, aims and objectives of the Commission ........................................................... 1
Responsible Minister .......................................................................................................... 2
Management Committee .................................................................................................... 3
Membership of the Management Committee................................................................. 3
Functions of the Management Committee ..................................................................... 3
This Annual Report ............................................................................................................. 4
Year in review..................................................................................................................... 5
Key measures of, and trends in, the results of the Commission’s work ............................. 7
Management of the Commission ......................................................................................... 9
Organisational structure ..................................................................................................... 9
The Commissioner and Assistant Commissioners ............................................................. 9
Mr Peter Hastings QC .................................................................................................... 9
Mr Peter Singleton......................................................................................................... 9
Mr Robert Inkster OAM APM ......................................................................................... 9
Management Team ............................................................................................................ 9
Commission personnel ....................................................................................................... 9
Management projects and issues ..................................................................................... 11
Information and communications technology .............................................................. 11
Policy review................................................................................................................ 11
Records management ................................................................................................. 11
Building management.................................................................................................. 11
Complaint handling........................................................................................................... 12
Public Interest Disclosures .......................................................................................... 12
Other complaints.......................................................................................................... 13
Reporting complaints to the Inspector of the Commission .......................................... 13
Reporting complaints to the Police Integrity Commission ............................................ 14
The Legal Context ............................................................................................................... 15
Crime Commission Act 2012 and the NSW Crime Commission Act 1985....................... 15
Criminal Assets Recovery Act 1990 ................................................................................. 17
Other laws on criminal investigations ............................................................................... 21
Significant judicial cases .................................................................................................. 21
Confiscation issues ...................................................................................................... 21
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Criminal investigation issues ....................................................................................... 22
Challenges to Commission determinations ...................................................................... 23
Other significant legislative changes ................................................................................ 23
Director of Public Prosecutions Act 1986 .................................................................... 23
Law Enforcement (Controlled Operations) Act 1997 ................................................... 24
Oaths Act 1900 and Oaths Regulation 2011 ............................................................... 24
Surveillance Devices Act 2007 .................................................................................... 24
Nature and Scope of Organised Crime ............................................................................. 25
Recommendation for Legislative Change ........................................................................ 29
Criminal Investigations ...................................................................................................... 30
Management of investigations .......................................................................................... 30
Participation in joint task forces ........................................................................................ 30
J oint Counter Terrorism Team ..................................................................................... 30
J oint Organised Crime Group...................................................................................... 31
Polaris Task Force....................................................................................................... 31
Use of statutory powers and authority .............................................................................. 31
New South Wales Crime Commission Act 1985.......................................................... 32
Crime Commission Act 2012 ....................................................................................... 32
Law Enforcement (Controlled Operations Act) 1997 ................................................... 32
Law Enforcement (Powers and Responsibilities) Act 2002 ......................................... 32
Law Enforcement and National Security (Assumed Identities) Act 2010 ..................... 32
Surveillance Devices Act 2007 .................................................................................... 33
Telecommunications (Interception and Access) Act 1979 (Cth) .................................. 33
Results of investigations ................................................................................................... 34
Arrests and charges ..................................................................................................... 34
Seizures....................................................................................................................... 37
Case studies..................................................................................................................... 44
Curban/Devine ............................................................................................................. 44
Eltham/Alistair.............................................................................................................. 44
Financial Investigations: Criminal Asset Confiscation ................................................... 46
Role of financial investigation – relationship with criminal investigation........................... 46
The confiscation process.................................................................................................. 46
Use of statutory information gathering powers ................................................................. 48
Referrals, commencements and restraining orders ......................................................... 49
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Living and legal expenses ................................................................................................ 51
Confiscation orders .......................................................................................................... 51
‘Estimated realisable value’ of confiscation orders ........................................................... 53
Exclusion orders and appeals .......................................................................................... 54
Costs ................................................................................................................................ 55
Comparisons with previous two years.............................................................................. 56
Sharing with other jurisdictions......................................................................................... 56
Case study ....................................................................................................................... 57
Matter of Mr G.............................................................................................................. 57
Dissemination of Intelligence and Information ................................................................ 60
Accountability and Scrutiny of the Commission ............................................................. 61
Governance ...................................................................................................................... 61
Ethics Committee, Code of Conduct and ethical culture .................................................. 62
Internal audit and risk management ................................................................................. 62
Other areas of involvement for the Internal Audit and Risk Committee....................... 64
External audit ................................................................................................................... 64
NSW Ombudsman ....................................................................................................... 64
Commonwealth Ombudsman ...................................................................................... 64
External oversight of the Commission.............................................................................. 65
Inspector of the Crime Commission ............................................................................. 65
Parliamentary J oint Committee on the Office of the Ombudsman, the Police Integrity
Commission and the Crime Commission..................................................................... 66
Police Integrity Commission ........................................................................................ 66
Other Reporting Issues ...................................................................................................... 68
Agreements with the Community Relations Commission................................................. 68
Commission publications .................................................................................................. 68
Consultants ...................................................................................................................... 68
Exemptions from reporting obligations ............................................................................. 68
Privacy .............................................................................................................................. 69
Public access to government information ......................................................................... 69
Financial matters .............................................................................................................. 70
Account payment performance.................................................................................... 70
Credit card certification................................................................................................ 72
Grants to non-government community organisations .................................................. 72
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Insurance activities .................................................................................................... 72
Land disposal............................................................................................................. 72
Overseas travel.......................................................................................................... 72
Purchase of major assets........................................................................................... 72
Compliance Index ............................................................................................................. 73
Audited Financial Statements .......................................................................................... 76
Appendices
Appendix A: Management Committee Confiscation Guidelines 129
Appendix B: Organisation Chart 132
Appendix C: Public Interest Disclosure Act 1994 –Section 31 Report 133
Appendix D: Public Interest Disclosure Act 1994 –Section 6CA Report 136
Appendix E: Law Enforcement (Powers and Responsibilities) Act 2002
Annual Report 139
Appendix F: Law Enforcement and National Security (Assumed Identities)
Act 2010 Annual Report 142
Appendix G: Surveillance Devices Act 2006 Annual Report 144
Appendix H: Internal Audit and Risk Management Attestation 146
Appendix I: Government Information (Public Access) Act 2009 Annual Report 148
Index ................................................................................................................................ 153
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Glossary and Abbreviations
1985 Commission Act New South Wales Crime Commission Act 1985
2012 Commission Act Crime Commission Act 2012
ACBPS Australia Customs and Border Protection Service
ACC Australian Crime Commission
ACC Act Australian Crime Commission Act 2002 (Cth)
AFO Asset forfeiture order
AFP Australian Federal Police
Annual Reports Act Annual Reports (Departments) Act 1985
Annual Reports Regulation Annual Reports (Departments) Regulation 2010
ASIC Aviation Security Identification Card
ASIO Australian Security Intelligence Organisation
ATO Australian Taxation Office
ATS Amphetamine-type stimulants
Austrac Australian Transaction Reports and Analysis Centre
CAR Act Criminal Assets Recovery Act 1990
CDPP Commonwealth Director of Public Prosecutions
CID Criminal Investigation Division
CLR Commonwealth Law Reports
Cook’s case NSW Crime Commission v. Cook [2011] NSWSC 1348
(a Supreme Court judgment)
CPA Confiscated Proceeds Account
Cth Commonwealth
DPP Director of Public Prosecutions for NSW
ERM Register Enterprise Risk Management Register
FID Financial Investigation Division
FTE full time equivalent
GIPA Act Government Information (Public Access) Act 2009
GPNSW Government Property NSW
IARC Internal Audit and Risk Committee
IARM Policy Internal Audit and Risk Management Policy for the NSW
Public Sector
ICAC Independent Commission Against Corruption
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ICT information and communication technology
ITPP Independent third-party provider
J ACG J oint Asian Crime Group
J CTT NSW J oint Counter Terrorism Team
J OCG J oint Organised Crime Group
LECO Act Law Enforcement (Controlled Operations) Act 1997
MDMA 3,4-methylenedioxy-N-methylamphetamine (ecstasy)
MSIC Maritime Security Identification Card
NSW Police NSW Police Force
OC(T)S NSW Police Organised Crime (Targeting) Squad
OCD Strategy Organised Crime Disruption Strategy
p. page
PAO Proceeds assessment orders
par. paragraph
PJ C Parliamentary J oint Committee on the Office of the
Ombudsman, the Police Integrity Commission and the Crime
Commission
Patten Inquiry Special Commission of Inquiry into the New South Wales
Crime Commission
Patten Report Report of the Special Commission of Inquiry into the New
South Wales Crime Commission
PIC Police Integrity Commission
PIC Act Police Integrity Commission Act 1996
PID Act Public Interest Disclosures Act 1994
PSE&M Act Public Sector Employment and Management Act 2002
reporting period 1 J uly 2011 to 30 J une 2012
s. section (of an Act of Parliament)
Sch. Schedule
SCRA Serious Crime Related Activity
SD Act Surveillance Devices Act 2007
ss. sections (of an Act of Parliament)
subs. subsection (of an Act of Parliament)
subss. subsections (of an Act of Parliament)
The Commission NSW Crime Commission
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TIA Act Telecommunications (Interception and Access) Act 1979 (Cth)
UWO Unexplained wealth orders
WH&S Work health and safety
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INTRODUCTION
The NSW Crime Commission (‘the Commission’) underwent substantial legislative change in
2012. The Crime Commission Act 2012 (‘the 2012 Commission Act’) repealed and replaced
the New South Wales Crime Commission Act 1985 (‘the 1985 Commission Act’) with effect
from 5 October 2012. The information below relates to the 2012 Commission Act.
Constitution of the Commission
Under the 1985 Commission Act, the Commission was constituted by its Commissioner and
any Assistant Commissioners. Under the 2012 Commission Act, the Commission is
constituted as a corporation. At the beginning of the reporting period, the Commission
comprised Mr Peter Singleton as Commissioner. On 5 November 2012, Mr Peter Hastings
QC became the Commissioner.
Functions, aims and objectives of the Commission
The object of the 2012 Commission Act is to reduce the incidence of organised and other
serious crime.
The principal functions of the Commission are:
  to investigate matters relating to a relevant criminal activity and serious crime concerns
referred to the Commission by the NSW Crime Commission Management Committee
(‘the Management Committee’) for investigation;
  to assemble evidence that would be admissible in the prosecution of a person for a
relevant offence arising out of any such matters and to furnish it to the Director of
Public Prosecutions (‘the DPP’);
  to furnish evidence obtained in the course of its investigations (being evidence that
would be admissible in the prosecution of a person for an indictable offence against
the law of the Commonwealth or another State or Territory) to the Attorney General or
to the appropriate authority in the jurisdiction concerned;
  to reinvestigate matters relating to any criminal activity that were the subject of a police
inquiry (being an inquiry referred for review to the Commission by the Management
Committee) and to furnish its findings to the Management Committee together with any
recommendation as to action the Commission considers should be taken in relation to
those findings;
  to furnish, in accordance with the 2012 Commission Act, reports relating to organised
and other crime, which include, where appropriate, recommendations for legislative or
regulatory change;
  to provide investigatory, technological and analytical services to such persons or
bodies as the Commission thinks fit; and
  with the approval of the Management Committee, to work in co-operation with such
persons or authorities of the Commonwealth, the State or another State or Territory
(including any task force and any member of a task force) as the Commission
considers appropriate.
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The Commission may:
  furnish any information the Commission obtains relating to the exercise of the
functions of a government agency, or a report on that information, to the relevant
Minister and make such recommendations relating to the exercise of the functions of
the government agency, as the Commission considers appropriate;
  furnish any information relating to the conduct of a member of a government agency,
in his or her capacity as such, that the Commission obtains, or a report on that
information, to the head of that agency or (if the member is the head of the agency) to
the relevant Minister and make such recommendations relating to the conduct of the
member as the Commission considers appropriate;
  in accordance with any guidelines furnished by the Management Committee,
disseminate intelligence and information to such persons or bodies of the
Commonwealth, the State or another State or Territory (including any task force and
any member of a task force) as the Commission thinks appropriate; and
  co-operate and consult with such persons or bodies as the Management Committee
thinks appropriate.
The Commission also has functions conferred upon it by the Criminal Assets Recovery Act
1990 (‘the CAR Act’), as described more fully later in this Report.
Mr Singleton and delegated staff members exercised the functions of the Commission until
4 November 2012. From 5 November 2012, Mr Hastings, Mr Singleton, Mr Inkster (from
17 December 2012) and delegated staff members exercised the functions of the
Commission. Other functions are also conferred by, and delegated pursuant to, other
legislation.
The Commission aims to discharge its functions in a lawful, ethical, economical and effective
way. The Commission has a Corporate Plan that supports the Commission in achieving its
aims. The Corporate Plan has four objectives:
1.   to identify high level organised crime figures and their associates, and to conduct
effective criminal investigations with a view to apprehension of those persons;
2.   to identify persons who have gained substantial financial benefit from criminal
activities; to identify the benefits acquired and confiscate assets, returning the
proceeds to the Crown;
3.   to carry out investigations using the most advanced technological facilities; and
4.   to administer the 2012 Commission Act and the CAR Act effectively, while managing
the organisation responsibly and equitably, and use public resources for maximum
public benefit.
These aims and objectives fall within Goal 16 of NSW 2021: to prevent and reduce the level
of crime.
Responsible Minister
Administration of the 1985 Commission Act and the 2012 Commission Act was, throughout
the reporting period, assigned to the Minister for Police and Emergency Services, the Hon.
Michael Gallacher MLC.
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Management Committee
Membership of the Management Committee
The 1985 Commission Act and the 2012 Commission Act constituted the Management
Committee. During the reporting period, the Management Committee comprised:
  the Minister for Police and Emergency Services, the Hon. Michael Gallacher MLC
(presiding member until 4 November 2012);
  Mr D Patten (the independent chairperson from 5 November 2012);
  the Commissioner of Police, Mr Andrew Scipione APM;
  the Chair of the Board of the Australian Crime Commission (‘ACC’), Mr Tony Negus
APM;
  Mr Hastings (from 5 November 2012);
  Mr Singleton (until 4 November 2012);
  the Chief Executive Officer of the Ministry for Police and Emergency Services, Mr Les
Tree (between 5 October 2012 and 5 April 2013); and
  the Acting Chief Executive Officer of the Ministry for Police and Emergency Services,
Ms Mary-Louise Battilana (from 6 April 2013).
During the reporting period, the Management Committee met on 3 J uly 2012, 13 August,
2012, 25 September 2012, 11 December 2012, 5 February 2013, 12 March 2013, 16 April
2013 and 14 May 2013.
Functions of the Management Committee
The functions of the Management Committee are:
  to refer, by written notice, matters relating to relevant criminal activities to the
Commission for investigation;
  to refer, by written notice, to the Commission, for reinvestigation police inquiries into
matters relating to any criminal activities;
  to refer, by written notice, matters relating to serious crime concerns to the
Commission for investigation;
  to make arrangement for task forces to assist the Commission to exercise its functions;
  to approve the Commission to work in co-operation with such persons or authorities of
the Commonwealth, the State or another State or Territory, including any task force or
any member of a task force, as the Commission considers appropriate;
  to review and monitor generally the work of the Commission; and
  to makes decisions on when the Commission should co-operate and consult with other
bodies and persons.
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The Management Committee may also:
  give directions and furnish guidelines to the Commission with respect to the exercise
of its functions; and
  give directions and furnish guidelines to the Commission with respect to the internal
management of the Commission.
The Commission must comply with directions or guidelines given by the Management
Committee.
On 5 February 2013, the Management Committee furnished guidelines to the Commission in
respect of the settlement of confiscation proceedings. These guidelines can be found at
Appendix A to this report and on the Commission’s website.
During the reporting period, the Management Committee referred 12 new matters to the
Commission for investigation. The references were given the following code-names:
Ilford Garra Hilldale Connecticut
Lapstone Arkansas Kamarah Yallah
Milperra Oranmeir Neville Queanbeyan
In addition, the Management Committee authorised the renewal of 22 existing references
and authorised the Commission to work in co-operation with: the NSW J oint Counter
Terrorism Team (‘J CTT’), the J oint Organised Crime Group (‘J OCG’), the Polaris Task
Force, the NSW Police Organised Crime (Targeting) Squad (‘OC(T)S’), and Strike Force
Earp.
This Annual Report
Both the 2012 Commission Act and the Annual Reports (Departments) Act 1985 (‘the Annual
Reports Act’) require the Commission to report annually. The requirements are cumulative.
The Annual Reports Act requires the Commission to prepare an Annual Report and submit it
to the Minister (with a copy to the Treasurer). The Annual Reports Act further requires the
Commission to prepare a Report of Operations, including a ‘letter of submission’ to the
Minister.
The 2012 Commission Act requires the Commission to prepare a report of its operations and
furnish it to the Management Committee for transmission, with such comments as the
Management Committee thinks fit, to the Minister. The Annual Reports Act allows the
Commission to incorporate all of these annual reports into a single document, and it has
done so on this occasion.
In preparing this report, the Commission has sought to provide the public with as full an
account of itself and its activities as is lawful, economical and not prejudicial to its functions.
This Report was prepared and has been furnished in accordance with s. 82 of the 2012
Commission Act; the Annual Reports Act; the Annual Reports (Departments) Regulation
2010 (‘the Annual Reports Regulation’); Treasury Circulars 07/12, 07/13, 08/08, 08/10,
09/07, 10/09, 11/03, 11/09, 11/18, 11/19, and 11/21; and Premier’s Memoranda 1997-10,
2002-07, 2003-05, 2004-05, 2009-01, 2011-05, 2011-22, and 2013-09. In particular, this
Report complies with Premier’s Memorandum 2013-09, entitled ‘Production Costs of Annual
Reports’, which requires that:
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 content is limited to recording performance and statutory obligations;
 two copies of the Annual Report be printed in black and white using in-house
equipment for provision by the Minister to Parliament;
 unnecessary photographs or illustrations are eliminated; and
 all external production costs such as copy writing, design and printing are eliminated.
The 2012 Commission Act provides the Minister with authority to give directions on the
manner and time of the preparation of the Annual Report (but not its contents). No such
directions have been made with respect to this Annual Report.
No extension of time for the submission of this Report was sought or granted.
In accordance with the Premier’s Memorandum 2012-11, now superseded by 2013-09, the
Commission produced ten hard copies of the 2011–2012 Annual Report. These copies were
produced using the existing facilities of the Commission and at a minimal cost.
Consistently with Premier’s Memorandum 2013-09 and taking into account the additional
reporting rules applicable to the Commission, twenty hard copies of this Annual Report will
be made. This will enable copies to be provided to the Minister (with an extra copy to
facilitate provision to Parliament), the members of the Management Committee (with an
extra copy for transmission to the Minister), and to the Inspector of the Commission, with the
Commission keeping one copy (enabling it to satisfy appropriate record keeping standards).
No consultants were retained for any aspect of the preparation of this Annual Report and no
external costs were incurred.
Year in review
The reporting period was one of consolidation and enhancement after the challenges of the
previous year which included public hearings conducted by the Police Integrity Commission
(‘the PIC’) into the asset confiscation practices of the Commission, the Special Commission
of Inquiry into the New South Wales Crime Commission (‘the Patten Inquiry’) and its Report
(‘the Patten Report’), and the retirement of the Commission’s longstanding Commissioner.
The commencement of the 2012 Commission Act gave effect to many of the
recommendations of the Patten Report. The 2012 Commission Act is designed to strengthen
the accountability of the Commission and includes a stronger independent Management
Committee; oversight by the Parliamentary J oint Committee on the Office of the
Ombudsman, the Police Integrity Commission and the Crime Commission (‘the PJ C’);
scrutiny by an independent Inspector; and a requirement that a person is not eligible to be
appointed as Commissioner unless the person has special legal qualifications.
A new Commissioner was duly appointed with effect from 5 November 2012 and, as the
2012 Commission Act requires, there are now two Assistant Commissioners, one of whom
has special legal qualifications.
The Commission’s restructuring, which began during the last reporting period, continued. In
particular, the management structure of the Commission was refined.
A Governance Manager was appointed to lead a Governance Unit to continue the review of
policies, practices and procedures.
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The Commission is in the process of recruiting a Director (Corporate Services). The Director
(Corporate Services) will be responsible for the management of finance, information and
communication technology, human resources, building services and records management.
Importantly, administrative changes in the reporting period have not come at the cost of the
Commission’s operational effectiveness. As the figures below show, the reversal achieved in
2011–12 of the decline in arrests and charges that had been occurring in recent years has
been continued and there has been a return to close to the results of previous years.
Furthermore, as a result a statutory amendment, the effect of the decision of the Supreme
Court in NSW Crime Commission v. Cook [2011] NSWSC 1348 (‘Cook’s Case’) on
confiscation values has been remedied. This has meant that a significant drop in the value of
asset confiscation in 2011–12 has been reversed.
The object of the 2012 Commission Act is to reduce the incidence of organised and other
serious crime. The Commission has developed an Organised Crime Disruption Strategy
(‘OCD Strategy’) to provide a framework in which to pursue the statutory object. The OCD
Strategy will commence in the next reporting period. The OCD Strategy involves the
identification of organised crime groups in New South Wales (‘NSW’), with particular
reference to the identification of persons who appear to be the leaders of the groups. The
process involves an objective evaluation of the threats posed by the various groups and
prioritisation of the allocation of resources either to investigate the persons involved, to
continue to develop profiles of the groups or to monitor their activities. The OCD Strategy
aims to introduce an element of discipline in decisions regarding the use of the
Commission’s resources and to refine arrangements by which the Commission works in
partnership with other agencies, such as the NSW Police Force (‘NSW Police’), Australian
Federal Police (‘AFP’), ACC and the Australian Customs and Border Protection Service
(‘ACBPS’). The OCD Strategy is available on the Commission’s website.
The fight against organised crime groups is evolving continually as criminals become aware
of current investigative methodologies and increasingly use technology to minimise
detection. The elimination of organised crime is beyond the capacity of any law enforcement
agency, and interagency co-operation is essential. It is pleasing to note that there is an
increasing level of intelligence sharing and operational co-operation between the State and
Federal law enforcement agencies operating in NSW. This is reflected in the number of
successful multi-agency investigations in the reporting period. To facilitate information
sharing with its partner agencies, the Commission regularly meets with officers from State
Crime Command, other NSW Police units, the AFP, the ACC, and the ACBPS.
The Commission receives operational assistance from the OC(T)S, which operates from the
Commission’s premises. The Commission also investigates criminal activities in
collaboration with other squads of the State Crime Command, Local Area Commands and
Regional Enforcement Squads, when assistance is requested, and participates in medium
term task force arrangements in Task Force Polaris and the J oint Organised Crime Group
(‘J OCG’). These joint operations have had direct success in the form of major seizures and
arrests, but more generally result in more efficient use of resources and the identification of
vulnerabilities in organised criminal groups.
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Key measures of, and trends in, the results of the Commission’s work
The meaningful measurement of the Commission’s results rests on the vexed question of
identifying accurate performance indicators through which to measure the reduction, or lack
thereof, in the incidence of organised and other serious crime. The PJ C has sought
submissions and assistance from elsewhere on this issue.
Traditionally three of the key measures of the work of the Commission have been the
number of arrests arising from Commission investigations, the number of charges laid as a
result of those investigations, and the realisable value of confiscation orders made during the
reporting period. Reporting those outputs of law enforcement activity is important. It is a form
of reassurance that the Commission is discharging its functions and that disruption of
organised crime is taking place. However, the figures alone do not provide a full
demonstration of the outcome in terms of the statutory object of reducing the incidence of
organised crime.
Figures relating to arrests, charges and confiscated asset values are not indicators of direct
outcomes of functions performed during the reporting period. In addition, factors beyond the
control of the Commission may distort the figures. For example, the arrests in a reporting
period may be the product of extensive investigations carried out, but not resolved, during
the previous period, and conversely, it may be that substantial resources have been utilised
in investigations during a current reporting period, but will not result in arrests until the next
period. In addition, bare figures of arrests and charges are not capable of reflecting vital
information concerning the stature of the criminals arrested, the gravity of the charges laid,
and the periods of imprisonment imposed during which the criminals are effectively
prevented from engaging in criminal activities. Similarly, the number of charges laid during a
reporting period may be distorted by the type of offences involved. In a fraud case, there
may be many charges resulting from a relatively short investigation whereas in a homicide
case, there may only be one charge even though there has been a lengthy inquiry.
In the same way, dollar values of the results of confiscation proceedings may not truly
measure performance. As is reflected in figures for the year 2009–10 in the table below, a
single confiscation of a large amount of property as a result of a settlement, may give the
appearance of the conduct of more proceedings than in other years, when that may not be
the case. As reported elsewhere, the decision of the Supreme Court in Cook’s Case caused
an immediate collapse in the effectiveness of the existing confiscation regime. A later
statutory amendment cured this with the result that confiscation levels are returning to those
seen in previous periods.
As noted above, during the next reporting period the Commission will adopt an OCD
Strategy. The OCD Strategy will involve compiling information on persons of interest
recorded by the Commission and the percentages of those persons who are subject to
various levels of scrutiny and investigation. It is not expected that the information gathered
as part of the OCD Strategy will ever be capable of recording all participants in organised
crime groups, but it will provide an indication of the extent to which the activities of known
persons of interest are being disrupted.
Another factor which has been suggested as a basis for assessing performance is the more
general characteristic of procedural integrity. On that basis the Commission should receive a
high rating. As is described later in this Annual Report, in addition to the supervision
provided by the Management Committee, the Inspector, the PJ C, and the PIC, an Internal
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Audit and Risk Committee (‘IARC’) ensures that specified audits are conducted in a timely
fashion.
In addition, the capacity of the Commission to exercise the prescribed statutory powers and
to access government databases results in the operational activities of the Commission
being subject to over 20 inspections, audits or reporting obligations. The absence of adverse
comment of any substance from the agencies involved is an assurance that the Commission
is performing its functions in a manner which warrants public confidence.
The figures provided below for the current reporting period at least provide a basis for
confidence that the Commission has continued to perform at a level for which it was
respected in the past. The figures for arrests and charges reflect a significant increase on
the previous reporting period from a slightly higher number of references from the
Management Committee.
It is possible to identify one trend from the statistical information available. Although news
media reports tend to emphasise disputes between outlaw motorcycle gangs as the
dominant cause of recent gun violence, investigations conducted by NSW law enforcement
agencies indicate that most of the shootings relate to disputes over drug trafficking. In
particular, many of the shootings relate to the running of lucrative street level drug runs that
are typically controlled by organised, but highly localised, crime groups. The Commission,
acting jointly with NSW Police, has responded to community concerns over the use of
firearms and, pursuant to a number of references, participated in investigations which
resulted in the seizure of approximately 50 firearms, as well as explosives, ammunition,
knives and replicas, the numbers and quantities of which were well in excess of the previous
year.
Measure 2008–09 2009–10 2010–11 2011–12 2012–13
Arrests 275 190 139 92 169
Charges 2,113 1,685 734 431 684
Realisable
confiscation
value ($)
24,060,800 44,929,650 20,989,149 14,488,267 19,541,008
8



















MANAGEMENT OF THE COMMISSION
Organisational structure
A chart indicating the Commission’s organisation structure as at 30 J une 2012 can be found
at Appendix B.
The Commissioner and Assistant Commissioners
In its determination dated 9 November 2012, the Statutory and Other Offices Remuneration
Tribunal set the remuneration of the Commissioner at $441,690 per annum on a salary
packaging basis, and of the Assistant Commissioners at $401,255 per annum.
Mr Peter Hastings QC
Mr Hastings has been a barrister for more than 35 years and was appointed Queen’s
Counsel in 1992. He practiced extensively in criminal law, appearing for the prosecution and
defence. Mr Hastings was Senior Counsel Assisting the Kennedy Royal Commission into
Police Corruption in Western Australia between 2002 and 2004 and was Counsel for the
Commissioner of Police in the Wood Royal Commission in 1995 and 1996.
Mr Peter Singleton
Mr Singleton, BA (Hons), LLB, has been a barrister for more than 14 years. Mr Singleton has
extensive experience in administrative and criminal law. Prior to the appointment of Mr
Hastings, Mr Singleton was the Commissioner for the Commission. Under Mr Phillip Bradley,
Mr Singleton was the Assistant Commissioner for the Commission for two years.
Mr Robert Inkster OAM APM
Mr Inkster, GradDipCrim, took up the role of Assistant Commissioner in December 2012.
Prior to this Mr Inkster served in the NSW Police for 39 years, retiring in October 2004 with
the rank of Detective Chief Superintendent. During his tenure with NSW Police, Mr Inkster
specialised in the investigation of serious and organised crime. Following his retirement from
the NSW Police, Mr Inkster served as Chairman of the Board of the Tow Truck Authority of
NSW between 2005 and 2007, and as a Community Representative with the State Parole
Authority between 2004 and 2012.
Management Team
Although the Commissioner and Assistant Commissioners were responsible for the
management of the Commission, in practice the general management of the Commission
was undertaken by the Commission’s Management Team. During the reporting period, the
Management Team consisted of Mr Hastings (from 5 November 2012), Mr Singleton, Mr
Inkster (from 17 December 2012), the Director (Special Activities) and Solicitor to the
Commission, the Director (Criminal Investigations), the Director (Financial Investigations),
and the Executive Manager. The Management Team met on a weekly basis until February
2013, and on a fortnightly basis thereafter.
Commission personnel
Under the 1985 Commission Act and the 2012 Commission Act, a significant number of
officers and members of other law enforcement agencies (most numerously, officers of the
NSW Police) were made members of the staff of the Commission in order to facilitate
9





















effective investigations. A smaller number of people are employed to enable the Commission
to discharge its functions. These persons are remunerated from the Commission’s budget,
and are considered to be employees of the Commission. As at 30 J une 2013, three such
employees were permanently employed by the Office of the New South Wales Crime
Commission pursuant to Chapter 2 of the Public Sector Employment and Management Act
2002 (‘the PSE&M Act’), and 139 such employees (including five who were on parental
leave) were permanently employed by the New South Wales Crime Commission Division
pursuant to Chapter 1A of the PSE&M Act. Adjusting to take account of part-time working
arrangements, as at the last pay fortnight in 2012–13 the Commission had 126.13 full-time
equivalent (‘FTE’) permanent employees.
The Commission does not employ anyone who is a member of the State’s Senior Executive
Service.
Personnel numbers for 30 J une 2013 and 30 J une in the three preceding years were as
follows:
Personnel category 2009–10 2010–11 2011–12 2012–13
Statutory officers 1 2 1 3
Senior Executive Service 0 0 0 0
PSE&M Act, ch. 2 6 4 3 3
PSE&M Act, ch. 1A (permanent) 100 99 104 139
PSE&M Act, ch. 1 (casual) 41 34 29 0
The majority of the personnel of the Commission mainly or exclusively performed operational
tasks. Examples included intelligence analysts, intelligence managers, forensic accountants,
financial analysts, telecommunications interception administrators and monitors, staff of the
Technical Deployments Team, information and communication technology (‘ICT’) staff
working on specialist investigative systems, and those involved in human source
management. Some personnel had a more even division of operational and managerial
responsibilities (e.g., the Commissioner and Assistant Commissioners, each of the Directors,
and those staff members who prepare transcripts while also performing administrative and
support roles). Others were mainly or exclusively involved in administrative roles (e.g., the
Executive Manager, the staff of the Finance and Records Management Teams and those
ICT staff who provided ordinary corporate computing services). And, finally, there were the
staff of the Governance Unit. The classification of employees between the four areas must
be approximate, but was as follows:
Personnel Category Number FTE
Exclusively or mainly operational 113 96.41
Both managerial and operational 8 7.6
Exclusively or mainly administrative 21 19.13
Governance Unit 3 3
10



















Management projects and issues
A program of reforms was continued during the reporting period. Some of the more notable
reforms were as follows.
Information and communications technology
As foreshadowed in the 2011–12 Annual Report, during the reporting period the Commission
completed its project of virtualising its desktop computer infrastructure. It also commenced
planning and other work directed at introducing significant productivity gains and
improvements to investigations. These projects include the acquisition and implementation
of advanced analytical software, of advanced document production software and of a new
back-up system. These projects are all due for completion during 2013–14.
Policy review
During the reporting period, the Commission continued the review of its policies and
procedures begun in 2011–12. In addition to reviewing existing policies and procedures, the
Commission has developed, and is continuing to develop, new policies to address new
government directives and to address policy gaps identified through its continuous review
process. The Commission has adopted a cyclical review process for policies and
procedures.
Records management
During the reporting period, the Records Management Review Committee finalised the new
Business Classification Scheme for Records. The Commission implemented this scheme in
J anuary 2013. The Records Management Database was upgraded and substantially
reconfigured to accommodate the requirements of the new scheme.
These two projects have greatly improved the record keeping functionality for the
Commission, and other compliance requirements. The systems are being monitored and
regularly reviewed for improvement.
There are a number of Records Management Projects and related projects in train to
improve compliance with the State Records Act 1998, and the needs of the Commission.
These include Digital Recordkeeping and Digital Information Security which are major
projects being undertaken with the assistance of an independent third-party provider
(‘ITPP’).
Building management
The Commission operates out of a building in Kent Street, Sydney, that it acquired in 1993
out of its own resources and advance payment of funding for four years’ rent obtained from
the Government and Parliament. Thereafter, the Commission’s budget allocation was
reduced as it no longer had to pay rent. The Commission managed and maintained the
property until it was required to transfer its ownership to the State Property Authority (‘SPA’).
SPA has since been renamed Government Property NSW (‘GPNSW’).
Management of the Commission building during the reporting period was conducted by DTZ,
a UGL company, with oversight from Facilities Managers at GPNSW.
In the last reporting period, GPNSW commenced the roof membrane replacement project.
This project began in J une 2012 following an extended period of planning and organisation
which had commenced in mid-2010. GPNSW has taken steps to remedy the damage
11


























caused by water penetration of the roof membrane, being the replacement of carpet and
ceiling tiles.
GPNSW completed a major electrical upgrade program for the building, which included the
installation of two new pressurisation fans in the building’s designated evacuation stairwells.
There has also been additional work carried out on the building’s air-conditioning
infrastructure. This has resulted in improved environmental conditions for staff.
While these significant projects were completed in the last reporting period, there are
ongoing issues in relation to water penetration into office areas caused by a combination of a
broken rainwater head, corroded downpipe and drummy render. This issue was first reported
to GPNSW in mid-2011. As a result of this issue, the Commission has lost the use of a
portion of the building which has caused inconvenience and disruption. It is hoped that this
issue will be remedied in the next reporting period.
Complaint handling
Complaints about the Commission can be made directly to the Commission, to the Inspector
of the Commission, and to the PIC.
Complaints can be made to the Commission as follows:
Mail Fax Email
Complaints Officer
NSW Crime Commission
PO Box Q566
SYDNEY NSW 1230
Complaints Officer
02 9269 3809
complaints@crimecommission.
nsw.gov.au
Public Interest Disclosures
The Commission is a public authority to which the Public Interest Disclosures Act 1994 (‘the
PID Act’) applies. The Commission is committed to acting with proper regard to the public
interest and all Commission staff have the full support of the Commission when seeking to
make a public interest disclosure in accordance with the PID Act.
In its support of the PID Act, the Commission has taken appropriate steps to encourage staff
of the Commission to make legitimate public interest disclosures if they witness or discover
relevant misfeasance or nonfeasance, to protect staff from reprisals for making public
interest disclosures, and to rectify any issues that are uncovered as a result of public interest
disclosures.
The Commission has updated its Internal Reporting Policy in accordance with the
amendments made to the PID Act during the reporting year. The Commission’s Internal
Reporting Policy is available to all staff of the Commission and, pursuant to s. 6 of the
Government Information (Public Access) Act 2009 (‘the GIPA Act’), is also publicly available
free of charge on the Commission’s website.
During the reporting year, the Commission undertook relevant educative measures to ensure
that all staff were aware of the contents of the Commission’s Internal Reporting Policy and
the provisions of the PID Act (especially the protections for a person who makes a public
interest disclosure). An e-learning module on public interest disclosure was also made
available to staff of the Commission during the reporting period.
12

























Pursuant to the PID Act, the Commission has nominated both male and female Disclosure
Officers, a Disclosures Coordinator and a panel of Disclosures Support Persons.
During the reporting year, the Commission received three public interest disclosures from
two public officials. Two reports related to maladministration and one report related to a
serious and substantial waste of money. No public interest disclosures were finalised during
the reporting period. One was finalised shortly after the end of the reporting period and the
Commission will report on it in its next PID Act report. The Commission is continuing to
investigate the two remaining public interest disclosures.
The Commission’s Annual Report under s. 31 of the PID Act is reproduced at Appendix C.
Its first report under s. 6CA of the PID Act is reproduced at Appendix D.
Other complaints
The Commission has a history of accepting complaints and disclosures, of properly dealing
with them, and of protecting their makers from reprisals. The Commission provides its staff
with an alternative system for complaints and disclosures outside the PID Act. Staff are able,
if they choose, to use non–PID Act procedures.
The Commission is committed to acting properly in relation to complaints that are not public
interest disclosures, whether made by members of staff of the Commission or members of
the public. The Commission encourages staff to raise problems or complaints with their
supervisors and the Management Team. The Commission’s Management Team meets
regularly and all complaints and possible complaints are discussed. The Commission
endeavours to deal with each problem or complaint effectively and efficiently.
The Commission has a Complaints Handling Policy that incorporates the recommendations
of the Patten Inquiry. The Commission maintains a register of all current and previous
complaints on a computerised complaints management system.
In the reporting period, the Commission received four complaints: one complaint was internal
and three were from members of the public.
The internal complaint led to a disciplinary process. Two of the complaints from members of
the public were assessed as being vexatious, frivolous, lacking in substance or not
amounting to a complaint.
One complaint was referred to the PIC.
Reporting complaints to the Inspector of the Commission
Since 5 October 2012, the Inspector of the Commission has had responsibility for dealing
with (by reports and recommendations):
  complaints of abuse of power, impropriety and other forms of misconduct on the part of
the Commission or officers of the Commission; and
  conduct amounting to maladministration (including, without limitation, delay in the
conduct of investigations and unreasonable invasions of privacy) by the Commission
or officers of the Commission.
The Commission’s website contains details of how people can contact and complain to the
Inspector of the Commission.
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Reporting complaints to the Police Integrity Commission
Since 1 J uly 2008, the PIC has had responsibility for preventing and detecting misconduct of
Commission officers. The Police Integrity Commission Act 1996 (‘the PIC Act’) provides that
the principal focus of the PIC should be on serious misconduct. The PIC’s functions extend
to both current and former members of staff of the Commission.
Since the introduction of the 2012 Commission Act, the PIC cannot conduct an investigation
in relation to the Commission in circumstances where no particular Commission officer has
been implicated and no misconduct of a Commission officer is suspected unless it has
obtained the consent of the Inspector of the Commission.
Complaints that the Commissioner suspects on reasonable grounds concern, or may
concern, misconduct of a member of staff of the Commission are notified to the PIC in
accordance with s. 75D of the PIC Act.
The Commission’s website contains details of how people can contact and complain to the
PIC.
14



























THE LEGAL CONTEXT
Crime Commission Act 2012 and the NSW Crime Commission Act 1985
The 2012 Commission Act repealed and replaced the 1985 Commission Act with effect from
5 October 2012. The 2012 Commission Act gives effect to many of the recommendations
contained in the Patten Report. The 2012 Commission Act strengthened the accountability of
the Commission and increased oversight and management. The 2012 Commission Act also
introduced changes designed to increase the Commission’s operational effectiveness.
The 2012 Commission Act provides the Commission with a broader objective. The 1985
Commission Act referred to the object of that Act as reducing the incidence of illegal drug
trafficking and the incidence of organised and other crime. The object of the 2012
Commission Act is to reduce the incidence of organised and other serious crime without
specific reference to drug trafficking.
Significantly, the principal functions of the Commission were amended. These functions now
involve the investigation of matters relating to a relevant criminal activity or serious crime
concern; re-investigating matters that have been the subject of a police enquiry; providing
investigatory, technological and analytical services to other persons or bodies; and working
in co-operation with other authorities of the Commonwealth, the State or another State or
Territory. The Commission discharges these functions pursuant to a reference from, or the
approval of, the Management Committee and/or subject to any directions made or guidelines
furnished by the Management Committee.
The introduction of the concept of a ‘serious crime concern’ and the removal of the
requirement that the Management Committee be satisfied that ordinary police methods of
investigation are unlikely to be effective in the matter expanded the scope of the
Commission. A ‘serious crime concern’ is defined as any circumstances implying or alleging
that relevant types or classes of offences are being committed in an organised, systemic or
sustained way. Relevant types or classes of offences include those that have, or are likely to
have, a significant impact on the community or involve substantial proceeds of crime.
The Management Committee is limited in its ability to refer matters to the Commission. The
Management Committee may refer matters to the Commission for investigation if: the use of
the Commission’s powers appears to be necessary to investigate the relevant criminal
activity or serious crime concern fully; the investigation of the relevant criminal activity or
serious crime concern is in the public interest; and the relevant criminal activity or serious
crime concern is serious or prevalent enough for the Commission to investigate.
The Management Committee itself has been reconstituted pursuant to the 2012 Commission
Act and now has an independent chairperson, Mr David Patten, appointed by the Minister.
The Minister no longer sits on the Management Committee.
The Management Committee may refer new matters relating to relevant criminal activity or
serious crime concerns to the Commission for investigation, refer matters for re-
investigation, make arrangements for task forces to assist the Commission in carrying out its
functions, and review and monitor generally the work of the Commission. In addition to
referring new matters to the Commission for investigation, the Management Committee is
now required to conduct a review of the status and progress of each existing reference
15





























(granted pursuant to the 2012 Commission Act) within a prescribed period, and on
completion of the review may either renew or discontinue the reference.
The Management Committee is empowered to give directions and furnish guidelines to the
Commission with respect to the exercise of its functions. Where such guidelines or directions
are issued, the Commission must comply with them. In particular, the Management
Committee must furnish the Commission with guidelines about the negotiation of the terms
of agreement regarding orders made by consent under the CAR Act. The Management
Committee has furnished the Commission with such guidelines. These guidelines are
available at Appendix A of this report and on the Commission’s website.
The Management Committee may also give directions and furnish guidelines about the
internal management of the Commission and the Commission must comply with any such
directions or guidelines. The Management Committee has issued no such guidelines. The
Commission must keep the Management Committee informed of the general conduct of its
operations in the exercise of its functions and if the Management Committee requests the
Commission to provide it with information concerning any specific matter, the Commission
must comply with that request.
The 2012 Commission Act allows for the appointment of an Inspector of the Commission.
The Inspector’s principal functions are: to audit the operations of the Commission for the
purpose of monitoring compliance with the law of the State; to deal with complaints of
misconduct and maladministration by the Commission or officers of the Commission; and to
assess the effectiveness and appropriateness of the procedures of the Commission relating
to the legality or propriety of its activities.
To facilitate the exercise of these functions, the Inspector can investigate any aspect of the
Commission’s operations or conduct, require access to the records of the Commission, and
require the production of documents. The Inspector may investigate and assess any
complaints, and refer matters to other public authorities, and recommend disciplinary action
or criminal prosecution of officers of the Commission. For those purposes, the Inspector may
make or hold inquiries and has the powers of a Royal Commissioner under the Royal
Commissions Act 1923.
The 2012 Commission Act also brings the Commission under the oversight of the PJ C. The
PJ C monitors and reviews the Commission’s, Management Committee’s, and Inspector’s
exercise of their respective functions. The PJ C reports to both houses of Parliament on
matters regarding the Commission, the Management Committee or the Inspector. The PJ C
cannot reconsider any decision of the Management Committee to refer matters for
investigation, applications by the Commission for consent orders under the CAR Act, or
decisions of the Commission in relation to operational matters.
The 2012 Commission Act reduces the circumstances in which the PIC can conduct an
investigation in relation to the Commission. The PIC cannot conduct investigations in relation
to the Commission in circumstances where no particular Commission officer has been
implicated and no misconduct of a Commission officer is suspected, unless it has obtained
the consent of the Inspector of the Commission.
The 2012 Commission Act introduced further provisions relating to the staff of the
Commission. Officers must furnish to the Commission a statement of financial interests and
notify any subsequent changes in the financial interests of the officer or persons associated
with them. The Inspector and the Commission are allowed to acquire information concerning
16




























persons who apply for appointment to positions within the Commission and to deal with such
vetting information within the safeguards stipulated in the 2012 Commission Act.
The 2012 Commission Act also made significant changes in relation to investigations the
Commission carries out. The power to conduct hearings and to issue notices for the
purposes of gathering information remain, together with the overriding of privilege against
incrimination when answering questions or producing documents. However, as noted above,
the 2012 Commission Act introduced the concept of a serious crime concern which has
expanded the scope of the Commission. In addition, the information considered by the
Management Committee in deciding whether to refer a matter to the Commission for
investigation has changed, as outlined above.
The Commission continues to be vested with functions under the CAR Act. The 2012
Commission Act maintains the integration of the functions of the Commission under the two
Acts. This is through the definition of serious crime concern including types or classes of
offences which are likely to involve substantial proceeds of crime within the meaning of the
CAR Act and by providing that the Commission may exercise functions imposed on it by the
CAR Act. This includes carrying out investigations in aid of those functions and allowing the
Commission to make such use of information gained as it thinks fit in the execution of the
2012 Commission Act.
Criminal Assets Recovery Act 1990
The Commission has primary responsibility for administering the CAR Act. The only other
authority having executive responsibility under the CAR Act is the PIC.
The principal objects of the CAR Act are:
  to provide for the confiscation, without conviction, of property of a person if the
Supreme Court finds it to be more probable than not that the person has engaged in
serious crime related activities;
  to enable the proceeds of serious crime related activities to be recovered as a debt
due to the Crown;
  to provide for the confiscation, without conviction, of property of a person that is
illegally acquired property held in a false name or is not declared in confiscation
proceedings; and
  to enable law enforcement authorities effectively to identify and recover property.
Under the CAR Act, the Commission sues alleged criminals. In the proceedings, which are
undertaken before the Supreme Court, the Commission seeks confiscation orders. There are
three types of confiscation orders:
  assets forfeiture orders (‘AFOs’) (by which specified interests in property are forfeited
to the Crown);
  proceeds assessment orders (‘PAOs’) (by which a defendant is ordered to pay to the
Treasurer an amount calculated as the amount derived from illegal activity [by the
defendant or another person] in the previous six years); and
  unexplained wealth orders (‘UWOs’) (requiring the defendant to pay to the Treasurer
an amount assessed as the value of the defendant’s wealth that the defendant cannot
prove was not illegally acquired).
17
























The Commission can obtain AFOs and PAOs if it can establish, upon the civil standard of
proof (i.e., on the balance of probabilities), that the person whose suspected serious crime
related activity was the basis of the application for the order did, in fact, engage in a serious
crime related activity within the six-year period prior to application.
An UWO can be made against a person if there is a reasonable suspicion either that:
  the person has, at any time, engaged in a serious crime related activity; or
  the person has, at any time, acquired serious crime derived property from the serious
crime related activity of another person (whether or not the person against whom the
order is made knew or suspected that the property was derived from the illegal activity
of the other person).
The Commission can apply for any or all of the three types of confiscation orders. It is
possible for both an AFO and a PAO or UWO to be made against the same person in the
same proceedings. Where the Commission has applied for both a PAO and an UWO, the
Court can only make the order that requires the payment of the greater amount, not both
orders. In making an UWO, the amount of any previously assessed PAO or UWO and the
value of any previous AFO must be deducted from the assessed value of the UWO—but
only if such amounts would otherwise have been included in the calculation of the (new)
UWO.
In the event of an AFO, it remains open to a defendant to apply to the Court for an ‘exclusion
order’ that either fully or partially excludes an interest in property from the operation of the
forfeiture order. The onus falls on the defendant to prove, on the balance of probabilities,
that the interest in property was (respectively) wholly or partially acquired lawfully.
The Commission does not retain proceeds of crime that are recovered under the CAR Act.
They are deposited into the Confiscated Proceeds Account (‘the CPA’) established by the
Treasurer. During the reporting period, the CAR Act provided for the application of the funds
in the CPA as follows:
From the CPA there is to be paid:
  to the Treasurer—the amounts from time to time determined by the Treasurer in
consultation with the Minister as payable for the purpose of administering the CAR Act;
and
  to the NSW Trustee and Guardian—such amounts from time to time as the Treasurer
is satisfied the NSW Trustee and Guardian is entitled to be paid under s. 19 of the
CAR Act; and
  any amount required to be paid in accordance with an order of the Supreme Court
under the CAR Act; and
  to the credit of the Victims Compensation Fund established under the Victims
Compensation Act 1996—half of the proceeds of PAOs or UWOs paid to the CPA
(calculated after deducting from the proceeds any amounts payable in accordance with
an order of the Supreme Court or agreed to be paid to the Commonwealth, another
State or a Territory or an authority of the Commonwealth, another State or a Territory);
and
18





















  other amounts in aid of law enforcement, victims support programs, crime prevention
programs, programs supporting safer communities, drug rehabilitation or drug
education as directed by the Treasurer in consultation with the Minister.
Pending proceedings, the Commission can apply to the Supreme Court for a restraining
order to prevent dealings with a defendant’s interests in property. If a restraining order is
made in respect of person’s interests in property then that person can seek to have the
restraining order set aside by making an application for a review of the restraining order.
Alternatively the person whose interest is restrained may, with leave, appeal against the
making of the restraining order.
The Court can make orders for the provision out of restrained interests in property of funds
for reasonable living expenses and reasonable legal expenses of criminal or confiscation
proceedings. The CAR Act provides that the making of an order for reasonable legal
expenses is subject to five rules:
a)   the Court must be satisfied that the defendant cannot meet the expenses out of
unrestrained property;
b)   no order can be made at the expense of an interest in property if the Court is satisfied
that that interest was unlawfully acquired;
c)   the defendant must have filed a Statement of Affairs;
d)   the Court must be satisfied that the defendant has taken all reasonable steps to bring
the defendant’s interests in property within the jurisdiction of the Court; and
e)   the order must specify the particular interest in property out of which the expenses are
to be met.
The CAR Act also empowers the Supreme Court, on the application of the Commission:
  to order the examination on oath or affirmation of defendants and other people;
  to order a defendant to provide a Statement of Affairs, on oath or affirmation,
describing his or her financial and asset affairs;
  to order financial institutions to provide information about a relevant person’s
transactions (‘monitoring orders’);
  to order a person to produce documents or things; and
  to issue search warrants,
in order to obtain relevant evidence, information and material. Furthermore, the 2012
Commission Act’s powers can be used in aid of the Commission’s work under the CAR Act.
The CAR Act applies the civil judicial system to the task of confiscating criminal assets.
Proceedings under the CAR Act are civil proceedings. This provision carries into
proceedings under the CAR Act the usual incidents of civil litigation, such as the duty and
propriety of attempting to resolve the proceedings by negotiated settlements. Negotiated
settlements, resulting in court orders by consent, resolve the majority of proceedings
commenced under the CAR Act. Consistently with legal principle, the negotiations are
conducted in private: for example, by s. 131 of the Evidence Act 1995 statements made
during negotiations are excluded from evidence. However, the orders by which matters are
resolved are Supreme Court orders on the public record. The Commission does not enter,
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and has never entered, into secret deals to share the proceeds of crime with criminals. Its
operations are not funded out of confiscated proceeds of crime, all of which are remitted to
the Treasurer and thereby the CPA.
The following table compares features of the three types of confiscation orders:
Feature AFO PAO UWO
Requires conviction? No No No
Serious crime related activity (‘SCRA’)
needs to be
Proven on
the civil
standard
Proven on
the civil
standard
Reasonably
suspected
Standard of proof imposed on the
defendant
Civil Civil Civil
Period within which the Commission is
required to prove engagement in SCRA
6 years
preceding
date of
application
6 years
preceding
date of
application
Life of the
defendant
Period over which proceeds of crime is
assessed by the order
Unlimited 6 years
preceding
application
Unlimited
Provision can be made for hardship of
dependants?
Yes No See below*
J udicial discretion to decline to make an
order or to make an order of an amount
less than would otherwise be made?
No No Yes, if the
Court
considers it
in the public
interest
*   The Court has power not to make a UWO or to make a UWO less than would otherwise be
made if it considers it to be in the public interest so to proceed. While this is not a hardship
provision, an example of when the power might be exercised might be a situation in which the
order would cause extreme hardship to a dependant of the person against whom the order
would otherwise be made.
In October 2012, the CAR Act was amended to reverse the decision in Cook’s Case. Section
62 of the CAR Act was amended to insert provisions in relation to the making of orders by
consent. The section now provides, inter alia, that orders, with the consent of the
Commission and the person whose interest in property will the subject to the order, can be
made under the CAR Act without the Supreme Court having to give consideration to matters
that it would otherwise have had to consider before making the order.
In particular, specifically addressing the issue in Cook’s Case, the section provides that
when making consent orders for the release of reasonable legal expenses from restrained
interests in property, the Supreme Court is not required to consider the matters set out in
s. 16A of the CAR Act.
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An effect of this amendment to the CAR Act was a marked increase in the estimated value of
the confiscation orders made during the reporting period.
It is important to note that the guidelines furnished by the Commission’s Management
Committee with respect to the negotiation by the Commission of the terms of agreements
regarding orders made by consent under the CAR Act governed, to a certain extent, this
amendment to the CAR Act.
The February 2013 Guidelines further document and formalise the considerations that have
always been taken into account when deciding on the appropriateness of a negotiated
outcome in confiscation proceedings. A copy of the February 2013 Guidelines can be found
at Annexure A to this Annual Report.
Other laws on criminal investigations
In addition to the 2012 Commission Act and the CAR Act, the Commission is recognised as
a law enforcement agency for the purposes of a number of other Commonwealth and State
statutes that confer investigative powers and rights on law enforcement agencies. The
Commission’s position under these statutes is the same as that of other law enforcement
agencies.
The principle statutes the Commission uses for investigative purposes are as follows:
 The Telecommunications (Interception and Access) Act 1979 (Cth) (‘TIA Act’) provides
for the interception (pursuant to warrant) of certain telecommunications (e.g.,
telephone calls), for access (pursuant to warrant) to certain stored communications
(e.g., short message service [SMS] messages), and for access (pursuant to
authorisation) to certain telecommunications call associated data. It also provides for
the destruction of certain material that is no longer required.
 The Surveillance Devices Act 2007 (NSW) (‘the SD Act’) provides for the use of
surveillance devices (listening, optical, data and tracking devices) under warrant.
 The Law Enforcement (Controlled Operations) Act 1997 (NSW) (‘LECO Act’) provides
for authorisation of controlled operations involving what would otherwise be unlawful
conduct.
 The Law Enforcement and National Security (Assumed Identities) Act 2010 (NSW)
provides for the creation and use of assumed identities.
Significant judicial cases
Confiscation issues
In New South Wales Crime Commission v Jason Lee [2012] NSWCA 276 (‘Lee’s Case’), a
New South Wales Court of Appeal judgment delivered on 6 September 2012, the
Commission sought leave to appeal from a decision of a Supreme Court judge who had
declined to make examination orders under s. 31D of the CAR Act. The basis for the refusal
was that the persons sought to be examined were facing extant criminal charges, and an
examination under the CAR Act would risk prejudicing the fair trial of those persons (see
New South Wales Crime Commission v Lee & anor [2011] NSWSC 80).
In the Court of Appeal, the Commission argued that the possibility that an examinee might
be obliged to give answers to questions that might tend to incriminate him or her in relation
21



























to the subject matter of a pending criminal charge was not a sufficient reason to decline to
make a CAR Act examination order. Further, the Commission argued that the terms of
s. 13A of the CAR Act (which abrogates privilege against self-incrimination and provides an
immunity in criminal proceedings from use of evidence given at a CAR Act examination),
together with the availability of protective orders under the Court Suppression and Non-
publication Orders Act 2010, s. 71 of the Civil Procedure Act 2005, and the Court’s inherent
jurisdiction to control its own processes, was sufficient to overcome any real risk of
interference with the administration of justice.
The Court of Appeal (constituted by five judges) unanimously granted leave to appeal,
upheld the appeal and made the examination orders sought. The Court held that the CAR
Act authorised the examinations of persons facing pending criminal charges, and (having
particular regard to s. 63 of the CAR Act) that CAR Act examinations were intended to be
conducted despite the possibility of interference with the criminal justice system.
The respondents to the appeal were subsequently granted special leave to appeal to the
High Court of Australia. That appeal was heard on 1 May 2013 and judgment was reserved
as at the reporting date.
Criminal investigation issues
The Commission’s Annual Report for 2011–12 referred to two cases concerning the
Australian Crime Commission Act 2002 (Cth) (‘the ACC Act’)—R v CB [2011] NSWCCA 264
and R v Seller; R v McCarthy [2012] NSWSC 934—and indicated that the application of
those cases to the Commission was likely to be considered by the courts in 2012–2013.
Seller and McCarthy came before the Court of Criminal Appeal, which allowed the Crown
appeal against a stay of the respondents’ trial. In the principal judgment of Bathurst CJ , the
Court found that the ACC Act abrogates the privilege against indirect or derivative self-
incrimination so as to permit, for example, the use of compulsorily acquired information to
obtain admissible evidence. Further that dissemination of coercively acquired evidence of an
accused may prejudice their right to a fair trial in circumstances where that evidence
discloses the accused’s defence or their explanation of events that supports the prosecution
case. The Court ultimately found that the dissemination of the transcripts of coercive
hearings with the accused to the prosecution should not have occurred as doing so may
have compromised their right to a fair trial. On the question of a stay of the trial the Court
found that the evidence before it did not reveal a fundamental defect in the trial process and
accordingly did not justify a stay. On 6 September 2013, the High Court refused the
applications of Seller and McCarthy for special leave.
Similar issues were raised by the High Court in X7 v Australian Crime Commission (2013)
298 ALR 570. The appellant was charged with Commonwealth drug offences and then
summonsed to give evidence in a compulsory examination before the ACC. At the hearing
the examiner asked the appellant questions directly concerning his charges. The appellant
refused to answer and subsequently sought declaration that to the extent that provisions of
the ACC Act permitted the examination of a person charged with an indictable
Commonwealth offence, the relevant provisions were beyond the power of the
Commonwealth Parliament. The appellant sought in the alternative, a declaration that the
examination was an impermissible interference with the right to a fair trial provided by
Chapter III of the Constitution. By majority (3:2), the High Court determined the first question
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by finding that the ACC Act did not evince a clear legislative intent to permit an ACC hearing
at which answers had to be given by a person facing criminal charges, about those charges.
During the reporting period, as foreshadowed, the Commission was also involved in
litigation. In SD v NSW Crime Commission [2013] NSWCA 48, the Court of Appeal held intra
alia, that the absence of a direction prohibiting publication to NSW Police or the DPP of
evidence given at the Commission was not a reasonable excuse to refuse to answer
questions. SD applied for special leave to appeal to the High Court. Special leave was
refused on 6 September 2013.
In J anuary 2013, MS served the Commission with a statement of claim alleging negligence
and deceit on behalf of the Commission and other parties (including the State of NSW and
Westpac) causing pure economic loss. MS alleged this loss arose as a result of the alleged
negligence of this Commission and other parties in the financial investigation of another
person and the subsequent legal proceedings under the CAR Act and sought basic
‘reinstatement relief’ of $57,582,162. Further to this, MS sought further damages for ‘actual
commercial loss/opportunity cost and interest accrued’, exemplary damages and costs. In
May 2013, the proceedings against the Commission were discontinued by consent.
Challenges to Commission determinations
Under subs. 19 (2) of the 1985 Commission Act and subs. 33 (3) of the 2012 Commission
Act, a person who is dissatisfied by a determination by the Commission that he or she (or it,
in the case of a corporation) must produce a document or thing or answer a question at a
hearing can to apply to the Supreme Court for a review of the determination.
Four such applications were made during the reporting period. Two of the challenges were
dismissed as frivolous and vexatious. One challenge was dismissed by consent. The fourth
challenge was dismissed with costs shortly after the end of the reporting period.
Other significant legislative changes
In addition to the commencement of the 2012 Commission Act there have been legislative
amendments during the reporting period that have impacted, to varying degrees, upon the
Commission’s work.
Director of Public Prosecutions Act 1986
In J anuary 2013, s. 15A of the Director of Public Prosecutions Act 1986 was amended to
impose statutory disclosure obligations upon the Commission, the PIC, and the Independent
Commission Against Corruption (‘ICAC’). The obligation falls upon ‘officers’ of the
Commission who are ‘responsible for an investigation into a matter that involves the
suspected commission of an alleged indictable offence’ when the Director exercises any of
his functions. The obligation is to disclose to the DPP all relevant information and documents
obtained during an investigation that might reasonably be expected to assist the prosecution
or defence case. The duty does not require the production of information and documents
that would contravene a statutory publication restriction, such as a non-publication order
made by the Commission. The duty in that case is to inform the DPP of the existence of
information or a document and its nature.
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Law Enforcement (Controlled Operations) Act 1997
In April 2013, the LECO Act was amended to require a secondary law enforcement officer in
all authorised operations. The role of the secondary law enforcement officer is to assume the
responsibilities of the principal law enforcement officer whenever the principal law
enforcement officer is unavailable.
Oaths Act 1900 and Oaths Regulation 2011
In August 2012, the Oaths Amendment (Police Identification Cards) Regulation 2012 came
into effect. It amended the Oaths Regulation 2011 to enable a police identification card
issued to a police officer by the Commissioner of Police to be used as an identification
document by an authorised witness for a statutory declaration or affidavit.
Surveillance Devices Act 2007
In April 2013, the SD Act was amended to permit the use of a recording device without a
warrant during authorised operations under the LECO Act.
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NATURE AND SCOPE OF ORGANISED CRIME
Section 82 of the 2012 Commission Act requires the Commission’s Annual Report to include
a description of the patterns and trends in the nature and scope of organised and other
crime that the Commission encountered during its investigations over the course of the year.
The illicit drug trade in Australia, from drug importation through to street level distribution,
continues to be the chief source of income for organised crime in Australia. Drugs like
cocaine and amphetamine-type stimulants (‘ATS’) (such as methylamphetamine) continue to
maintain very high prices in the Australian market when compared to the price
internationally. The price of these drugs reflects the success of anti-drug trafficking efforts in
Australia. The success of these efforts also increases the risk of doing business in Australia
which in turn reduces supply and further drives up prices. Volatility in the currency markets
and the strong Australian dollar also led to higher prices in the domestic illicit drug market.
Australia remains a supply-driven market and, despite the high price for illicit drugs, demand
continues to be high.
The vast majority of ‘hard’ drugs in New South Wales, or the pre-cursors from which they
have been manufactured, are imported from overseas, often in bulk through sea ports in
circumstances in which border controls have failed. The situation is aggravated by the
continued presence of workers at container terminals with criminal convictions and/or
connections. Such individuals may actively assist in the importations, or conduct a form of
counter-surveillance to alert their associates to law enforcement attention. The current
maritime security identification card (‘MSIC’) and aviation security identification card (‘ASIC’)
regimes are limited. There are relatively few criminal offences which can lead to the refusal
of an ASIC/MSIC application or the cancellation of an existing ASIC/MSIC. In addition,
membership of known criminal groups, such as motorcycle gangs, is not considered when
assessing the suitability of an ASIC/MSIC candidate. Unless the level of examinations of
containers at ports and points of entry are significantly changed, the position will continue
and regardless of the resources and ingenuity deployed ‘downstream’, law enforcement
agencies will struggle to make a long term impact on the illegal drug trade in Australia.
There is a strong international flavour to the Australian drug market. Although the principals
of many drug networks may be involved in importing large quantities of drugs into Australia,
many of them have not visited Australia. Consistent with the Commission’s experience in
previous years, these principals make use of proxies. These proxies travel to Australia,
arrange the Australian-side of the drug importation, and negotiate the sale of the illicit drugs
with Australian drug traffickers. The Commission’s intelligence indices suggest the high
number of detections, arrests and seizures have had little, if any, deterrence value for off-
shore groups. In many cases, it appears that these groups are able to replace persons
arrested in Australia with relative ease.
Several investigations resulted in very large seizures during the reporting period. These
included: the detection and seizure of a dual shipment of 520 kilograms of heroin and
methylamphetamine as a result of an AFP investigation, and the detection and seizure of
580 kilograms of crystal methylamphetamine (commonly known as ice) by the J OCG.
These are particularly large seizures, but they do not seem to have affected the availability
of the drugs. This suggests that there are large quantities of heroin, methylamphetamine and
crystal methylamphetamine being successfully imported.
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Mail, shipping and air cargo continue to be avenues through which all forms of precursor
chemicals are imported. The ACBPS has previously reported on large volumes of postal
importations of pseudoephedrine, primarily from Southern China. In the past six months,
detections of pseudoephedrine have declined, but importations of ephedrine have filled that
void.
The Commission’s investigations and human sources indicate both pseudoephedrine and
ephedrine (precursors used in the manufacture of ATS) are readily available. This implies
that the availability of other needed precursor chemicals is also sufficient to meet the needs
of the illicit drug market, although detections and seizures in the past 12 months have not
been so evident.
Commission intelligence indicates crime groups regularly establish clandestine drug
laboratories, but law enforcement frequently detects these operations. Information available
to the Commission suggests that organised crime groups now prefer to establish clandestine
laboratories outside metropolitan Sydney. This is done to minimise the chances of law
enforcement detection. In the reporting period, the NSW Police Drug Squad identified a very
large clandestine laboratory in bushland in central NSW. The NSW Police Drug Squad
believed this laboratory had produced a large quantity of ATS over a number of years.
Detection of clandestine laboratories of this type, in the absence of information from the
public or human sources, is very difficult: it requires vast law enforcement resources to
determine their existence, location, and to gather enough evidence during an investigation to
lead to a prosecution. Strange smells, fires, or, in extreme cases, explosions, often lead to
the discovery of clandestine laboratories by the authorities in the Sydney metropolitan area.
Money laundering remains a significant issue within the jurisdiction. Drug syndicates use and
promote both registered and unregistered alternative remittance agencies as a method of
laundering funds. The specific targeting of these remitters has yielded positive results in the
past 12–months. The efforts of the ACC, the AFP, and the Commission in investigating such
groups, both jointly and separately, have led to significant drug seizures and cash
detections. The Commission has received information that organised crime groups have
been investing in gold bullion as an alternative to cash because it is compact and easier to
conceal. The Commission’s enquiries have found discrepancies in how the use of cash to
purchase bullion is reported in Sydney.
Organised crime groups continue to favour using medium-sized property developments to
launder money, with varying degrees of success. On the occasions where the Commission
has detected money laundering through such schemes, it typically discovers extensive tax
evasion as well.
During the reporting period, the Commission noted that persons involved in criminal activities
are becoming more aware of confiscation procedures and are attempting to hide assets to
frustrate confiscation proceedings. A method commonly seen by the Commission is the
disguising of assets in the names of third parties. These third parties include relatives and
corporations. Where a person involved in criminal activity uses a corporation to hide assets,
the corporation is often controlled by relatives and/or associates who have no criminal
record.
In recent years, the Commission has found that arms-length finance companies, frequently
banks, are providing the finance for the acquisition of assets by persons involved in criminal
activity. The provision of this finance is dependent on a successful loan application. To
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ensure the loan application is successful, persons involved in criminal activities regularly
provide fraudulent tax assessment notices (‘TANs’) as proof of income. In the past,
Commission investigations showed that such TANs were false because the associated tax
returns had never been lodged with the Australian Taxation Office (‘the ATO’). The
Commission has seen evidence indicating that the methods used to fraudulently obtain
funding from finance companies are becoming more sophisticated.
What is particularly troubling about these more sophisticated schemes is that the persons
using them are relatively unsophisticated individuals. This would suggest that professionals,
including mortgage brokers, accountants and/or lending professionals, are advising and
enabling criminally active persons in their money laundering. The acquisition of assets
allows persons involved in crime to launder the proceeds of their offences and make
significant capital gains.
During the reporting period many Commission resources have been deployed to investigate
murders. A large number of the murders investigated by the Commission were committed by
organised crime figures and relate to drug trafficking.
More recently the Commission has been involved in the investigation of several shootings
across the greater metropolitan area of Sydney with various police commands including
Task Force Apollo. These shootings have predominantly been committed in the area of
south-western Sydney. Of the investigations in which the Commission has been involved,
the majority have been related to disputes in connection with the supply of prohibited drugs.
Common causes for the shootings appear to be: the encroachment by one gang into the
established drug territory of another; retaliation for previous attacks; defaults on drug debts;
and short-changing in respect of drug payments or the amount of drugs supplied in a
transaction.
The Commission has noted that many of the shootings involve low level drug suppliers.
Established drug runs are high value assets. They involve the sale of small amounts of all
types of prohibited drugs in high volumes. The drug runs are set-up as businesses. They
have a run manager, delivery personnel, also known as ‘runners’, and a safe-house where
the larger quantities of the drugs are stored. The runners return to the safe-house to collect
more drugs following the sale of their product. Drug phones are valuable commodities for
crime groups. The crime groups advertise these phone numbers to potential customers and
they are then used to set up drug deals. Typically, a drug run has a vehicle delivering drugs
for between 11 and 12 hours a day. The runners and run manager are paid at a set daily
rate. The groups defend their territory fiercely and disputes between groups and individuals
often result in the use of firearms.
While a drug supply in a typical drug run may be small, the value of these runs to some
groups cannot be underestimated. The Commission’s analysis indicates that one particular
group acquired a kilogram of high quality cocaine every fortnight. The group then diluted the
cocaine with an admixture, increasing its weight by approximately 50 per cent. The group
then bagged the diluted cocaine into .8 gram deal bags which they sold for a minimum of
$200 per bag. The group realised about $391,875 for an initial outlay of around $220,000.
The Commission estimates that after all expenses associated with the drug run were paid,
the group received a profit of $150,000 per fortnight of operation.
There are drug runs operating all over metropolitan Sydney with a high degree of
concentration in south-western Sydney. As shown above, the control of drug runs is highly
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lucrative. It also funds other criminal activities, such as drug importations and the purchase
of firearms to defend the drug runs.
As in the last reporting period, criminal groups continue to exploit mobile-phone encryption
methods. Some companies, which appear to be almost exclusively set-up to supply criminal
networks, provide mobile-phones for around $2,200. The price includes six month’s access
to a secure network. The GPS and audio functions of the phones are generally disabled. As
a result, the user is unable to make phone calls and is only able to communicate with other
members of the network via email. The email, in turn, is heavily encrypted. The Commission
believes the phones are almost exclusively used by criminals and there are limited legitimate
uses for such heavily encrypted phones in the wider community.
The changing nature of telecommunications technology, telecommunications carriers’
commercial practices, and telecommunications users’ practices is affecting the conduct of
criminals and the investigation of organised and other serious crimes. In the past,
telecommunications carriers kept records of individual communications: these records were
typically kept for five or more years for billing, complaint-handling, taxation and other
purposes. These records have also been a valuable data source. The Commission uses
these records to detect, investigate and/or disrupt murders, drug trafficking, and other
serious crime.
Changing technology and commercial practices—for example, the provision of
telecommunications services through data plans rather than billing of individual
communications—are now leading to the loss of previously available data. In addition, new
commercial practices and changes in communication habits have resulted in a massive
increase in the number of communications being made. Some telephone lines being
intercepted by the Commission pursuant to warrant are being used to make hundreds, and
even more than a thousand, communications (phone calls and SMSs) per day. The
Commission has not had the resources to monitor all this activity, which will also compel a
change in the staffing ratios between its electronic surveillance officers and its intelligence
analysts if resources permit.
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RECOMMENDATION FOR LEGISLATIVE CHANGE
Pursuant to subs. 82 (1) (c) of the Crime Commission Act 2012, the Commission’s Annual
Report must include any recommendations for changes in the laws of the State, or for
administrative action, that, as a result of the exercise of its functions, the Commission
considers should be made. The principal recommendation by the Commission pursuant to
that paragraph is to repeal it. Recommendations for legislative change are confidential
issues between the Commission and Government. They may also effect operational
activities where it is necessary to identify deficiencies in the Act or other legislation that
reduce the effectiveness of the Commission.
The Commission participated in the Organised Crime Working Group throughout the
reporting period and made a number of proposals concerning legislative change. In addition,
the Commission communicated with Government in relation to the correction of what appear
to be drafting issues arising from the introduction of the 2012 Commission Act. It is
inappropriate to report further on the details of the proposals which have been made.
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CRIMINAL INVESTIGATIONS
Management of investigations
The function of conducting criminal investigations is assigned to the Commission’s Criminal
Investigations Division (‘CID’). The typical Commission investigation was conducted,
pursuant to a Management Committee reference to investigate or approved to work in co-
operation with a joint task force, jointly with one or more of the Commission’s partner
agencies. Particular investigations were assigned first to one of the Commission’s criminal
investigation teams and then to a particular criminal intelligence analyst (or, sometimes, a
pair or group of analysts). The relevant Intelligence Manager, Assistant Director, the Director
(Criminal Investigations), Assistant Commissioner and/or Commissioner supervised the
investigation, depending on the circumstances of the matter.
Commission staff and officers of partner agencies, especially NSW Police officers,
discharged the day-to-day responsibility for the investigations. The Commission monitored
investigations through regular meetings (including with staff and senior police), written
reports, and other means.
The services of NSW Police task forces were made available to assist the Commission. The
task forces were subject to directions and guidelines issued by the Management Committee.
Police officers in these task forces become members of staff, but retain the usual duties and
powers of police officers, and remain under the command and control of the Commissioner
of Police.
Officers from other agencies (e.g., the AFP, Customs, the ACC and Austrac) often joined the
Commission in operations, bringing additional powers, skills and resources to the process.
ACBPS officers are located in the Commission’s building and make an invaluable
contribution to the Commission’s work. Conversely, the Commission has staff located in AFP
and ACBPS premises.
Amongst the most significant aspects of the Commission’s work are its joint investigations
with the NSW Police’s OC(T)S. The OC(T)S is located in the Commission’s building and
operates in an integrated fashion with the Commission’s On-Site J oint Investigations Team,
one of its monitoring teams, and ACBPS officers.
Participation in joint task forces
In addition to work done in conjunction with the NSW Police, the Commission participated in
three multi-agency task forces located away from the Commission’s premises, as follows.
Joint Counter Terrorism Team
The NSW J oint Counter Terrorism Team (‘J CTT’) was formally established in December
2007, although joint counter terrorism investigations had been underway for several years
prior. The various State J CTTs conduct intelligence and criminal investigations to prevent,
disrupt and investigate terrorist activities in Australia. The J CTT comprises officers from the
AFP, the NSW Police, the Commission and the Australian Security Intelligence Organisation
(‘ASIO’). Counter terrorism investigations are led by either the AFP or NSW Police, with the
Commission offering analytical, technical, linguistic and other operational support, as well as
the use of coercive powers.
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Joint Organised Crime Group
The J OCG is a multi-agency task force comprising representatives from the Commission,
the NSW Police, the AFP, the ACBPS, and the ACC.
The J OCG evolved in J uly 2009 from the J oint Asian Crime Group (‘the J ACG’), which had
been established in J uly 1997. The J ACG/J OCG is one of the longest continually running
multi-agency law enforcement task forces in NSW. The J ACG was an intelligence-led
investigative effort to target Asian organised crime groups involved in the importation and
trafficking of prohibited drugs. The J OCG has expanded terms of reference to investigate
organised crime groups involved in serious drug trafficking activities and associated money
laundering. The J OCG primarily focuses on organised crime groups involved in drug
importation and distribution, and interstate trafficking.
The Commission has been a part of the J ACG/J OCG since its inception, bringing to the
group criminal intelligence and financial analysis expertise, technical expertise and coercive
powers.
Polaris Task Force
The Polaris Task Force is a multi-agency task force comprising representatives from the
Commission, the NSW Police, the AFP, the ACBPS, and the ACC. Its role is to investigate
organised crime infiltration of the NSW waterfronts and related matters. The Polaris Task
Force has the additional function of identifying vulnerabilities in port environments and
making recommendations to mitigate the identified vulnerabilities. It formally began on 1 J uly
2010, with the NSW Police joining in early 2011, and it reached full strength in April 2011.
A significant amount—the Commission estimates roughly in the order of 80 per cent—of the
Commission’s work (which is focussed on drug trafficking but also includes investigations of
organised crime-related murders) arises from drugs and firearms illegally imported via the
waterfront ports. Significant social and economic problems arise from illegal importations
through waterfront ports.
The Commission has participated in the Polaris Task Force since its beginning in 2010 and
has done so from its ordinary resources. It performs multiple roles, including the provision of
criminal intelligence and financial analysis expertise, technical expertise and monitoring staff.
Use of statutory powers and authority
The powers available to the Commission under statute are discussed above. The powers
conferred by the 1985 Commission Act and the 2012 Commission Act were available in aid
of the Commission’s investigations and evidence gathering for both criminal prosecutions
and proceedings under the CAR Act. The figures in the table below entitled ‘New South
Wales Crime Commission Act’ and ‘Crime Commission Act’ relate to both aspects of the
Commission’s work. The following tables set out how often the Commission exercised or
used its statutory powers and authorities. Statistics on applications made by the Commission
pursuant to the provisions of the CAR Act can be found in the report on Financial
Investigations below.
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New South Wales Crime Commission Act 1985
Use of the legislation (and section of Act) Total
Notices to State public agencies (s. 10) 15
Applications for search warrants (s. 11) 0
Summonses to appear at hearings (s. 16) 59
Notices to produce (s. 17) 465
Arrest warrants (s. 18AA) 0
Crime Commission Act 2012
Use of the legislation (and section of Act) Total
Applications for search warrants (s. 17) 0
Summonses to appear at hearings (s. 24) 104
Notices to State public agencies (s. 28) 43
Notices to produce (s. 29) 1150
Arrest warrants (s. 36) 3
Law Enforcement (Controlled Operations Act) 1997
Use of the legislation Total
Applications for authorities made 3
Authorities granted 3
Law Enforcement (Powers and Responsibilities) Act 2002 *
Use of the legislation Total
Covert search warrants sought 0
Covert search warrants granted 0
*   A copy of the Commission’s Annual Report under s. 242A of the Act is reproduced at
Appendix E.
Law Enforcement and National Security (Assumed Identities) Act 2010 *
Use of the legislation Total
Applications to acquire and use an assumed identity 7
Applications granted 7
Authorities revoked 0
*   A copy of the Commission’s Annual Report under the s. 35 of the Act is reproduced at
Appendix F.
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Surveillance Devices Act 2007 *
Use of the legislation Total
Applications made 82
Warrants sought in those applications 172
Warrants granted 172
Warrants refused 0
Emergency authorisations sought 1
Emergency authorisations approved 1
*   A copy of the Commission’s Annual Report under subs. 45 (3) of the Act is reproduced at
Appendix G.
Telecommunications (Interception and Access) Act 1979 (Cth)
Applications, warrants etc (and section of Act) Total
Applications for A-party service warrants (s. 46 (1) (d) (i)) 417
Applications for A-party service warrants withdrawn 1
A-party service warrants refused 0
A-party service warrants issued 416
Applications for B-party service warrants (s. 46 (1) (d) (ii)) 1
Applications for B-party warrants withdrawn 0
B-party warrants issued 1
Applications for named person warrants (s. 46A) 96
Applications for named person warrants withdrawn 0
Named person warrants issued 96
Applications for entry warrants (s. 48) 1
Applications for entry warrants withdrawn 0
Entry warrants issued 1
Applications for stored communications warrants (s. 116) 3
Applications for stored communications warrants withdrawn 0
Stored communications warrants issued 3
Existing data authorisations (s. 178) 3,120
Prospective data authorisations (s. 180) 837
Destructions of intercepted material 347

Destructions of stored communications (s. 150) 1

†   Intercepted material was destroyed in accordance with s. 79 of the TIA Act and s. 8 of the
Telecommunications (Interception and Access) (New South Wales) Act 1987 (NSW).
In addition to the destruction of this material, the Commission destroyed material from 67 ICAC
services at the direction of the Commissioner for the ICAC.
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Results of investigations
The Commission reports on the arrests, charges and seizures (of money, drugs, weapons
and other items) that arise from its investigations. It is not practical for the Commission to
track or report on the arrests, charges and seizures that arise from its disseminations of
intelligence and information to other agencies, but those are not insignificant.
The prosecution process usually commences with an arrest. The Commission’s investigative
work is largely complete when a brief is delivered to the DPP or the Commonwealth Director
of Public Prosecutions (‘CDPP’). The DPP or CDPP then decides whether there is (or is not)
sufficient evidence to commence or continue a prosecution of the matter. The Commission
does not generally track or report on the results of prosecutions.
The tables below report results according to the Commission references, or approvals to
work in co-operation with a task force, under which the relevant investigations took place.
There are occasions on which an investigation is pursued under more than one reference or
approval. In such cases, the statistics have not been duplicated; rather, the information has
been assigned to the dominant reference or approval. In addition to reporting seizures in
accordance with the relevant reference or approval, the significant seizures have been
collated to show the volume of illegal goods that were seized in the reporting period.
The ‘Arrests and charges’ table reports figures for all references and approvals granted
since 1 J anuary 2012 and also for all earlier references either that led to arrests in the
reporting period or for the purposes of which the Commission exercised its coercive powers
under the 2012 Commission Act during the reporting period. It may be noted that some
investigative steps occur after a person is arrested and the ‘Arrests and charges’ table below
records nil arrests and charges in respect of some references under which arrests had been
made in earlier years. On the other hand, not all arrests are for charges of the predominant
type of offence being investigated under the reference: for example, of the 27 arrests made
and 147 charges laid in respect of the Eltham reference, which was a drug investigation, 6 of
the arrests related solely to weapons offences, and 81 of the 147 charges were for weapons
offences.
It is important to note that the Commission does not itself make arrests: that is a function of
the NSW Police and the AFP. The Commission’s statistics on arrests and seizures—
contained in the following tables—include only those arrests and seizures that come to the
attention of the Commission and therefore may understate the position.
Arrests and charges
Reference or
Task Force
Type Arrests Charges
Arkansas Drugs 13 64
Bagnoo Homicide 2 3
Cabarita Homicide 0 0
Calga Homicide 0 0
Collie Terrorism 0 0
Connecticut Drugs 0 0
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Reference or
Task Force
Type Arrests Charges
Dargan Public place shootings 8 30
Earp Public place shootings 1 1
Elsmore Homicide 0 0
Eltham Drugs 27 147
Federal Drugs 14 76
Fernmount Homicide 1 1
Garra Drugs 0 0
Gilmore Drugs 1 6
Halton Homicide 2 9
Hampton Homicide 1 1
Hilldale Drugs 3 3
Holbrook Homicide 0 0
Huntley VIII Terrorism 0 0
Ilford Homicide 2 5
JCTT Terrorism 1 1
Jiggi Drugs 22 77
JOCG Drugs 2 18
Kamarah Homicide 5 9
Kelso Drugs 0 0
Kingswood Drugs 0 0
Lapstone Homicide 0 0
Limbri Homicide 2 2
Milperra Homicide 3 6
Nabiac Drugs 8 27
Neville Firearms 0 0
Ootha Gangs 12 22
Oranmeir Firearms 0 0
Pambula Homicide 0 0
Peelwood Gangs 2 18
Pimlico Homicide 0 0
Polaris Drugs 14 37
Quandialla Drugs 3 12
Queanbeyan Money laundering 0 0
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Reference or
Task Force
Type Arrests Charges
Ramsgate Gangs 7 73
Raworth Drugs 0 0
Salisbury Homicide 0 0
Tarago Drugs 0 0
Unanderra Drugs 1 1
Varroville Gangs 0 0
Wakeley Drugs 1 1
Walcha Gangs 9 30
Yallah Gangs 0 0
Yowrie Money laundering 2 4
Totals 169 684
36















Seizures
Reference
or Task
Force
Drugs & precursors Weapons Cash* Other
Arkansas 40g pseudoephedrine 1 .22 calibre firearm $40,982 1 clandestine drug laboratory
6,440g ATS

1 handgun 4 sets of drug scales
15,006 MDMA pills 1 .22 calibre homemade firearm designed to
15 Oxycontin pills
look like an industrial nut and bolt
10 pen guns
1 lever action rifle
1 .22 rifle
1 22/250 rifle with scope
1 .22 sawn off long rifle
1 .22 calibre semi-automatic Remington rifle,
modified to fully automatic
1 sword
1,708 .22 rounds of ammunition and 2 boxes of
.22 calibre ammunition
1 7.62 round of ammunition
10 12 gauge shotgun shells
38 fired cartridge cases
110 rounds of various calibres of ammunition
37







Reference
or Task
Force
Drugs & precursors Weapons Cash* Other
multiple magazines including a magazine for a
.22 calibre pistol and an AK-47
gun accessories including scopes
Eltham

500g pseudoephedrine 1 inactive hand grenade $360,000 4 clandestine drug
8,850g ATS 3 detonators
laboratories
281g MDMA powder 3 sticks of power gel
$570,000 in counterfeit
currency
1 MDMA pill 1 410 shotgun
1 Harley Davidson
601g cocaine 1 12 gauge Bentley pump action shotgun
2 luxury vehicles
1 shortened double barrel shotgun
2 shotguns
1 assault rifle
1 .22 calibre shortened rifle
1 .22 calibre Astra pistol
3 handguns
1 .22 calibre Hornet pistol
1 9mm pistol
1 .25 calibre key ring pistol
1 Mach 11 machine gun
1 shortened machine gun with silencer
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Reference
or Task
Force
Drugs & precursors Weapons Cash* Other
1 Taser
1 blank-fire starter pistol
3 imitation 6mm pistols
10 boxes of .22 calibre ammunition
27 9mm rounds of ammunition
61 rounds of various calibres of ammunition
gun accessories including a laser gun scope,
multiple magazines, and silencers
ballistic vests
Federal 2,249g cocaine 1 .177 calibre air rifle
1 Desert Eagle BB gun
1 flick knife
2 knives
2 flashlight Tasers
1 Taser
1 .357 round of ammunition
a quantity of .40 calibre and 9mm rounds of
ammunition
multiple magazines
$185,213
USD2,000
574 cartons of cigarettes
1 clandestine steroid
laboratory
a large quantity of steroids
and agents used in the
manufacture of steroids
6 ice pipes
2 Nissan Skylines
39













Reference
or Task
Force
Drugs & precursors Weapons Cash* Other
Gilmore 49,850g opium
29,400g ATS
Hilldale 585,000g ATS $74,000
Jiggi 58,677g ContactNT
§
11,023g ephedrine
767g pseudoephedrine
28,432g ATS
6 baking trays of liquid ATS
2 MDMA pills
1 revolver
2 tasers
$190,540 drug manufacturing
equipment
1 police badge
JOCG 1,500g ATS 3 pistols $4,200,000
Nabiac 9,600g heroin
1,052g ATS
6,900g cocaine
$439,100
Ootha 242g heroin
1,250g cocaine
1 extendable baton $407,700 1 boat
2 bobcats
1 forklift
2 drug scales
jewellery
steroids
40
















Reference
or Task
Force
Drugs & precursors Weapons Cash* Other
Peelwood 250g pseudoephedrine
5,500g various precursors
2,668g ATS
400 MDMA pills
1g cocaine
1 air pistol
1 flick knife
1 Laser pointer
$26,688 radio frequency detector
steroids
Polaris 4,000g ephedrine
77,000g pseudoephedrine
9,500g ATS
8 MDMA pills
9,938g cocaine
1 extendable baton
2 .357 calibre Magnums
1 .223 calibre Ruger carbine rifle
1 .22 calibre Ruger pistol
1 .45 calibre Ruger revolver
200 rounds of .223 ammunition
12 boxes of .357 rounds of ammunition
ammunition for an M16 assault rifle
300 rounds of various calibres of ammunition
M16 magazine
W30 shotgun magazine
$515,800
USD20,000
4 litres acetone
drug cutting equipment
cutting agents
steroids
drug scales
Quandialla 14g heroin
12,148g ATS
$122,270
steroids
Unanderra 1,250g cocaine
41

















Reference
or Task
Force
Drugs & precursors Weapons Cash* Other
Wakeley $299,550
Walcha 2,570 MDMA pills
7g cocaine
1 SigSauer self-loading pistol
3 rounds of .22 calibre ammunition
15 9mm rounds of ammunition
2 other rounds of ammunition
SigSauer P227 magazine
$5,750 9mm gold bullet
ice pipe
steroids
Yowrie $1,479,000
*   Australian dollars unless stated otherwise.
†   ATS include amphetamine, methylamphetamine, crystal methamphetamine, and amphetamine analogues such as 4-bromo-2,5-
dimethoxyphenethylamine
‡ Due to operational security reasons, some of the statistics for Eltham were not reported in the 2011–12 reporting period.
§ Contains c. 40% pseudoephedrine.
Total key seizures
Item Amount
Cash $8,367,893
Drugs – ATS 684,989 grams and 6 baking trays of liquid ATS
Drugs – Cannabis 4,694 grams, half a plant, a large quantity of seeds, and a cannabis flower head
Drugs – Cocaine 22,196 grams
42




Item Amount
Drugs – Heroin 9,857 grams
Drugs – MDMA 18,011 pills and 281 grams of powder
Drugs – Precursor chemicals 157,757 grams
Significant miscellaneous seizures 5 clandestine drug laboratories used to manufacture ATS
1 clandestine drug laboratory used to manufacture steroids
drug manufacturing equipment
a large quantity of steroids
counterfeit Australian currency with a face value of $570,000
3 bobcats
2 forklifts
1 boat
Weapons – Ammunition 2,438 rounds and 24 boxes of various calibres of ammunition
Weapons – Explosives and components 7
Weapons – Guns 53
Weapons – Other 8
Weapons – Tasers 6
43



























Case studies
The Commission is involved in a variety of different investigations including drug
manufacture and supply, fraud, money laundering, and homicide investigations. The majority
of the Commission’s investigations, including most of its homicide inquiries, relate to the
activities of ongoing organised crime groups. The matters mentioned below are cases where
persons of interest have been arrested and/or convicted for a variety of offences arising from
Commission investigations.
Curban/Devine
Curban/Devine was an investigation into the April 2010 murder of a member of an outlaw
motor cycle gang, in Western Sydney, and into a number of associated offences. The
murder was not reported to NSW Police and the offenders, Mr KG and Mr BG, had the
opportunity to dispose of the victim’s body and clean the crime scene. In May 2010, NSW
Police received information about the murder and the persons involved. NSW Police
confirmed that the victim was missing. They then conducted a crime scene warrant and
recovered evidence that appeared to confirm the assertion that the victim had, at the very
least, suffered a severe injury at the location. The witnesses’ reluctance to come forward
combined with the time that elapsed between the murder and NSW Police becoming aware
of the murder, stymied the investigation.
The Commission became involved in the investigation in J uly 2010. The Commission used
its coercive powers to assist the NSW Police. The Commission compelled persons it
believed had information which could assist the investigation to come forward. These actions
resulted in several eyewitnesses agreeing to testify against the offenders. In addition, the
Commission assisted in identifying further witnesses who could substantiate the evidence of
the eyewitnesses.
As a result of the investigation, Mr KG was sentenced to a total of 51 years and 2 months
imprisonment for a range of offences including: murder, discharging a firearm with the intent
to cause grievous bodily harm, attempting to pervert the course of justice, and various
firearms offences. The judge ordered that the majority of the sentences were to run
sequentially. Mr KG will not be eligible for parole until 2034. Mr BG was charged with, and
convicted of, accessory after the fact to murder, firearms offences, and attempting to pervert
the course of justice. Mr BG was sentenced to a total of 6 years and 4 months imprisonment
and will be eligible for parole in 2016.
Eltham/Alistair
The Commission and OC(T)S conducted a two–year investigation joint investigation into the
supply of prohibited drugs and weapons by organised crime figures in NSW. The
investigation was code-named Eltham/Alistair.
The Commission provided the OC(T)S with criminal and financial analytical expertise along
with access to the Commission’s resources.
Between 2011–2012 and 2012–2013, the investigation resulted in the seizure of an inactive
hand grenade, three sticks of power gel, three detonators, five shotguns, two rifles, including
an assault rifle, seven handguns, two machine guns, including one with a silencer, a Taser,
a large quantity of ammunition, multiple magazines and silencers, a laser gun scope and
ballistic vests. In addition, during the reporting period, Eltham/Alistair seized 500 grams of
44









pseudoephedrine, 8.85 kilograms of ATS, 281 grams of MDMA powder, and 601 grams of
cocaine.
The investigation resulted in the arrest of 27 persons who were charged with a total of 147
offences. These arrests included a number of significant organised crime figures, including
three Balkan-Australian organised crime figures, senior members of the Hells Angels and the
Comanchero Motorcycle Clubs, and an Italian-Australian organised crime figure. The arrest
of these figures resulted in the disruption of a number of criminal networks. The prosecutions
in this matter are ongoing.
45
























FINANCIAL INVESTIGATIONS: CRIMINAL ASSET CONFISCATION
Role of financial investigation – relationship with criminal investigation
In its Financial Investigations Division (‘FID’), the Commission employs several expert
forensic accountants and financial analysts who specialise in tracing the proceeds of crime
and identifying assets held by, or on behalf of, those suspected of criminal misconduct,
including proceeds and assets that have been subjected to money laundering and other
efforts to hide them.
The primary purpose of these financial investigations is to support the discharge of the
Commission’s functions under the CAR Act. However, financial investigations are an
invaluable aid to criminal investigations. Financial investigations are sometimes deployed as
the leading investigative strategy, for much of the activities of organised criminal groups are
motivated by money. The FID’s Criminal Investigation Support Team is co-located with the
CID and provides forensic accounting contributions to the CID’s work. On the other hand, the
CID is a source of intelligence and evidence for the FID to use in confiscation action, and it is
important that staff in the CID be alert to confiscation potential and opportunity.
The Commission has protocols to ensure a proper separation of the two roles. In particular,
the Commission does not trade information and intelligence for leniency in confiscation: that
is, the Commission does not pursue confiscation action less vigorously or to a lesser extent
because of a person’s co-operation with the CID, nor seeks information, intelligence or other
co-operation when negotiating confiscation matters.
The confiscation process
The confiscation process begins when the Commission’s FID receives a referral of a matter
from either the Commission’s CID (or another part of the Commission) or one of the
Commission’s partner agencies, primarily the NSW Police.
The FID assesses the referrals in order to assist in determining whether or not confiscation
proceedings should be commenced. If a decision is taken to commence proceedings, the
FID prepares the necessary court papers, including, in most cases, an affidavit in support of
an application for a restraining order. Thereafter proceedings are commenced and, in most
cases, the Commission makes an application for a restraining order. A summons starts
proceedings and will seek one or more confiscation orders.
The Commission is obliged, by legal propriety and good sense, to engage with defendants
(or, when they are acting, with their lawyers) in negotiations directed at reaching a
settlement of the proceedings. In some cases, the Commission will, either as a result of
agreement reached during negotiations or for other reason, amend the summons to seek a
different or additional confiscation order.
If the proceedings are settled, orders (commonly called ‘consent orders’) are prepared and
presented to the Court. The orders will sometimes involve dismissal of the proceedings
without the making of a confiscation order and will sometimes involve the making of a
confiscation order. Almost all proceedings are settled.
In compliance with s. 57 (3) (a) of the 2012 Commission Act, the Management Committee
furnished the Commission with guidelines with respect to negotiating the terms of
settlements. Subsection 62 (4) of the CAR Act requires the Commission to certify that the
46





























Management Committee guidelines were complied with when consent orders are made in
confiscation proceedings.
The Commission settles most proceedings for a number of reasons. Firstly, the Commission
favours settling proceedings because there are inherent difficulties involved in producing an
entirely comprehensive financial analysis and, as confiscations are civil proceedings, the
Commission has a legal and ethical obligation to reach a negotiated settlement. Secondly, if
the Commission fails to establish a relevant offence or suspicion (and, absent a relevant
conviction, there is never complete certainty of success) then no confiscation order can be
made. Thirdly, the Commission must calculate the risk of being subject to an adverse costs
order if it does not accept an offered settlement. For instance, if the Commission fails to
accept a settlement offer in high risk litigation, then the defendant may ultimately secure a
better result than if the Commission had settled. Finally, the Commission tends to settle
proceedings in cases where the confiscation order is likely to be for an amount larger than
the defendant can pay after contested litigation. In short, the Commission settles matters
because this is the best way to maximise the overall monetary return to the State and,
commensurately, the best way to maximise the overall deterrent effect of the confiscation
regime.
In a few cases, the matter cannot be settled and must proceed to a contested hearing on the
available evidence. Again, the result will be an order or orders of the Court disposing of the
proceedings.
Later, any enforcement action needed to give effect to any Court orders will be taken. In the
case of AFOs, the NSW Trustee and Guardian has the function of selling the assets and
remitting the proceeds to the Treasury. In the case PAOs and UWOs, the Commission has
the role of obtaining payment. In most cases, the debt due to the Crown is secured by real
estate or other collateral, and interest accrues.
The Commission’s careful analysis of all relevant factors in each matter is basis for the steps
it takes during the proceedings. This analysis underpins the decision to commence
proceedings, settlement negotiations, preparation for hearings and so on. The most notable
factors considered by the Commission include:
1) the Commission’s prospects of proving a relevant offence to the civil standard;
2) the total assets available to satisfy any order against the defendant;
3) the likely costs of litigation;
4) the extent to which those litigation costs would be met out of restrained funds that
would otherwise be confiscated;
5) the evidence that particular interests in property were lawfully or unlawfully acquired;
6) the evidence available to demonstrate that the proceeds have been derived from
illegal activity and to prove the amounts so derived; and
7) the prospects of the defendant or someone else securing relief from confiscation on
the grounds of hardship or other possible grounds.
Throughout the process, but subject to the requirements of the particular cases, the
Commission makes use of various statutory provisions that enable it to obtain relevant
evidence, information and material.
47



















Use of statutory information gathering powers
The powers available to the Commission pursuant to the former 1985 Commission Act and
2102 Commission Act, and statistics on their use, are given above. The statistics for those
issued at the request of the FID (being a subset of the figure above, rather than in addition to
those figures) are as follows:
Summons and Notices issued No. issued
Summons (s. 16 of the 1985 Commission Act) 0
Summons (s. 24 of the 2012 Commission Act) 0
Notice to produce (s. 10 of the 1985 Commission Act) 3
Notice to produce (s. 28 of the 2012 Commission Act) 13
Notice to produce (s. 17 of the 1985 Commission Act) 374
Notice to produce (s. 29 of the 2012 Commission Act) 984
The combined total number of notices issued under these provisions (1,374) during the
reporting period was a significant increase on the previous year (1,074) and was the highest
for any year that the Commission has kept records. The numbers of such notices issued is a
crude measure of the amount of investigative work put into confiscation matters during
2012–2013, both prior to, and post, commencement of proceedings under the CAR Act.
As discussed above, the CAR Act also provides for the Commission to apply to the Supreme
Court for the issuing of certain orders and warrants. The use of those provisions during the
reporting period was as follows:
Orders (and provisions of the CAR Act) No. sought No. granted
Examination orders (s. 12) 63 60*
Examination orders (s. 31D) 5 5
Statement of affairs orders (s. 12) 57 54

Statement of affairs orders (s. 31D) 5 5
Production orders (s. 33) 3 3
Search warrants (s. 38) 0 0
Search warrants (ss. 44 and 45) 25 25
Monitoring orders (s. 48) 0 0
* Three of the applications were deferred; none of the applications was refused.
† Three of the applications were deferred; none of the applications was refused.
48





















Referrals, commencements and restraining orders
Referrals to the Commission (in particular, its FID) for consideration of confiscation action
come from a variety of sources, including the NSW Police (the dominant source), joint
investigations between the Commission and the NSW Police, and joint investigations
between the Commission, NSW Police and Commonwealth agencies such as the AFP, the
ACC, and the ACBPS. All referrals are assessed but only some are determined to be
suitable for confiscation action. During the reporting period, 480 people were the subject of
referral and assessment. This figure was slightly lower than the 513 in previous reporting
period.
It is perhaps significant that the number of referrals that have resulted in the commencement
of proceedings decreased markedly in the last quarter of the reporting period. It is too early
to judge whether this is a temporary or cyclical change or part of a longer term trend.
However, there is little doubt that the criminal community is becoming increasingly aware of
confiscation legislation and is taking steps to avoid its impact.
The means employed to do this include:
1.   spending in ways that do not give rise to ownership of assets that can be confiscated,
such as renting real estate and leasing luxury cars and boats rather than buying them;
2.   using false names or the names of associates to hold and disguise property
ownership;
3.   employing more complex financial structures so that the criminal distances himself or
herself from the ownership of property that may be subject of confiscation
proceedings; and
4.   sending property offshore as a way of removing it from the jurisdiction.
The Commission is increasingly seeing examples of all these strategies. In particular, over
the last few years there has been a significant growth in cash seizures from criminals, both
in number and dollar amounts suggesting that criminals consider it safer to keep wealth in
cash as it is easier to hide.
However, the decline in productive confiscation proceedings is likely also to result from other
factors:
1.   Criminal investigations in which the Commission is itself involved have, in the past,
been a lucrative source of confiscation matters. However, in recent times the
Commission has increasingly become involved in the investigation of matters that are
less likely to have a significant confiscation outcome. In particular, the investigation of
homicides and shootings, while very important, are far less likely to result in a
confiscation referral than, for example, an investigation into the supply of prohibited
drugs.
2.   Other jurisdictions are more effectively using their confiscation legislation. Historically,
the Commission has received confiscation referrals from Commonwealth agencies. As
the Commonwealth is developing a more effective approach to confiscation litigation
so have those referrals decreased.
3.   Funding for government agencies has become tighter. Both the Commission and the
agencies from which confiscation matters are referred, most particularly the NSW
49
























Police, are all subject to increasing budgetary pressures. These pressures inevitably
lead to direct and indirect impacts on areas of service delivery, including the delivery of
confiscation outcomes.
During the reporting period, the Commission commenced 74 confiscation cases, all under
the CAR Act and all in the Supreme Court. This was down from 86 in the previous reporting
period. In the cases commenced during the reporting period, 78 people were named as
defendants (most were from among the 480 referrals, but, because people referred in late
J une might be the subject of proceedings commenced in early J uly in any given year, there
is not a precise correlation).
The Commission applied for a total of 61 restraining orders during the reporting period. Sixty
of them were sought ex parte and one of them was sought with the consent of the
defendant. The restraining order sought with the consent of the defendant was in respect of
a proceeding that had been commenced prior to the reporting period. The 60 ex parte
applications were all successful.
Although in most cases a restraining order will be sought at the time the proceedings are
commenced, there are cases in which it is appropriate for the Commission to make an
application for a confiscation order without applying for a restraining order. Sixteen matters
were commenced during the reporting period without an application being made for a
restraining order. In the vast majority of such cases, the reason for not seeking a restraining
order will be that the defendant is not, for some reason even though there is no restraining
order, in a position to deal with the interest or interests in property that would otherwise be
the subject of an application for a restraining order. The most common example of this is
situations in which the defendant’s only significant interest is an item of property, most
commonly cash, that police have seized. In these cases, police hold the property pursuant to
non-CAR Act legislation. Another common example is situations where a restraining order
has been obtained in respect of a defendant’s jointly owned interest in real property,
generally their spouse. During the course of the proceedings, the Commission may
determine there is a basis for seeking a confiscation order against that other person as well
as the original defendant.
An estimated total of $32.5 million worth of property was the subject of proceedings
commenced during the reporting period. (In each case, the Commission makes an estimate
of the value: the total of the individual estimates was $32,474,697, but this particular number
conveys a false impression of precision.) The Commission’s estimate of value is the
estimated net value of the defendants’ interests in property after deducting the value of any
debts that were secured over the restrained property. The Commission emphasises that this
valuation is of limited value. The value of a person’s interest in property at the start of
proceedings does not necessarily match the value of any confiscation order made against
the person. Nor is it a reflection of the extent of the proceeds the person has derived from
crime or of the value of the person’s illegally acquired property. A far more useful indicator of
the value of the Commission’s confiscation work is the realisable value of the confiscation
orders made, which is discussed below.
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This point is well illustrated in the following table, which provides a means for comparison of
these statistics with the estimated realisable confiscation orders for the reporting period and
the previous reporting period.
2011–12 2012–13
Estimated value of property subject of proceedings $53 million $32.5 million
Estimated value of realisable confiscation orders $14,488,267 $19,541,008
In each case in which a restraining order was granted, the Commission was required, on
behalf of the State, to give an undertaking as to damages. The Commission was not sued on
its undertaking in any case during the reporting period.
Living and legal expenses
The CAR Act makes allowances for applications for reasonable living and legal expenses.
People whose interest in property are restrained can make an application to the Court for an
order varying the restraining order to allow for reasonable living expenses (of the defendant
or his or her dependents) and/or reasonable legal expenses (of confiscation or criminal
proceedings) to be met.
Applications pursuant to subs. 10B (3) were made and determined as follows:
Result type
Living
expenses
Legal
expenses
Orders made by consent * 1 38
Application for order dismissed by consent 0 0
Application for order granted after contested hearing 0 0
Application for order dismissed after contested hearing 1 1
Total 2 39
*   21 of these orders were made by consent as part of the finalisation of the confiscation
proceedings by negotiated settlement.
Confiscation orders
In the 74 cases begun (against 78 defendants) in the reporting period, the Commission
applied for 79 confiscation orders: three AFOs, 52 PAOs, 22 UWOs, and two orders
forfeiting property that was not disclosed in a warranty provided by the defendant in either
proceedings. Sixteen of the applications made for confiscation orders were made without an
application being made at the same time for a restraining order. The number of confiscation
orders exceeded the number of defendants because in one matter the Commission
commenced proceedings by seeking both an AFO and a PAO against the defendant when
the proceedings were commenced.
CAR Act proceedings are finalised by one of two methods: the Court makes a confiscation
order; or the Court makes an order dismissing the Commission’s application for a
confiscation order. In both cases, the orders may be made by consent or as a result of a
contested hearing.
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When proceedings are finalised by consent the defendant is required to provide a warranty
as to his, her or its interests in property as at the date of the signing of the final consent
orders. If the Commission subsequently discovers that the defendant failed to disclose an
interest in property, the provisions found in Division 2A of the CAR Act provide for the
forfeiture of the undisclosed interest. If the defendant disposed of the undisclosed interest
before it was discovered, the provisions allow for an order to be made requiring the
defendant to pay to the Treasurer an amount equal to the value of the undisclosed interest.
During the reporting period, three orders (being the orders mentioned above) were made in
respect of a breach of warranty with an estimated recoverable value of $128,000. Each of
these orders was made by consent.
Statistics for the reporting period in relation to these various outcomes are as follows:
Outcome By consent
Contested
hearing
Total
AFOs made 35 1 36
PAOs made 36 0 36
UWOs made 2 1 3
Order for breach of warranty 3 0 3
Proceedings finalised by confiscation order
application(s) being dismissed or proceedings
discontinued
11 0 11
Totals disposals 87 2 89
It can be noted that the total number of disposals—89—differs from the total number of
applications—79—because the disposals, in part, related to applications made before the
reporting period. Some of the applications made during the reporting period will not be
finalised until later.
While three UWOs were made during the reporting period, the court ordered that the value
of one of those orders, made as a result of a contested hearing, be assessed at a later date.
The defendant in this matter, which is the subject of the case study below, was also the
subject of an AFO. Under this order, most of the defendant’s interests in property were
forfeited to the Crown. Given this, it is possible that the Commission may not seek to have
the value of the UWO quantified as the resulting debt would be unlikely to be collectable.
The two other UWOs had a total estimated realisable value of $1,250,000. A further 17
matters were finalised in which the Commission had commenced the proceedings by
applying for an UWO but the proceedings were resolved with other orders. When those 17
proceedings were finalised the defendants agreed to the making of either of the other two
types of confiscation orders (with the applications for the UWOs being dismissed). The total
estimated realisable value of these 17 confiscation orders was $6,299,764.
Only one matter was finalised by contested hearing. That matter is the subject of the case
study at the end of this chapter.
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The number of confiscation orders, and their estimated realisable values, with reference to
the agencies that referred the matters to the Commission for assessment and possible
proceedings, were as follows:
Source of referral
Number of
Orders
Value
$
NSW Police 64 12,835,989
Commission–NSW Police–AFP–ACC–ACBPS joint investigations 5 3,987,085
Commission–NSW Police joint investigation 7 1,862,529
Commission–NSW Police–AFP joint investigation 1 730,000
NSW Police–ACC–WA Police joint investigation 1 125,405
Total 78 19,541,008
By reference to the type of order, the estimated realisable values of the various confiscation
orders were:
Type of order No. of orders Est’d realisable value ($)
AFO 36 12,597,308
PAO 36* 5,565,700
UWO 3* 1,250,000
Breach of warranty 3 128,000
Total 78 19,541,008
*   As discussed above, one UWO was made but that amount has yet to be assessed. This order is
included in the 78 reported in the two preceding tables above.
‘Estimated realisable value’ of confiscation orders
As just noted, during the reporting period the Commission obtained 78 confiscation orders
having ‘estimated realisable values’ totalling $19,541,008.
Given that the principal objects of the CAR Act include the recovery of the proceeds of illegal
activity and the recovery of wealth that is not lawfully acquired, the Commission considers
reporting the estimated realisable value of confiscation orders made during the year provides
the best measure of the results of confiscation proceedings.
The Commission considers that the value (or estimated value) of interests in property which
are subject to restraining orders is a much less significant and valuable measure of the
Commission’s confiscation work. Indeed, without the exercise of due care it could be a very
misleading measure of the Commission’s work and could produce an inflated impression of
the Commission’s success.
The nominal value of confiscation orders is similarly prone to giving a misleading and inflated
impression of the Commission’s success. In certain cases, most commonly those that are
fully litigated rather than settled, a PAO or UWO will be made that exceeds the value of the
defendant’s interests in property. In such cases it is considered unlikely that the balance of
the proceeds of the confiscation order will ever be collected and so only the estimated
realisable portion is reported.
Estimates of the realisable value of a defendant’s estate are made when matters are
referred to the Commission for consideration of commencement of proceedings: the
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estimate is one factor that informs the decision. When aggregated, the estimates can be
used to produce an estimate of the realisable value of a set of restraining orders.
Estimates of the realisable value of confiscation orders have the following main components.
In the case of PAOs and UWOs, the first component is the amount specified in the Court’s
order. If the defendant is estimated to have sufficient property interests that are liquid or can
be liquidated then the estimate equals the Court’s order, and the estimate is reliable both in
its precision and in the likelihood that the amount will be realised. If the defendant is not
thought to have sufficient property interests to cover the debt then the Commission’s
estimate of the realisable value of the PAO or UWO is its estimate of the realisable value of
the available property interests: the estimate is necessarily somewhat less certain than in the
earlier-mentioned type of case. In the case of an AFO in respect of money, the estimate of
the realisable value of the order is usually reached simply and is the same as the amount of
money. In the case of interests in property that are forfeited and then have to be sold (with
the proceeds then going to the Treasury), the estimate again must necessarily be less
certain: the asset is taken into the control of the NSW Trustee and Guardian for disposal
(e.g. by auction): not only is an estimate less likely to be accurate, but the delay between the
making of the estimate and the disposal of the asset can affect the ultimate accuracy of the
estimate.
An attempt to compare the (estimated realisable) value of restraining orders with the
(estimated realisable) value of the confiscation orders later made—especially on a general
scale (e.g., by reference to all of the cases completed in a given year) can produce only a
very broad indication of the comparison. Such a comparison is built on the uncertainty and
imprecision in both of the figures being compared. Moreover, restraining orders are usually
made in terms that apply not merely to specific, identified interests in property but to all a
defendant’s interests in property, whether or not the Commission has discovered them yet.
Accordingly, restraining orders (in the typical case) necessarily apply to a larger set of assets
than AFOs (the CAR Act does not allow an order for the forfeiture of all of a person’s
interests in property—only specified ones). Furthermore, the total wealth of a defendant
(which will be restrained by an all interests restraining order) will not necessarily be wholly
unlawfully obtained and may be larger than the total of proceeds derived by the defendant
from illegal activity. It should also be noted that the values of assets can change during the
time proceedings are on foot.
Exclusion orders and appeals
When the Commission resolves confiscation proceedings by consent, the terms of
settlement usually include a term that the defendant will not challenge the making of the
confiscation order. However, in some cases the defendant will consent to the making of the
confiscation order but will preserve his or her right to make an application for relief from the
effect of the confiscation order.
Most commonly this latter situation arises where the Commission has applied for an AFO
and the defendant has been convicted of an offence that satisfies the definition of a serious
crime related activity. In such cases the making of the AFO cannot be defended. However,
the defendant may consider that he or she can prove that all, or a portion of, the forfeited
interest in property was acquired from legitimate sources.
In last year’s annual report it was reported that there was only one example of this type of
matter. Similarly, in the current reporting period there was again only one such example.
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This case involved a defendant who had, during 2011–12, consented to the making of both
an AFO with an estimated value of $200,000 and a PAO in an amount that was to be
assessed at a later date. The terms of these orders provided for the defendant to make,
within six months of the AFO being made, an application to exclude from the operation of
that order all or a portion of the interest in property if he could prove that it was not illegally
acquired. An exclusion application was made within the six-month period and the
proceedings were finally settled by the parties’ agreeing to the AFO being set aside and the
PAO being quantified in the amount of $92,000. This represented a net reduction of
$108,000 in the estimated realisable value of the proceedings.
During the reporting period another case, which is the subject of the case study at the end of
this chapter, was also resolved on the basis that an AFO was made but the defendant had
six months to apply for an exclusion order. The defendant did not do so.
Costs
A consequence of the Commission’s resolving almost all proceedings by negotiated
settlement is that it is rare that an order is made that the Commission pay the defendant’s
costs of the proceedings or that the defendant pay the Commission’s costs of the
proceedings. No orders were made during the reporting period for the Commission to pay a
defendant’s costs.
Within proceedings, the Commission will often defend applications made under s. 10C of the
CAR Act, or for living expenses or legal expenses. Although an order for the payment of
costs may be made in such matters it is often the case that whether or not the amount is
actually paid will depend on the outcome of the substantive proceedings.
The Commission employs lawyers and paralegals who work principally on confiscation
litigation. Those legal staff draft legal documentation and appear for the Commission to
make most applications for restraining orders and consent orders. In more complex cases,
counsel will occasionally be briefed to make applications for restraining and consent orders.
During the reporting period, counsel were briefed to conduct examinations of defendants
pursuant to subs. 12 (1) and s. 31D of the CAR Act, and counsel is briefed to appear for the
Commission when matters are taken to final hearing or when applications for release of
living expenses or reasonable legal expenses are defended by the Commission.
The following table reports issues relating to legal costs:
Number of costs orders in favour of the Commission 2
Estimated realisable value of those costs orders* $70,000
Number of costs orders in favour of the defendant 0
Amount paid in respect of that costs order N/A
Total cost of briefing outside counsel in the reporting period $237,294.50
Total cost of briefing outside counsel as percentage of realisable orders

1.21%
*   Both of these matters are the subject of appeals. Neither of the costs orders have been assessed
but on assessment would be expected to total at least this amount.
†   The Commission bears the full cost of counsel fees. The full amount realised from confiscation
orders goes to the Treasury. This figure is less than half the figure for the last reporting period
(which was 2.58%).
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Comparisons with previous two years
The following table sets out figures for the reporting period and the previous two years in
respect of several key measures:
Measure 2010–11 2011–12 2012–13
CAR Act restraining orders 106 82 61
Confiscation of Proceeds of Crime Act 1989 restraining
orders
6 0 0
Total no. of restraining orders 112 82 61
Confiscation orders sought without a restraining order 11 15 16
AFOs made 49 27 36
Est’d realisable value of AFOs 13,563,849 6,460,109 12,597,308
PAOs made* 51 40 36
Est’d realisable value of PAOs 7,425,300 7,873,963 5,565,700
UWOs made 0 2 3
Est’d realisable value of UWOs 0 154,195 1,250,000
Orders for breach of warranty (‘BOWs’) 0 0 3
Est’d realisable value of BOWs 0 0 128,000
Total no. of confiscation orders* 100 69 78
Total est’d realisable value of confiscation orders 20,989,149 14,488,267 19,541,008
Production orders (CAR Act) 19 20 3
Search warrants (CAR Act) 49 39 25
Monitoring orders (CAR Act) 0 0 0
*   One UWO was made but that amount has yet to be assessed. This order is included in the 78
reported in the two preceding tables above.
Sharing with other jurisdictions
NSW is able to share the proceeds of confiscation proceedings with other jurisdictions. This
occurs in situations where confiscation proceedings under the CAR Act arise from a joint
investigation involving the Commission and law enforcement agencies of another
jurisdiction.
To facilitate the sharing of proceeds with other jurisdictions, the Commission makes a
recommendation to the Minister for Police and Emergency Services as to the matters and
the proportions of the recovered amounts that should be shared. In the event that the
Minister agrees with the recommendation, the Minister makes the recommendation to the
Treasurer. If the Treasurer agrees, he issues a Direction pursuant to subs. 32 (3) (d) of the
CAR Act that the amount be shared.
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Since the sharing arrangements commenced in April 2009, the Treasurer has approved the
payment of approximately $2.4 million to the Commonwealth pursuant to the Direction. No
amounts have been paid to other jurisdictions. NSW has received one payment as a result of
sharing arrangements: a payment of $199,478.42 arising from a joint investigation between
NSW, the Commonwealth, and Victoria in the 2009 financial year.
Case study
Matter of Mr G
The case of Mr G provides a salutary lesson in the power of the CAR Act to confiscate the
interests in property of a person in a variety of circumstances.
Mr G first came to the attention of the Commission in 1998 when he was 56 years’ old. NSW
Police records indicate Mr G was suspected of living a long life of crime, mainly involving the
supply of heroin. Although Mr G had long been suspected of being a drug supplier he had
only been charged on a few occasions. However, in September 1998 NSW Police charged
Mr G with drug supply offences after police stopped and searched the car he was driving
and located approximately 5 grams of heroin and 14 grams of methylamphetamine.
At the time of this arrest, the ATO was pursuing Mr G. The ATO had raised income tax
assessments against Mr G requiring him to pay about $1m in tax and penalties. The ATO
were taking proceedings to bankrupt Mr G, who had little property in his own name.
At the time NSW Police arrested Mr G, they executed a search warrant in the house in Five
Dock in Sydney where he lived with his mother. During the search, NSW Police found more
than $130,000 in cash in a wardrobe in his mother's bedroom. Mr G’s mother claimed that
the cash was her life savings and that her husband had left her most of it when he died
several years earlier. Despite being on an old age pension, Mr G’s mother was also found to
have accumulated about $50,000 in bank accounts.
In addition to this, a property was located in the Sydney suburb of Beecroft which was
ostensibly owned by a Mr D. Mr D was also the registered owner of a Mercedes motor
vehicle. The owner of these two items of property could not be found, despite Mr G's
assertions that Mr D was a real person.
The Commission’s investigations provided sufficient evidence to commence CAR Act
proceedings against Mr G's mother and Mr D based on a suspicion that Mr G's mother's
interest in the cash and funds in bank accounts, and Mr D’s interest in the house and the car
were derived from Mr G's serious crime related activities. The Commission sought, and was
granted, restraining orders in respect of those interests in property and applications were
also made for AFOs in respect of those interests in property.
Prior to Mr G's criminal trial, the Commission made an application for summary judgment on
its claim for the AFOs by proving, on the civil standard, that he had committed the drug
offence. The application was successful and in August 1999 the AFOs were made. The
value of the interests in property that were forfeited totalled about $750,000.
Mr G came to the attention of the Commission again when he was the subject of another
investigation into his involvement in the supply of heroin. On 12 December 2001, NSW
Police executed another search warrant on the premises in Five Dock where he was still
living with his mother. NSW Police did not locate any drugs at the premises and Mr G was
not charged.
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The day after the execution of this search warrant, one of the occupants of the neighbouring
property was watering his garden when he noticed a bag on the ground near the fence. On
opening the bag, the neighbour saw that it contained a large amount of cash. The neighbour
reported it to NSW Police who seized it. The bag contained $391,900.
The circumstances under which that cash was found and other matters again provided the
Commission with sufficient grounds to suspect that the cash was derived from Mr G’s
serious crime related activity. The Commission commenced proceedings and successfully
applied for an order restraining any person from dealing with the interest of the true owner of
the seized cash and also making an application for an AFO in respect of the true owner’s
interest in it.
On 17 May 2002, the Commission successfully applied for summary judgment on its claim
for the AFO and the interest of the true owner of cash was forfeited to the Crown.
Interestingly, since the 1998 proceedings Mr G had been tried for and acquitted of the drug
offences that the Commission had proved on the civil standard in the 1998 proceedings.
Despite this, it was this offence that the Commission again proved on the civil standard to
ground the AFO in respect of the $391,900.
It seems that between 2002 and 2010 Mr G continued to be involved in the supply of heroin.
In 2010, NSW Police conducted an extensive investigation into Mr G’s activities which
provided evidence of his continued involvement in the ongoing supply of heroin, mainly from
his mother’s residence in Five Dock, to multiple users in small quantities. At the culmination
of this investigation in September 2010, NSW Police arrested and charged Mr G with a large
number of drug supply offences. Again, a search warrant was executed on the residence
where he and his elderly mother still lived. This search warrant resulted in the seizure of
$666,000 in cash, 1.8 kilograms of gold, a large amount of jewellery and 21 watches.
Despite accumulating a significant amount of wealth, in J uly 2009 Mr G had been arrested
and charged with larceny (shoplifting). NSW Police alleged that Mr G had stolen a variety of
hardware items, with a total value of less than $430, from a large hardware store. In April
2010, Mr G was convicted of this larceny offence.
After his arrest for the drug offences in 2010, the Commission commenced confiscation
proceedings against Mr G by filing a summons seeking a UWO.
In March 2013, the Commission successfully applied for summary judgment on its claim for
the UWO, of an amount to be assessed at a later date, and also for an AFO order in respect
of the items seized. The property that was subject to the forfeiture order had a total value
estimated to be more than $800,000. Rather than the drug offences the confiscation orders
were grounded on proof of the shoplifting offence. So on one analysis it can be seen that for
the sake of trying to save himself $430, Mr G ended up costing himself more than $800,000.
Mr G had until September 2013 to file an exclusion application in relation to the interests in
property that were forfeited, but he did not. The Commission will seek to quantify the value of
his unexplained wealth.
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This case clearly illustrates the following:
1.   The CAR Act can be used very effectively to confiscate property of criminals that is
held in other people’s names. Of the $2 million confiscated that had been derived from
Mr G’s criminal activity only $800,000 was confiscated from him directly.
2.   The distinction between the criminal and civil standard of proof is important for the
effectiveness of confiscation legislation. It can be seen from this case that if the
Commission had to rely on Mr G being convicted of an offence that constituted a
serious crime related activity the amount confiscated in these proceedings would have
been $1.2 million less than it actually was.
3.   Even street level drug supply can result in the criminal deriving significant proceeds of
crime. The Commission has confiscated approximately $2 million of property derived
from Mr G’s criminal behaviour.
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DISSEMINATION OF INTELLIGENCE AND INFORMATION
One of the functions of the Commission is to liaise with other agencies. Throughout the
period, the Commission disseminated information and intelligence to its partner agencies
pursuant to the 1985 Commission Act, the 2012 Commission Act, the TIA Act, and the
SD Act.
Dissemination is not required in circumstances where the information or intelligence is being
communicated from one staff member to another and, given that much of the Commission’s
work is conducted pursuant to task force arrangements in which police and others are made
members of the staff of the Commission, the Commission’s dissemination figures do not
include a significant amount of intelligence passed to police and others.
Recipients of intelligence and information included the ACC, the AFP, NSW Police, South
Australia Police, Victoria Police, Queensland Police, Western Australia Police, the PIC, the
ATO, the ACBPS, Austrac, Corrective Services NSW, the Crown Solicitor, the NSW Attorney
General and Minister for J ustice, the Office of the Director of Public Prosecutions, the
Australian Commission for Law Enforcement Integrity, the Department of Immigration and
Citizenship, the Queensland Crime and Misconduct Commission, the Australian Securities
and Investments Commission, and ASIO.
The number and types of disseminations are set out below:
Statutory Provisions Disseminations
1985 Commission Act (s.7) 189
2012 Commission Act (s.13) 451
TIA Act (s.68) 152
SD Act (subs. 40 (4)) 2
Total 794
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ACCOUNTABILITY AND SCRUTINY OF THE COMMISSION
The Commission is subject to a range of scrutiny and accountability measures. These
include measures common to most public sector agencies, such as maintaining an internal
audit and risk management capability. The Auditor General, the Commonwealth
Ombudsman, and the NSW Ombudsman also scrutinise aspects of the Commission’s work.
The Commission is also subject to the supervision of its Management Committee, the
Department of Attorney General and J ustice, the Ministry for Police and Emergency
Services, and the Treasury. It is also subject to, or implements where applicable, policies
and other measures emanating from those bodies, the Department of Premier and Cabinet,
and others. Scrutiny is also undertaken by the Parliament through its Budget Estimates
Committee. In addition to these generic measures, the Commission is, along with the NSW
Police, subject to the PIC’s scrutiny and investigation.
The 2012 Commission Act has introduced additional measures, including an independent
Chairperson of the Management Committee, expansion of the jurisdiction of the PJ C, and an
Inspector of the Commission.
Governance
During the reporting period, the Commission continued to strengthen its approach to
corporate governance. The recommendations arising from the Patten Inquiry formed the
basis for the work undertaken, as did additional requirements arising from legislative
obligations and a number of government memos and circulars.
In response to the Patten Inquiry and other issues, the Commission created a Corporate
Governance Unit equipped with staff focussed on reviewing and creating policies,
procedures and manuals to assist the staff of the Commission in carrying out their duties.
These documents relate to both corporate and operational matters with final documents
being made available to staff. This work is continuing with the expectation that a full suite of
material will be finalised in the near future.
Our approach to risk management continued to mature with additional mitigation strategies
identified and employed. Risks have been reviewed at the enterprise level as well as those
risks specifically relating to fraud and corruption. The Commission will continue to manage
and monitor these risks in accordance with the Commission’s Risk Management Policy.
Several significant internal audits occurred across key corporate and operational areas of
the Commission during the reporting period. An ITPP undertook the major audits. The audits
helped to further identify opportunities to strengthen internal controls.
A legislative compliance review was also undertaken providing an overarching framework for
ensuring that legislative obligations continue to be met. The register of obligations will
continue to be updated as legislative updates are received.
The Governance Manager started at the Commission in May 2013, and as a result further
elements of the Commission’s corporate governance framework will continue to be
enhanced in the future.
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Ethics Committee, Code of Conduct and ethical culture
Given the statutory powers available to the Commission it is important that it maintains an
ethical culture. The Commission requires compliance with its Code of Conduct and
maintains an Ethics Committee, which meets to receive and consider complaints and
suggestions from staff, and from the Committee members, in relation to ethical issues.
The Commission, through the Commissioner and the Assistant Commissioners, actively
promotes an ethical culture. The Commission reinforces the importance of compliance with
ethical standards through staff seminars and at operational and other meetings.
Internal audit and risk management
Treasury Circular 09-08 requires the Commission to comply with Treasury Guidelines and
Policy Paper TPP 09-05 Internal Audit and Risk Management Policy for the NSW Public
Sector, which in turn is to be read in conjunction with Department of Premier and Cabinet
Circular C2009-13, headed Prequalification Scheme: Audit and Risk Committees.
Accordingly, the Commission has an Internal Audit and Risk Committee (‘the IARC’), a Chief
Audit Executive, an Internal Auditor, and it has instruments including a Charter for the IARC,
an Internal Audit Plan, an Enterprise Risk Management Framework and an Enterprise Risk
Management Register (‘ERM Register’).
During the reporting period, the Commission continued to retain an ITPP to work in co-
ordination with the Commission’s Internal Auditor and to conduct audits of critical and high
risk areas identified in the Commission’s three year audit plan (‘the Audit Plan’). The Audit
Plan and the Commission’s ERM Register had been developed in the previous reporting
period as part of the Commission’s Enterprise Risk Management Assessment. The ERM
Register and the Audit Plan enabled the Commission to identify areas where both the ITPP
and the Commission’s Internal Auditor would conduct audits.
The ERM Register forms an integral part of the Commission’s overall risk management
approach and enables the Commission to ensure that appropriate risk mitigation strategies
are implemented in identified risk areas. The Commission’s Risk Management Policy has
been updated to reflect the Commission’s maturing approach to risk management and to the
support the process of mitigating risks at all levels of the Commission’s activities.
The ITPP continued to work closely and effectively with the executive officers and staff of the
Commission during the reporting period. The ITPP facilitated a Fraud and Corruption Risk
Assessment. This was delivered in the reporting period and enabled the Commission to
implement various strategies to mitigate a number of operational risks.
The ITPP conducted audits across a number of corporate support functions including
Workplace Health and Safety, Financial Procurement Expenditure, Revenue and Financial
Management, Human Resource Management and ICT Network and Application Security. All
reports were delivered during the reporting period, reviewed by Commission Management
and referred to the Commission’s IARC for review and appropriate notation. The
Commission’s Internal Auditor conducted audits of the Commission’s accesses to external
databases and reported the outcomes to the IARC through the Commissioner.
The IARC continued to operate during the reporting period.
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The Commission’s IARC was established to provide advice and support to the
Commissioner by:
  reviewing all aspects of the internal audit and control function within the Commission,
including assessing the effectiveness of the function;
  reviewing the adequacy and quality of the internal control structure;
  fulfilling the legal requirements of s. 11 of the Public Finance and Audit Act 1983;
  reviewing the Commission’s financial statements and financial reporting generally;
  assessing the performance of the Commission’s financial and operational
management;
  reviewing the timeliness and appropriateness of management responses to audit
reports;
  reviewing and assessing all aspects of the Commission’s internal audit function, from
the approval of the charter through to the review of audit results; and
  monitoring the effectiveness of risk management strategies and internal audit results.
Although the IARC reports to the Commissioner, its role at the Commission is strictly
advisory. The Commissioner is under no obligation to accept any advice from the IARC as
the Commissioner has overall responsibility and accountability for the management of the
Commission.
During the reporting period the Commission’s IARC comprised Mr Peter Whitehead as the
Independent Chair of the IARC and Mr Andrew Koureas (the Executive Director, Corporate
Services at the ICAC) whose position was continued by a ministerial exception through to 30
J une 2013, as the other independent member.
The role of non-independent member of the IARC was held by the Commission’s Executive
Manager during the period 1 J uly 2012 to 25 J une 2013 and by the Commission’s Director
(Financial Investigations) from 26 J une 2013 until the end of the reporting period.
A number of permanent invitees continued to attend the IARC meetings during the reporting
period. They included the Commissioner, the Governance Manager in the capacity as Chief
Audit Executive, the Internal Auditor, the Commission’s Finance Manager, representatives of
the ITPP, and representatives of the Audit Office.
The Commissioner invited the Inspector of the Commission to the final IARC meeting held
during the reporting period.
The IARC met on four occasions during the reporting period and all members of the IARC
attended all four meetings.
The key achievements of the IARC during the reporting period were:
  approving the Internal Audit Plan and increased audit activity arising from a
comprehensive risk assessment;
  reviewing all aspects of the internal audit and control function within the Commission,
including:
‐ enhancing the Commission’s understanding of protocols for responding to audit
reports and recommendations;
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‐ enhancing the effectiveness of tracking compliance with internal audit
recommendations;
‐ revising policies arising from audit recommendations; and
‐ remedial progress on issues raised in the Management Letter by the Audit Office;
  reviewing the Commission’s financial position quarterly and its annual financial
statements, noting the permanent invitee status of the Commission’s Finance Officer,
and Audit Office representative at committee meetings; and
  monitoring the effectiveness of audit and risk management strategies for compliance
with:
‐ Treasury Guidelines TPP 09-05;
‐ Shared arrangements guidelines; and
‐ Treasury Risk Management Toolkit.
The Commissioner has executed an Internal Audit and Risk Management Attestation as
required by TPP 09-05. This attestation can be found at Appendix H.
Other areas of involvement for the Internal Audit and Risk Committee
During the reporting period the Commission sought to appoint a person to the position of
Governance Manager. A key responsibility of the Governance Manager’s position was to
hold the function of the Commission’s Chief Audit Executive. Core Requirement 1.3.4
required the Commissioner to consult or involve members of IARC when appointing a Chief
Audit Executive. The IARC Chair was a member of the Commission’s selection panel for the
Governance Manager position.
External audit
NSW Ombudsman
The NSW Ombudsman conducts regular inspections or audits of the Commission’s
documents and operations. In particular, the NSW Ombudsman conducts inspections and
audits and prepares reports pursuant to:
  subs. 11 (1) of the Telecommunications (Interception and Access) (New South Wales)
Act 1987;
  Part 5 of the Law Enforcement (Powers and Responsibilities) Act 2002 (although no
inspections regarding the Commission occurred during the reporting period because
no applications were made during the reporting period for covert search warrants);
  subs. 49 (1) of the Surveillance Devices Act 2007 (the report is publicly available); and
  Part 4 of the LECO Act (the report is publicly available).
Commonwealth Ombudsman
The Commonwealth Ombudsman audits the Commission’s compliance with requirements
contained in the Telecommunications (Interception and Access) Act in respect of obtaining
access to stored communications. The most recent audit report on access to stored
communications concerns 2011–2012. The Ombudsman’s inspection for the purpose of an
audit for 2012–2013 occurred on 19 August 2013.
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External oversight of the Commission
Inspector of the Crime Commission
The Hon. Graham Barr QC commenced in the role of the first Inspector of the Commission
on 2 May 2013.
The Inspector of the Commission has responsibility for:
  auditing the operations of the Commission for the purpose of monitoring compliance
with NSW laws;
  dealing with complaints of abuse of power, impropriety and other forms of misconduct
on the part of the Commission or officers of the Commission;
  dealing with conduct amounting to maladministration, including, but not limited to,
delays in the conduct of investigations and unreasonable invasions of privacy by the
Commission or officers of the Commission; and
  assessing the effectiveness and appropriateness of the procedures of the Commission
relating to the legality or propriety of its activities.
The Inspector of the Commission has extensive powers. The Inspector of the Commission
can exercise these powers on his own initiative, at the request of the Minister, in response to
a complaint made to the Inspector or in response to a referral by the PJ C or a government
agency or member of a government agency. The Commission or the Management
Committee may also refer matters to the Inspector for investigation.
The Inspector of the Commission:
  may investigate any aspect of the Commission’s operations or any conduct of officers
of the Commission;
  is entitled to full access to the Commission’s records and may take or have copies
made of any of them;
  may require Commission officers to supply information or produce documents or other
things relating to the Commission’s operations or conduct of Commission officers;
  may require Commission officers to attend before the Inspector to answer questions or
produce documents or other things relating to the Commission’s operations or any
conduct of officers of the Commission;
  may investigate and assess complaints about the Commission or officers of the
Commission;
  may refer matters relating to the Commission or officers of the Commission to other
public authorities or public officials for consideration or action; and
  may recommend disciplinary action or criminal prosecution against officers of the
Commission.
The Commission has endeavoured to familiarise the Inspector with the operations and
procedures of the Commission. To this end, the Inspector has attended meetings of the
Management Committee and the IARC. The Commission will continue to assist the Inspector
in the discharge of his functions.
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Parliamentary Joint Committee on the Office of the Ombudsman, the Police Integrity
Commission and the Crime Commission
Since the commencement of the 2012 Commission Act, the Commission has fallen under
the oversight of the PJ C.
The functions of the PJ C are:
  to monitor and review the Commission, the Management Committee, and the
Inspector’s exercise of their functions;
  to report to both Houses of Parliament, with such comments as it thinks fit, on any
matter appertaining to the Commission, the Management Committee or the Inspector
of the Commission, or connected with the exercise of their respective functions to
which, in the opinion of the PJ C, the attention of Parliament should be directed;
  to examine each annual and other report of the Commission and of the Inspector of
the Commission and report to both Houses of Parliament on any matter appearing in,
or arising out of, any such report; and
  to inquire into any question in connection with its functions which is referred to it by
both Houses of Parliament, and report to both Houses on that question.
In December 2012, the PJ C advised that it had decided to conduct an inquiry into, and then
report on, the ways the performance of the agencies it oversights are measured and
reported. The Commission has provided the PJ C with written submissions, evidence from
the Commissioner and Asst. Commissioner Singleton. The Commission also invited
members of the PJ C to attend the Commission in order to be briefed on the Commission’s
operations and procedures.
As has been noted at several points throughout this Annual Report, the identification of
reliable performance indicators for the Commission is difficult due to the nature of the
Commission’s functions and the effect of variables beyond its control. The Commission will
continue to assist the PJ C in its inquiry.
Police Integrity Commission
In 2008, Parliament amended the PIC Act to provide the PIC with the function of
investigating allegations of misconduct against current and former officers of the
Commission. The PIC Act provides that any person may make a complaint to the PIC about
a matter that involves or may involve misconduct of a Commission officer and the PIC may
investigate any such complaint or decide that the complaint need not be investigated. The
Commissioner is under a duty to notify the PIC of any possible misconduct by an officer of
the Commission. The Inspector of the Commission has the right to make reasonable use of
the services of the staff or facilities of the PIC.
Previously, the PIC had an unrestricted capacity to target Commission officers and initiate
investigations of them. However, the 2012 Commission Act amended the PIC Act by the
insertion of subs. 23 (2A), which provides that the PIC must not conduct an investigation in
relation to the Commission where no particular Commission officer has been implicated and
no misconduct of a Commission officer is suspected, unless it has obtained the consent of
the Inspector of the Commission.
In October 2012, the Hon. J errold Cripps QC, Assistant Commissioner of the PIC, furnished
a report to each House of Parliament regarding its Operation Winjana which involved a PIC
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investigation into alleged criminal activity or misconduct by a former officer of the
Commission. Operation Winjana further examined the practices and procedures of the
Commission in the conduct of actions under the CAR Act. The Report indicated that the PIC
had commenced the investigation in 2008 and had held a number of private hearings in
2010 before conducting public hearings in September and October 2011.
Shortly after the PIC decided to conduct hearings in public, the Commission commenced
action in the Supreme Court seeking an order setting aside a particular decision of the PIC
to hold hearings and to limit the scope of the PIC investigation. The proceedings were
successful in having the particular decision set aside and limiting the scope of the
investigation (although not to the extent sought by the Commission). The PIC then took a
fresh decision to hold public hearings and public hearings duly took place. The then
Commissioner, the Assistant Commissioner, and all three directors (among others) were
called to testify at the public hearing. As reported previously, the Commission estimates that
the total cost, including staff salaries and fees to external lawyers, exceeded $2,000,000.
The PIC formed the opinion that the former staff member engaged in misconduct as a result
of the relationship between the staff member and a defence lawyer who had acted for clients
involved in confiscation proceedings brought by the Commission. The PIC concluded that
the staff member had given false or misleading evidence at a private hearing of the PIC.
The PIC also formed the opinion that the Commission’s past practice in confiscation
proceedings of seeking costs orders from the Supreme Court, and by consent, in amounts
not to the costs of the particular case, was not endorsed or authorised by the 1985
Commission Act or the CAR Act. The amounts concerned added up to about 15 per cent of
the Commission’s annual budget and overall did reflect the approximate costs of the
Commission referable to its confiscation proceedings (and without profiting). The
Commission did not agree with the PIC’s interpretation of the legislation. The Commission
had adopted the practice in 1998 after consulting with then Minister for Police and with the
subsequent approval of Treasury. The practice was an initiative of the Minister and the
Commission discontinued the practice in 2008 following further discussions with Treasury.
Since that time, the Commission’s legal and administrative costs in respect of CAR Act
proceedings have been met by an increase in the Commission’s budget.
The PIC also examined the Commission’s historical practice of consenting to orders for legal
expenses pursuant to subs. 10 (5) (b) of the CAR Act in matters where the defendant had
not met the requirements of s. 16A of the CAR Act. This section imposed restrictions on the
making of provision for the payment of legal expenses of a defendant. The decision of the
Supreme Court in Cook’s Case caused the practice to be discontinued but, as a result of an
amendment introduced by the 2012 Commission Act, the decision was overturned and the
previous practice has been resumed. The Commission’s Management Committee has
furnished the Commission with guidelines with respect to the negotiation by the Commission
of the terms of agreements regarding orders made by consent under the CAR Act.
67
























OTHER REPORTING ISSUES
Agreements with the Community Relations Commission
The Commission entered into a Memorandum of Understanding with the Community
Relations Commission in September 2006, to ensure that persons appearing at the Supreme
Court in respect of proceedings under the CAR Act are not disadvantaged as a result of
language difficulties. The agreement provides that the Community Relations Commission will
provide professional interpreting services on a fee-exempt basis to any person whose first
language is not English and who may experience difficulty in comprehending or fully
participating in proceedings under the CAR Act. The Commission continues to arrange
interpreting services on behalf of persons appearing at the Supreme Court in accordance
with the agreement.
Commission publications
The Commission produces one publication each year—its Annual Report. All the
Commission’s Annual Reports are available on the Commission’s website (see the inside
cover of this Report for website details) in electronic form. Hard copies of some years’
reports are also available.
Consultants
The Annual Reports (Departments) Regulation requires an annual report to include certain
information about ‘consultants’. The term is not defined in that Regulation or in its enabling
statute. However, both Premier’s Memorandum 2002–07 (‘Engagement and Use of
Consultants’), in its section headed ‘Describing the Nature and Purpose of Consultancies in
Agency Annual Reports’, and the ‘Guidelines for the Engagement and Use of Consultants’
issued under cover of Premier’s Memorandum 2004–17 ‘define’ ‘consultant’ as ‘a person or
organisation engaged under contract on a temporary basis to provide recommendations or
high level specialist or professional advice to assist decision-making by management.
Generally it is the advisory nature of the work that differentiates a consultant from other
contractors.’
In J une 2013, the Commission engaged a consultant to conduct an organisational review of
the Commission’s management structure. This review was finalised in the 2013–2014
financial year and will be reported on in the next reporting period.
Exemptions from reporting obligations
As a small department, the Commission has a number of triennial reporting obligations. The
Commission reported on its Disability Action Plan, Equal Employment Opportunity
outcomes, its Multicultural Policies and Services Plan, and Waste in its 2010–2011 Annual
Report. The Commission is next due to report on these issues in its 2013–2014 Annual
Report.
The Commission last reported on work health and safety (‘WH&S’) in its 2011–2012 Annual
Report. To align with the Commission’s other triennial reporting obligations, the Commission
will next report on WH&S in its 2013–14 Annual Report.
68











Privacy
The Commission continues to comply with its Privacy Management Plan. Statistics for
complaints and internal reviews under the Privacy and Personal Information Protection Act
1998 are as follows:
Complaints made against the Commission 0
Internal reviews conducted by the Commission 0
External reviews conducted by the Privacy Commission 0
External reviews conducted by the Administrative Decisions Tribunal 0
Public access to government information
The Commission is bound by the GIPA Act, although its investigative and reporting functions
are listed in Sch. 2 to the GIPA Act. The 1985 Commission Act and the 2012 Commission
Act are not listed in Sch. 1.
Any requests for information pursuant to the GIPA Act can be made to the Commission in
writing addressed as follows:
Government Information Officer
NSW Crime Commission
PO Box Q566
QVB Post Office
SYDNEY NSW 1230
Telephone or personal inquiries can be made during regular business hours. Telephone
numbers and the mailing address for inquiries can be found on the inside cover of this
Report. A form for applications under the GIPA Act for access to information is available on
the Commission’s website.
The Commission’s GIPA Act Annual Report can be found at Appendix I.
69
















Financial matters
Account payment performance
The Commission’s policy on accounts payable is that, where practicable, claims for
payments are processed within the supplier’s terms or, if no terms are stated, within thirty
days of receipt of the invoice.
The Commission’s performance in paying its bills in a timely manner was as follows:
Aged analysis at the end of each quarter
Quarter
Current
(within
due date)
($’000)
All suppliers
Less than
30 days
overdue
($’000)
31 to 60
days
overdue
($’000)
60 to 90
days
overdue
($’000)
More than
90 days
overdue
($’000)
September 2012
December 2012
2,679
3,561
15
96
0
0
0
0
0
0
March 2013 2,831 12 0 0 0
June 2013 3,186 29 0 0 0
Quarter
Small business suppliers
Current
(within
due date)
($’000)
Less than
30 days
overdue
($’000)
31 to 60
days
overdue
($’000)
61 to 90
days
overdue
($’000)
More than
91 days
overdue
($’000)
September 2012
December 2012
173
147
0
8
0
0
0
0
0
0
March 2013 64 0 0 0 0
June 2013 147 2 0 0 0
Quarter
Total accounts paid on time
Target
(%)
Actual
(%)
Total paid
($)
Total due
($)
September 2012
December 2012
85
85
99
95
2,678,723
3,560,655
2,694,058
3,646,247
March 2013 85 99 2,831,205 2,842,965
June 2013 85 99 3,185,692 3,214,784
70















Accounts due or paid within each quarter
September December March June
Measure 2012 2012 2013 2013
All suppliers
Number of accounts due for
payment 492 615 594 803
Number of accounts paid on
time 487 585 588 796
Actual percentage of account
paid on time (based on
number of accounts) 99% 95% 99% 99%
Dollar amount of accounts
due for payment 2,694,058 3,656,247 2,842,965 3,214,784
Dollar amount of accounts
paid on time 2,678,723 3,560,655 2,831,205 3,185,692
Actual percentage of
accounts paid on time (based
on amount) 99% 97% 100% 99%
Number of payments for
interest on overdue accounts 0 0 0 0
Interest paid on overdue
accounts 0 0 0 0
Small business suppliers
Number of accounts due for
payment 78 92 74 114
Number of accounts paid on
time 78 86 74 112
Actual percentage of account
paid on time (based on
number of accounts) 100% 93% 100% 98%
Dollar amount of accounts
due for payment 172,804 154,206 63,939 148,691
Dollar amount of accounts
paid on time 172,804 146,552 63,939 147,071
Actual percentage of
accounts paid on time (based
on amount) 100% 95% 100% 99%
Number of payments for
interest on overdue accounts 0 0 0 0
Interest paid on overdue
accounts 0 0 0 138
71










Credit card certification
Commission practice during 2012–2013 conformed to its corporate credit-card policy. The
policy is based on NSW Treasury Guidelines and Treasurer’s Direction 205.01.
The Commission certifies that authorised Commission officers used credit-cards in
accordance with its own policies, memoranda of the Department of Premier and Cabinet,
and the Treasurer’s Directions. There were no known instances of credit card misuse during
the year.
Grants to non-government community organisations
The Commissioner did not grant any funds to non-government community organisations
during the reporting period.
Insurance activities
The Commission has a comprehensive business continuity plan that will be updated on an
annual basis.
Through the Treasury Managed Fund, the Commission insures against a range of risks that
include such things as workers’ compensation, motor vehicle damage, property damage,
and public liability.
In 2012–2013, the Commission made eight insurance claims, compared to nine claims made
in 2011–2012.
Land disposal
The Commission did not dispose of any land during the year.
Overseas travel
None of the executive officers or members of staff of the Commission travelled overseas in
the course of their duties or otherwise at the Commission’s expense during the reporting
period.
Purchase of major assets
The Commission’s purchasing of major assets during the reporting period was as follows:
Asset Cost ($)
ICT infrastructure 128,150
Servers 99,548
Computer software 142,450
Other IT equipment 45,461
Surveillance equipment 65,633
Other plant and equipment 78,286
Covert facilities 70,619
Total 630,147
72













COMPLIANCE INDEX
The Commission is required to include in its Annual Report certain information specified in
the Annual Reports Act, the Annual Reports Regulation, the 2012 Commission Act, and
Treasury circulars. The specified information categories, and the locations within this report
where the information may be found, are as follows:
Requirement Location/comment
Access i
Agreements with the Community Relations Commission 68
Aims and objectives 1–2
Applications to the Supreme Court under subs. 19 (2) of the 1985
Commission Act and subs. 33 (3) of the 2012 Commission Act for
review in respect of decisions of the Commission
23
Availability of this Annual Report in non-printed format Available on
Commission website
Availability of this Annual Report on website Available on
Commission website
Charter 1–2
Compliance with the Privacy and Personal Information Protection
Act 1998
68
Consultants 72
Consumer response Not applicable
Controlled entities 10, 101–128
Court proceedings involving the Commission 21–23
Credit card certification 72
Description of patterns or trends, and the nature and scope, of
organised and other crime
25–28
Disability plans Exempt, 68
Economic or other factors Not applicable
Equal employment opportunity Exempt, 68
Exemptions 68
Extensions of time to submit report Nil
External costs incurred in production of this Annual Report Nil, 4–5
Financial statements 76–128
Funds granted to non-government community organisations 72
Government Information (Public Access) Act 2009 69, Appendix I
73









Requirement Location/comment
Human resources 9–11
Identification of audited financial statements 76–128
Implementation of price determination Not applicable
Information furnished to investigative agencies 60
Internal audit and risk management policy attestation 64, Appendix H
Investment performance Not applicable
Land disposal 72
Legal change 15–17, 23–24
Letter of submission i, ii
Liability of management performance Not applicable
Management and activities 2–8, 25–28, 30–67
Management and structure 9, Appendix B
Matters arising after 30 J une 2013 that could have a significant
effect on financial or other operations or the part of the community
we serve
Nil
Matters referred to the Commission for investigation 4
Multicultural Policies and Services Program Exempt, 68
Overseas visits 71
Payment of accounts 69–70
Performance and numbers of executive officers Not applicable
Prosecutions resulting from investigations 34–36
Public interest disclosures 12–13,
Appendices C and D
Recommendations for changes in laws or for administrative action 29
Requirements arising from employment arrangements Not applicable
Research and development 11
Risk management and insurance activities 62–64, 72
Subsidiaries Not applicable
Summary review of operations 4, 5, 14–60
Time for payment of accounts 69–70
Unaudited financial statements Not applicable
74




Requirement Location/comment
Warrants issued by the Commissioner under s. 18AA of the 1985
Commission Act or s. 36 of the 2012 Commission Act
32
Waste Exempt, 68
Work health and safety Exempt, 68
75












AUDITED FINANCIAL STATEMENTS
76

NEW SOUTH WALES CRIME COMMISSION
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
77
(c) There are no circumstances that would render any particulars included in the Financial Statements misleading or inaccurate.


           





New South Wales Crime Commission
Financial Statements for the
year ended 30 June 2013
STATEMENT BY COMMISSIONER
Pursuant to section 45F of the Public Finance and Audit Act 1983 , I state that:
(a)  The accompanying financial statements and notes have been prepared in accordance
with the provisions of the Public Finance and Audit Act 1983 , the Financial Reporting
Code for NSW General Government Sector Entities, the Public Finance and Audit
Regulation 2010, the Treasurer’s Directions and applicable Australian Accounting
Standards (which include Australian Accounting Interpretations).
(b)  The statements present a true and fair view of the financial position as at 30 June 2013
and transactions of the Commission for the year then ended.
(c)  There are no circumstances that would render any particulars included in the Financial
Statements misleading or inaccurate.
Peter Hastings Kelly Yeung
Commissioner Finance Manager
Dated: 19 September 2013
78
80
















NEW SOUTH WALES CRIME COMMISSION
Statement of comprehensive income for the year ended 30 June 2013
Notes Actual Budget
2013 2013
$’000 $’000
Consolidated
Actual
2012
$’000
Actual Actual
2013 2012
$’000 $’000
Statutory Corporation
Expenses excluding losses
Operating expenses
Employee related
Other operating expenses
Personnel services
Depreciation and amortisation
Other expenses
2(a)
2(b)
2(c)
2(d)
14,340
4,855
-
803
-
16,981
5,544
-
980
25
12,996
5,607
-
1,023
-
-
4,855
13,941
803
-
-
5,607
12,169
1,023
-
Total expenses excluding
losses
19,998 23,530 19,626 19,599 18,799
Revenue
Investment revenue
Grants and contributions
Acceptance by the Crown Entity
of employee benefits and other
liabilities
Other revenue
Total revenue
3(a)
3(b)
3(c)
159
19,680
399
59
20,297
75
22,933
402
25
23,435
114
18,269
827
75
19,285
159
19,680
-
59
19,898
114
18,269
-
75
18,458
Gain/(loss) on disposal 4 (13) - (5) (13) 5
Net result 18 286 (95) (346) 286 (336)
Other comprehensive income - - - - -
TOTAL COMPREHENSIVE
INCOME
286 (95) (346) 286 (336)
The accompanying notes form part of these financial statements.
81




















NEW SOUTH WALES CRIME COMMISSION
Statement of financial position as at 30 June 2013
Notes Actual Budget
2013 2013
$’000 $’000
Consolidated
Actual
2012
$’000
Actual Actual
2013 2012
$’000 $’000
Statutory Corporation
ASSETS
Current assets
Cash and cash equivalents
Receivables
Total Current Assets
5
6
3,100
668
3,768
2,339
768
3,107
2,437
622
3,059
3,100
486
3,586
2,437
396
2,833
Non-current assets
Receivables
Property, plant and equipment
- Land and buildings
- Plant and equipment
Intangible assets
Total Non-Current Assets
Total Assets
7
8
9
439
71
1,541
1,057
3,108
6,876
150
-
2,832
714
3,696
6,803
329
-
1,816
1,062
3,207
6,266
123
71
1,541
1,057
2,792
6,378
132
-
1,816
1,062
3,010
5,843
LIABILITIES
Current liabilities
Payables
Borrowings
Provisions
Total Current Liabilities
10
11
12
790
177
1,511
2,478
1,104
211
1,435
2,750
777
226
1,274
2,277
416
-
1,902
2,318
390
-
1,679
2,069
Non-current liabilities
Borrowings
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
14
13
316
22
338
2,816
4,060
14
121
135
2,885
3,918
197
18
215
2,492
3,774
-
-
-
2,318
4,060
-
-
-
2,069
3,774
EQUITY
Accumulated funds
Total Equity
4,060
4,060
3,918
3,918
3,774
3,774
4,060
4,060
3,774
3,774
The accompanying notes form part of these financial statements.
82






- -




- -


NEW SOUTH WALES CRIME COMMISSION
Statement of changes in equity for the year ended 30 June 2013
Balance as at 1 July 2012
Net result for the year
Other comprehensive income
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Increase / (decrease) in net assets from equity
transfers
Balance at 30 June 2013
Balance as at 1 July 2011
Net result for the year
Other comprehensive income
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Increase / (decrease) in net assets from equity
transfers
Balance at 30 June 2012
Accumulated
Funds Total
$'000 $'000
3,774 3,774
286 286
- -
286 286
4,060 4,060
4,120
(346)
-
(346)
4,120
(346)
-
(346)
3,774 3,774
The above Statement of changes in equity refers to the Consolidated Entity and the Statutory Corporation as the
figures are the same in both instances.
The accompanying notes form part of these financial statements.
83
















NEW SOUTH WALES CRIME COMMISSION
Statement of cash flows for the year ended 30 June 2013
CASH FLOWS FROM
OPERATING ACTIVITIES
Payments
Employee related
Other
Total Payments
Receipts
Interest received
Grants and contributions
Other
Total Receipts
NET CASH FLOWS FROM
OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sale of property,
plant and equipment
Purchases of property, plant and
equipment
Purchase of Intangibles
NET CASH FLOWS FROM
INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds of borrowings and
advances
NET CASH FLOWS FROM
FINANCING ACTIVITIES
Notes
18
Actual Budget
2013 2013
$’000 $’000
(13,376) (16,502)
(5,579) (5,500)
Consolidated
(18,955) (22,002)
161 75
19,680 22,933
650 474
20,491 23,482
1,536 1,480
23 -
(312) -
(318) -
(607) -
(266) -
(266) -
Actual
2012
$’000
(11,560)
(6,308)
(17,868)
141
18,269
724
19,134
1,266
54
(871)
(379)
(1,196)
(258)
(258)
Actual Actual
2013 2012
$’000 $’000
(13,642) (11,818)
(5,579) (6,308)
Statutory Corporation
(19,221) (18,126)
161 141
19,680 18,269
650 724
20,491 19,134
1,270 1,008
23 54
(312) (871)
(318) (379)
(607) (1,196)
- -
- -
NET INCREASE/(DECREASE) IN
CASH
Opening cash and cash
equivalents
CLOSING CASH AND CASH
EQUIVALENTS
5
663
2,437
3,100
1,480
-
1,480
(188)
2,625
2,437
663
2,437
3,100
(188)
2,625
2,437
The accompanying notes form part of these statements.
84







1.
(a)
(b)
(c)
(d)
(e)
(f)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting entity
The New South Wales Crime Commission (the Commission) is a NSW government entity. The Commission is a not-for-profit
entity (as profit is not its principal objective) and it has no cash generating units. The reporting entity is consolidated as part of
the NSW Total State Sector Accounts.
The New South Wales Crime Commission, as a reporting entity, comprises all the entities under its control, namely the Office of
the New South Wales Crime Commission and the New South Wales Crime Commission Division (created on 17 March 2006).
The consolidated financial statements for the year ended 30 June 2013 have been authorised for issue by the Commissioner
on 19 September 2013.
Basis of consolidation and preparation
The Commission's consolidated financial statements include the financial statements of the economic entity and the Office of
the NSW Crime Commission and NSW Crime Commission Division.
In the process of preparing the consolidated financial statements, all inter-entity transactions and balances have been
eliminated.
The Commission’s financial statements are general purpose financial statements which have been prepared in accordance
with:
*  applicable Australian Accounting Standards (which include Australian Accounting Interpretations)
*  the requirements of the Public Finance and Audit Act 1983 (PFAA) and Regulation and
*  the Financial Reporting Directions published in the Financial Reporting Code for NSW General Government Sector
Entities or issued by the Treasurer.
Property, plant and equipment, assets (or disposal groups) held for sale and financial assets at 'fair value through profit or loss'
and available for sale are measured at fair value. Other financial statement items are prepared in accordance with the historical
cost convention.
Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial
statements.
All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.
Statement of compliance
The consolidated and parent entity financial statements and notes comply with Australian Accounting Standards, which include
Australian Accounting Interpretations.
Administered activities
The Commission administers, but does not control, certain activities on behalf of the Crown Entity. It is accountable for the
transactions relating to those administered activities but does not have the discretion, for example, to deploy the resources for
the Commission’s own objectives.
Transactions and balances relating to the administered activities are not recognised as the Commission’s income, expenses,
assets and liabilities, but are disclosed in the accompanying schedules as Administered Assets.
The accrual basis of accounting and applicable accounting standards have been adopted.
Borrowing costs
Borrowing costs are recognised as expenses in the period in which they are incurred in accordance with Treasury’s mandate to
not-for-profit general government sector entities.
Insurance
The Commission's insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self insurance for
Government entities. The expense (premium) is determined by the Fund Manager based on past claim experience.
85
















1.
(g)
(h)
(i)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accounting for the Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of GST, except that:
the amount of GST incurred by the Commission as a purchaser that is not recoverable from the Australian Taxation
Office is recognised as part of the cost of acquisition of an asset, or as part of an item of expense and
*
* receivables and payable are stated with the amount of GST included.
Cash flows are included in the statement of cash flows on a gross basis. However, the GST components of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as
operating cash flows.
Income recognition
Income is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding
the accounting policies for the recognition of income are discussed below.
(i) Grants and contributions
Except as specified below, grants and contributions from other bodies are generally recognised as income when the
Commission obtains control over the assets comprising the contributions. Control over grants and contributions is normally
obtained upon the receipt of cash. Under expenditure of grants funded by the principal department of the cluster, the
Department of Attorney General and Justice, are recognised as liabilities rather than as income, as the authority to spend the
money lapses and the unspent amount must be repaid to the principal department.
The Commission received recurrent and capital grants from the principle department of the cluster, the Department of Attorney
General and Justice.
(ii) Professional costs recovered
Income from professional costs recovered comprises revenue awarded to the Commission from litigation proceedings. This
income is recognised following the making of a costs order by a court.
(iii) Investment revenue
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition
and Measurement.
Assets
(i) Acquisition of assets
The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Commission. Cost
is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time
of acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance
with the requirements of other Australian Accounting Standards.
Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.
Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length
transaction.
Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. the deferred
payment amount is effectively discounted at an asset-specific rate.
(ii) Capitalisation thresholds
Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing
more than $5,000) are capitalised.
(iii) Revaluation of property, plant and equipment
Physical non-current assets are valued in accordance with the ‘Valuation of Physical Non-Current Assets at Fair Value’ Policy
and Guidelines Paper (TPP 07-01) (as amended by NSWTC 12/05 and NSWTC 10/07). This policy adopts fair value in
accordance with AASB 116 Property, Plant & Equipment .
86










1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing
natural, legal, financial and socio-political environment. However, in the limited circumstances where there are feasible
alternative uses, assets are valued at their highest and best use.
Fair value of property, plant and equipment is determined based on the best available market evidence, including current
market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is
measured at its market buying price, the best indicator of which is depreciated replacement cost.
The Commission revalues each class of property, plant and equipment with sufficient regularity to ensure that the carrying
amount of each asset in the class does not differ materially from its fair value at reporting date.
Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value.
When revaluing non-current assets by reference to current prices for assets newer than those being revalued (adjusted to
reflect the present condition of the assets), the gross amount and the related accumulated depreciation is separately restated.
For other assets, any balances of accumulated depreciation existing at the revaluation date in respect of those assets are
credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation
increments or decrements.
Revaluation increments are credited directly to the revaluation surplus, except that, to the extent that an increment reverses a
revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is
recognised immediately as revenue in the net result.
Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit
balance exists in the revaluation surplus in respect of the same class of assets, they are debited directly to the revaluation
surplus.
As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current
assets, but not otherwise.
Where an asset that has previously been revalued is disposed of, any balance remaining in the revaluation surplus in respect
of that asset is transferred to accumulated funds.
(iv) Impairment of property, plant and equipment
As a not-for-profit entity with no cash generating units, AASB 136 Impairment of Assets effectively is not applicable. AASB 136
modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This
means that, for an asset already measured at fair value, impairment can only arise if selling costs are material. Selling costs for
the entity are regarded as immaterial.
(v) Depreciation of property, plant and equipment
Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each
asset as it is consumed over its useful life to the Commission.
All material separately identifiable component assets are depreciated separately over their useful lives.
Land is not a depreciable asset. The rates of depreciation, applied to relevant categories of assets are set out in the following
table, have been reviewed and revised this financial year.
Depreciation asset category Rate (%)
Computer Equipment
Motor Vehicles
Office equipment: furniture / fittings
Office equipment: mechanical / electronic
10.00 - 33.30
15.00
7.50 - 8.00
10.00 - 33.30
(vi) Maintenance
Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement
of a component of an asset, in which case the costs are capitalised and depreciated.
87

















1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(vii) Leased assets
A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks
and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all
such risks and benefits.
Where a non-current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the
commencement of the lease term. The corresponding liability is established at the same amount. Lease payments are
allocated between the principal component and the interest expense.
Operating lease payments are charged to the statement of comprehensive income in the periods in which they are incurred.
(viii) Intangible assets
The Commission recognises intangible assets only if it is probable that future economic benefits will flow to the Commission
and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired
at no or nominal cost, the cost is its fair value at the date of acquisition.
The useful lives of intangible assets are assessed to be finite.
Intangible assets are subsequently measured at fair value only if there is an active market. As there is no active market for the
Commission's intangible assets, the assets are carried at cost less any accumulated amortisation.
The Commission's intangible assets are amortised using the straight-line method over a period of 3 to 10 years (for computer
software).
Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its
carrying amount, the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.
(ix) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value. The
Commission measures long-term receivables at nominal value, rather than at present value as the financial impact of
discounting on the portion of the long-term receivables are not material. Any changes are recognised in the net result for the
year when impaired, derecognised or through the amortisation process.
Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting
is immaterial.
(j) Liabilities
(i) Payables
These amounts represent liabilities for goods and services provided to the Commission and other amounts. Payables are
recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised
cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice
amount where the effect of discounting is immaterial.
(ii) Borrowings
The finance lease liability is determined in accordance with AASB 117 Leases .
(iii) Employee benefits and other provisions
As a result of the amendments to the Public Sector Employment and Management Act 2002, the New South Wales Crime
Commission Division and the Office of the New South Wales Crime Commission are responsible for employees and employee-
related liabilities of the New South Wales Crime Commission.
(a) Salaries and wages, annual leave, sick leave and on-costs
Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid sick leave that are due to be settled
within 12 months after the end of the period in which the employees render the service are recognised and measured in respect
of employees’ services up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the
liabilities are settled.
88













1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k)
(l)
(m)
(n)
(o)
The Commission measures long-term annual leave at nominal value, rather than at present value as the financial impact of
discounting on the portion of the long-term leave is not material.
Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future
will be greater than the benefits accrued in the future.
The outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax, which are
consequential to employment; are recognised as liabilities and expenses where the employee benefits to which they relate have
been recognised.
(b) Long service leave and superannuation
The Commission's liabilities for long service leave and defined benefit superannuation are assumed by the Crown Entity. The
Commission's accounts for the liability as having been extinguished resulting in the amount assumed being shown as part of
the non-monetary revenue item described as 'Acceptance by the Crown Entity of employee benefits and other liabilities'.
Long service leave is measured on a present value in accordance with AASB 119 Employee Benefits . This is based on the
application of certain factors (specified in NSWTC 12/06) to employees with five or more years of service, using current rates of
pay. These factors were determined based on an actuarial review to approximate present value.
The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer's Directions.
The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) are calculated as a percentage of
the employees' salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities
Superannuation Scheme), the expense is calculated as a multiple of the employees' superannuation contributions.
Equity and reserves
(i) Accumulated Funds
The category accumulated funds includes all current and prior period retained funds.
(ii) Separate reserve accounts are recognised in the financial statements only if such accounts are required by specific
legislation or Australian Accounting Standards (e.g. revaluation surplus and foreign currency translation reserve).
Equity Transfers
The transfer of net assets between agencies as a result of an administrative restructure, transfers of programs / functions and
parts thereof between NSW public sector entities and 'equity appropriations' (refer Note 1 (h) (i)) are designated or required by
Accounting Standards to be treated as contributions by owners and recognised as an adjustment to "Accumulated Funds". This
treatment is consistent with AASB 1004 Contributions and Australian Interpretation 1038 Contributions by Owners Made to
Wholly-Owned Public Sector Entities .
Transfers arising from an administrative restructure involving not-for-profit entities are recognised at the amount at which the
assets and liabilities were recognised by the transferor immediately prior to the restructure. Subject to below, in most instances
this will approximate fair value.
All other equity transfers are recognisable at fair value, except for intangibles. Where an intangible has been recognised at
(amortised) cost by the transferor because there is no active market, the agency recognises the asset at the transferor's
carrying amount. Where the transferor is prohibited from recognising internally generated intangibles, the agency does not
recognise that asset.
Budgeted amounts
The budgeted amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the
reporting period, as adjusted for section 24 of the PFAA where there has been a transfer of functions between departments.
Other amendments made to the budget are not reflected in the budgeted amounts.
Comparative information
Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect
of the previous period for all amounts reported in the financial statements.
New Australian Accounting Standards issued but not yet effective
NSW public sector entities are not permitted to early adopt new Australian Accounting Standards, unless Treasury determines
otherwise.
The following Accounting Standards have not been applied and are not yet effective.
89
















































1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.
(a)
(b)
• AASB 9, AASB 2010-7 and AASB 2012-6 regarding financial instruments
• AASB 10 Consolidated Financial Statements
• AASB 11 Joint Arrangements
• AASB 12 Disclosure of Interests in Other Entities
• AASB 13, AASB 2011-8 and AASB 2012-1 regarding fair value measurement
• AASB 119, AASB 2011-10 and AASB 2011-11 regarding employee benefits
• AASB 127 Separate Financial Statements
• AASB 128 Investments in Associates and Joint Ventures
• AASB 1053 and AASB 2010-2 regarding differential reporting
• AASB 2010-10 regarding removal of fixed dates for the first time adopters
• AASB 2011-2 regarding Trans Tasman Convergence - RDR
• AASB 2011-4 removing individual KMP disclosure requirements
• AASB 2011-6 regarding RDR and relief from consolidation
• AASB 2011-7 regarding consolidation and joint arrangements
• AASB 2011-12 regarding Interpretation 20
• AASB 2012-1 regarding fair value measurement - RDR requirements
• AASB 2012-2 regarding disclosures - offsetting financial assets and financial liabilities
• AASB 2012-3 regarding offsetting financial assets and financial liabilities
• AASB 2012-4 regarding government loans - first time adoption
• AASB 2012-5 regarding annual improvements 2009-2-11 cycle
• AASB 2012-7 regarding RDR
• AASB 2012-9 regarding withdrawal of Interpretation 1039
• AASB 2012-10 regarding transition guidance and other amendments
• AASB 2012-11 regarding RDR requirements and other amendments
While the impact of these standards in the period of initial application has not been specifically quantified, they are not expected
to materially impact the financial statements.
EXPENSES EXCLUDING LOSSES
Statutory
Consolidated Corporation
2013 2012 2013 2012
$’000 $’000 $’000 $’000
Employee related expenses
Salaries and wages (including recreation leave) 12,118 10,497 - -
Superannuation – defined benefit plans 137 138 - -
Superannuation – defined contribution plans 967 771 - -
Long service leave 277 775 - -
Workers’ compensation insurance 42 96 - -
Payroll tax and fringe benefit tax 740 673 - -
Other 59 46 - -
14,340 12,996 - -
Other operating expenses
Auditor’s remuneration
– audit of the financial statements 38 36 38 36
Bad and doubtful debts - - - -
Operating lease rental expense
– minimum lease payments 1,435 1,435 1435 1,435
Maintenance* 89 227 89 227
Insurance 6 10 6 10
Office utilities 350 351 350 351
Office supplies 1,498 1,396 1498 1,396
Computer services 117 96 117 96
Travel expenses 50 65 50 65
Motor vehicle expenses 96 112 96 112
Service and legal fees 977 1,771 977 1,771
Other 199 108 199 108
4,855 5,607 4,855 5,607
90


























2. EXPENSES EXCLUDING LOSSES (continued)
Consolidated Statutory Corporation
(c)
(d)
3.
(a)
(b)
(c)
2013 2012 2013 2012
$’000 $’000 $’000 $’000
*Reconciliation - Total Maintenance
Maintenance expense - contracted labour and
other (non-employee related), as above 89 227 89 227
Personnel services maintenance expense included in Note 2(a) 44 43 - -
Total maintenance expenses included in Note 2(a) and 2(b) 133 270 89 227
Personnel services
NSW Crime Commission Division  - - 13,651 11,862
Office of the NSW Crime Commission  - - 290 307
- - 13,941 12,169
Depreciation and amortisation expense
Depreciation
- Plant and equipment  83 89 83 89
- Computer equipment  378 593 378 593
- Motor vehicles  19 24 19 24
480 706 480 706
Amortisation 323 317 323 317
Total Depreciation and amortisation 803 1,023 803 1,023
REVENUES
Investment revenue
Interest revenue from financial assets not at
fair value through profit and loss 159 114 159 114
159 114 159 114
Grants and contributions
Recurrent Grants  19,050 17,019 19,050 17,019
Capital Grants  630 1,250 630 1,250
19,680 18,269 19,680 18,269
Acceptance by the crown entity of employee benefits and other liabilities
The following liabilities and/or expenses have been assumed by the Crown Entity or other government agencies:
Superannuation – defined benefit 137 137 - -
Long service leave 255 682 - -
Payroll tax 7 8 - -
399 827 - -
GAIN / (LOSS) ON DISPOSAL
Written down value of assets sold/scrapped (36) (59) (36) (59)
Proceeds from disposal 23 54 23 54
(13) (5) (13) (5)
4.
91























5. CURRENT ASSETS - CASH AND CASH EQUIVALENTS
Consolidated Statutory Corporation
2013 2012 2013 2012
$’000 $’000 $’000 $’000
Cash at bank and on hand 3,100 2,437 3,100 2,437
3,100 2,437 3,100 2,437
Cash and cash equivalent assets recognised in the Statement of Financial Position are reconciled at the end of the
financial year to the Statement of Cash Flows as follows:
Cash and cash equivalents (per Statement of
3,100 2,437 3,100 2,437
Financial Position)
Closing cash and cash equivalents (per Statement of
3,100 2,437 3,100 2,437
Cash Flows)
Refer note 20 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.
6. CURRENT ASSETS – RECEIVABLES
Professional costs to be recovered 7 50 7 50
Less: Allowance for impairment * - - - -
Interest receivable 44 46 44 46
Operational expenses to be recouped 123 89 123 89
Employee debtors 177 226 - -
Other debtors 43 61 43 61
Prepayments 274 150 269 150
668 622 486 396
Movement in the allowance for impairment
Balance at 1 July - - - -
Amounts written off during the year - - - -
Balance at 30 June - - - -
Details regarding credit risk, liquidity risk and market risk including financial assets that are either past due or impaired,
are disclosed in Note 20.
7.
NON-CURRENT ASSETS – RECEIVABLES
Professional Costs to be recovered 123 132 123 132
Less: Allowance for impairment * - - - -
Employee Debtors 316 197 - -
439 329 123 132
Movement in the allowance for impairment
Balance at 1 July - - - -
Amounts written off during the year - - - -
Balance at 30 June - - - -
*Allowance for impairment is related to professional costs to be recovered.
92
































8. NON- CURRENT ASSETS - PROPERTY, PLANT & EQUIPMENT
Land and
buildings
Plant and
equipment
Consolidated
Total Land and
buildings
Plant and
equipment
Statutory Corporation
Total
$’000 $’000 $’000 $’000 $’000 $’000
At 1 July 2012 – fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
-
-
-
7,526
(5,710)
1,816
7,526
(5,710)
1,816
-
-
-
7,526
(5,710)
1,816
7,526
(5,710)
1,816
At 30 June 2013 – fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
71
-
71
7,326
(5,785)
1,541
7,397
(5,785)
1,612
71
-
71
7,326
(5,785)
1,541
7,397
(5,785)
1,612
Reconciliation
A reconciliation of the carrying amount of each class of property, plant & equipment at the beginning and end of the
previous reporting period is set out below:
Land and
buildings
Plant and
equipment
$’000 $’000
Total
$’000
Land and
buildings
Plant and
equipment
$’000 $’000
Total
$’000
Year ended 30 June 2013
Net carrying amount at start of year
Additions
Disposals
Depreciation expense
Net carrying amount at end of year
- 1,816
71 241
- (36)
- (480)
71 1,541
1,816
312
(36)
(480)
1,612
- 1,816
71 241
- (36)
- (480)
71 1,541
1,816
312
(36)
(480)
1,612
Land and
buildings
Plant and
equipment
$’000 $’000
Total
$’000
Land and
buildings
Plant and
equipment
$’000 $’000
Total
$’000
At 1 July 2011 – fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
- 6,964
- (5,254)
- 1,710
6,964
(5,254)
1,710
- 6,964
- (5,254)
- 1,710
6,964
(5,254)
1,710
At 30 June 2012 – fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
- 7,526
- (5,710)
- 1,816
7,526
(5,710)
1,816
- 7,526
- (5,710)
- 1,816
7,526
(5,710)
1,816
Reconciliation
A reconciliation of the carrying amount of each class of property, plant & equipment at the beginning and end of the
previous reporting period is set out below:
Land and Plant and Total Land and Plant and Total
buildings equipment buildings equipment
$’000 $’000 $’000 $’000 $’000 $’000
Year ended 30 June 2012
Net carrying amount at start of year
Additions
Disposals
Depreciation expense
-
-
-
-
1,710
871
(59)
(706)
1,710
871
(59)
(706)
-
-
-
-
1,710
871
(59)
(706)
1,710
871
(59)
(706)
Net carrying amount at end of year
- 1,816 1,816 - 1,816 1,816
93


















9. INTANGIBLE ASSETS
At 1 July 2012
Cost (gross carrying amount)
Accumulated amortisation and impairment
Net carrying amount
At 30 June 2013
Cost (gross carrying amount)
Accumulated amortisation and impairment
Net carrying amount
Year ended 30 June 2013
Net carrying amount at start of year
Additions (acquired separately)
Disposals
Amortisation (recognised in “depreciation and
amortisation”)
Net carrying amount at end of year
As at 1 July 2011
Cost (gross carrying amount)
Accumulated amortisation and impairment
Net carrying amount
As at 30 June 2012
Cost (gross carrying amount)
Accumulated amortisation and impairment
Net carrying amount
Year ended 30 June 2012
Net carrying amount at start of year
Additions (acquired separately)
Amortisation (recognised in “depreciation and
amortisation”)
Net carrying amount at end of year
Consolidated
Total
$’000
2,519
(1,457)
Statutory
Corporation
Total
$’000
2,519
(1,457)
1,062 1,062
2,836
(1,779)
1,057
2,836
(1,779)
1,057
1,062
318
-
(323)
1,062
-
(323)
1,057 1,057
2,140
(1,140)
1,000
2,140
(1,140)
1,000
2,519
(1,457)
1,062
2,519
(1,457)
1,062
1,000 1,000
379 379
(317)
1,062
(317)
1,062
318
94





















10. CURRENT LIABILITIES – PAYABLES
Statutory
Consolidated Corporation
Accrued salaries, wages and on-costs
Creditors
Accrued other operating expenses
Notes
2013
$’000
374
259
157
790
2012
$’000
387
128
262
777
2013
$’000
-
259
157
416
2012
$’000
-
128
262
390
11. CURRENT LIABILITIES - BORROWINGS
Unsecured
Finance leases 15(c) 177
177
226
226
-
-
-
-
12. CURRENT LIABILITIES – PROVISIONS
Employee benefits and related on-costs
Provision for personnel services
Recreation leave
Long Service Leave on-costs
Total provisions
-
1,124
387
1,511
-
902
372
1,274
1,902
-
-
1,902
1,679
-
-
1,679
13. NON-CURRENT LIABILITIES – PROVISIONS
Employee benefits and related on-costs
Long Service Leave on-costs
Total provisions
22
22
18
18
-
-
-
-
Aggregate employee benefits and
related on-costs
Provisions – current
Provisions – non-current
Accrued salaries, wages and on-costs
(Note 10)
1,511
22
374
1,907
1,274
18
387
1,679
-
-
-
-
-
-
-
-
14. NON-CURRENT LIABILITIES – BORROWINGS
Unsecured
Finance leases 15(c) 316
316
197
197
-
-
-
-
95
than five years

- - - -






















15. COMMITMENTS FOR EXPENDITURE
(a)
(b)
(c)
Consolidated Statutory Corporation
2013 2012 2013 2012
Notes $’000 $’000 $’000 $’000
Capital Commitments
Aggregate capital expenditure for the acquisition of computer related items contracted for at balance date and
not provided for:
Not later than one year 1 204 1 204
Later than one year and not later
than five years
Later than five years - - - -
Total (including GST)
1 204 1 204
The above capital commitments included the GST amount of $106 ($17,866 as at 30 June 2012) which would
be recoverable from Australian Taxation Office.
Operating Lease Commitments
Future non-cancellable operating lease rentals not provided for and payable:
Not later than one year
Later than one year and not later
than five years
Later than five years
Total (including GST)
Note:
1,648 1,648 1,648 1,648
6,594 6,591 6,594 6,591
9,890 11,534 9,890 11,534
18,132 19,773 18,132 19,773
(i) 453 Kent Street was leased back from the State Property Authority to the Commission on 1 July 2009.
(ii) The above operating lease commitments included the GST amount of $1,648,405 ($1,797,540 as at 30
June 2012) which would be recoverable from Australian Taxation Office.
Finance Lease Commitments
The Commission has a master finance lease with Westpac Bank relating to the leasing of motor vehicles on
behalf of certain employees for salary packages. These leases are entered into pursuant to a contract with the
employee, wherein the employee fully indemnifies the Commission in relation to any costs and liabilities. These
leases have been disclosed to Treasury and the Commission has approval under the Public Authorities
(Financial Arrangements) Act, 1987.
Minimum lease payment commitments in relation to finance leases payable as follows:
Consolidated
2013 2012
$’000 $’000
Not later than one year 177 226
Later than one year and not later
than five years 316 197
Statutory Corporation
2013 2012
$’000 $’000
- -
- -
Minimum lease payments 493 423 - -
Less: future finance charges (41) (33) - -
Present value of minimum lease
452 390 - -
payments
The present value of finance lease commitments is as follows:
Not later than one year 177 226 - -
Later than one year and not later than five years 316 197 - -
493 423 - -
Classified as:
Current 11 177 226 - -
Non-current 14 316 197 - -
493 423 - -
There were no material ‘Other Expenditure Commitments’ at year end.
96












16. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
17.
18.
19.
20.
The Commission is not aware of any contingent liabilities or contigent assets that will materially affect its financial
position as at the reporting date.
However, the Commission is aware of a potential contingent liability in regards to an employee's superannuation.
The amount of the exposure, if there is a liability, is currently under assessment.
BUDGET REVIEW
Net result
The actual net result was lower than the budget by $0.38 million, primarily due to the savings of $2.6 million on
employee related expenditure as some positions were not filled during the year, and to the decrease of grants and
contributions of $3.3 million. The capital grant was underspent by $0.83 million. This amount will be rolled over to
the next financial year.
Assets and liabilities
Total current assets were increased by $0.66 million compared to budget, mainly due to the increase in cash and
cash equivalents of $0.76 million. Total non-current assets was lower than the budget by $0.58 million mainly due
to the decrease of plant & equipment by $1.3 million.
Cash flows
The Commission's actual net cash flows from operating activities was higher than the budget by $0.06 million.
This was mainly due to decrease in employee related payment of $3.13 million and the decrease of grants and
contributions receipts of $3.25 million.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET RESULT
Net cash used on operating activities
Depreciation & amortisation
Adjustment for salary packaged vehicle lease
Decrease / (increase) in provisions
Increase / (decrease) in receivables and other assets
Decrease / (increase) in borrowings
Decrease / (Increase) in creditors
Net (loss) / gain on sale of plant and equipment
Consolidated Statutory Corporation
2013 2012 2013 2012
$’000 $’000 $’000 $’000
1,536 1,266 1,270 1,008
(803) (1,023) (803) (1,023)
(266) (258) - -
(241) (117) (223) (277)
156 132 81 58
(70) (74) - -
(13) (267) (26) (107)
(13) (5) (13) (5)
Net result 286 (346) 286 (346)
ADMINISTERED ASSETS
Administered Assets
During the course of its operations in criminal investigations and confiscation action, funds come into the hands of
the Commission in respect of which there is no clear position as to its title or disposition.  These funds are paid
into an Escrow account pending determination of such issues. The account is interest bearing and it is reconciled
as to principal and interest on a regular basis. The balance of the account is not treated as an asset of the
Commission. The funds are administered by the NSW Trustee and Guardian. An amount of $1,547,460 was
being held on behalf of the NSW Crime Commission at 30 June 2013 ($3,089,647 as at 30 June 2012).
FINANCIAL INSTRUMENTS
The Commission’s principal financial instruments are outlined below. These financial instruments arise directly
from the Commission’s operations or are required to finance the Commission’s operations. The Commission does
not enter into or trade financial instruments for speculative purposes. The Commission does not use financial
derivatives.
The Commission’s main risks arising from financial instruments are outlined below, together with the
Commission’s objectives, policies and processes for measuring and managing risk. Further quantitative and
qualitative disclosures are included throughout these Financial Statements.
97














20. FINANCIAL INSTRUMENTS (continued)
The Management Team has overall responsibility for the establishment and oversight of risk management
and reviews and agrees policies for managing each of these risks. Risk management policies are established
to identify and analyse the risks faced by the Commission, to set risk limits and controls and to monitor risks.
Compliance with policies is reviewed by the Internal Audit Committee on a continuous basis.
(a) Financial instrument categories
Financial Assets Note Category Carrying Carrying
Amount Amount
2013 2012
Class: $’000 $’000
Cash and cash equivalents 5 N/A
3,100 2,437
1
6 & 7 Loans and receivables at
Receivables
746 694
amortised cost
Financial Liabilities Note Category Carrying Carrying
Amount Amount
2013 2012
Class:
$’000 $’000
2
10 Financial liabilities measured at
Payables
780 771
amortised cost
Borrowings 11&14 Financial liabilities measured at
493 423
amortised cost
Notes
1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7).
2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).
(b) Credit risk
Credit risk arises when there is the possibility of the Commission’s debtors defaulting on their contractual
obligations, resulting in a financial loss to the Commission. The maximum exposure to credit risk is generally
represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk
arises from the financial assets of the Commission, including cash and receivables. No collateral is held by
the Commission. The Commission has not granted any financial guarantees. Credit risk associated with the
Commission’s financial assets, other than receivables, is managed through the selection of counterparties
and establishment of minimum credit rating standards.
Cash
Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is
earned on daily bank balances at the monthly average NSW Treasury Corporation (TCorp) 11am unofficial
cash rate, adjusted for a management fee to NSW Treasury.
Receivables - trade debtors
All trade debtors are recognised as amounts receivable at balance date. Collectibility of trade debtors is
reviewed on an ongoing basis. Procedures as established in the Treasurer's Directions are followed to
recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are
written off. An allowance for impairment is raised when there is objective evidence that the Commission will
not be able to collect all amounts due. This evidence includes past experience, and current expected changes
in economic conditions and debtor credit ratings. No interest is earned on trade debtors. Sales are made on
30 day terms.
The Commission is not materially exposed to concentrations of credit risk to a single trade debtor or group of
debtors. Based on past experience, debtors that are not past due (2013: $47,587; 2012: $66,856) and less
than 3 months past due (2013: $26,979; 2012: $58,965) are not considered impaired. Together, these
represent 36% of the total trade debtors. No provision for doubtful debts have been made as all amounts are
considered to be collectable.
98























20. FINANCIAL INSTRUMENTS (continued)
$'000
Past due but not
Considered impaired
1,2
1,2
Total
impaired
1,2
2013
< 3 months overdue 6 6 -
3 months - 6 months overdue 22 22 -
> 6 months overdue 123  123 -
2012
< 3 months overdue 126 126 -
3 months - 6 months overdue - - -
> 6 months overdue 132 132 -
Notes
1. Each column in the table reports "gross receivables"
2. The ageing analysis excludes statutory receivables, as these are not within the scope of AASB 7 and excludes
receivables that are not past due and not impaired. Therefore the "total" will not reconcile to the receivables total
recognised in the balance sheet.
(c) Liquidity risk
Liquidity risk is the risk that the Commission will be unable to meet its payment obligations when they fall due. The
Commission continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate
holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility
through the use of overdrafts, loans and other advances.
During the current and prior year, there were no defaults on any loans payable. No assets have been pledged as
collateral. The Commission’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current
assessment of risk. The liabilities are recognised for amounts due to be paid in the future for goods or services received,
whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set
out in NSW TC 11/12. For small business suppliers, where terms are not specified, payment is made not later than 30
days from date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is
made no later than the end of the month following the month in which an invoice or a statement is received. For small
business suppliers where payment is not made within the specified time period, simple interest must be paid
automatically unless an existing contract specifies otherwise.
The table below summarises the maturity profile of the Commission's financial liabilities, together the interest rate
exposure.
Maturity analysis and interest rate exposure of financial liabilities
$'000
Interest Rate Exposure Maturity Dates
Weighted
Fixed Variable
Average Nominal   Non-interest
1
Interest Interest   <1 yr 1-5 yrs >5 yrs
Effective Amount  Bearing
Rate Rate
Int. Rate
2013
Payables - 259 - - 259 259 - -
Borrowings
Finance leases 8% 493 - - 493 177 316 -
752 - - 752 436 316 -
2012
Payables - 129 - - 129 129 - -
Borrowings
Finance leases 8% 423 - - 423 226 197 -
552 - - 552 355 197 -
Notes:
1.  The amounts disclosed are the contractual undiscounted cash flows of each class of the financial
liabilities and therefore will not reconcile to the Statement of financial position.
99


20. FINANCIAL INSTRUMENTS (continued)
(d) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. The Commission’s exposures to market risk are primarily through interest rate risk
on the Commission’s borrowings. The Commission has no exposure to foreign currency risk and does not
enter into commodity contracts.
Interest rate risk
Exposure to interest rate risk arises primarily through the Commission's interest bearing liabilities. This risk is
minimised by undertaking mainly fixed rate borrowings. The Commission does not account for any fixed rate
financial instruments at fair value through profit or loss or as available-for-sale. Therefore, for these financial
instruments, a change in interest rates would not affect profit or loss or equity. A reasonably possible change
of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and
amended where there is a structural change in the level of interest rate volatility. The Commission's exposure
to interest rate risk is set out below.
$'000
Carrying -1% 1%
Amount Profit Equity Profit Equity
2013
Financial Assets
Cash and cash equivalents 3,100 (31) (31) 31 31
2012
Financial Assets
Cash and cash equivalents 2,437 (24) (24) 24 24
(e) Fair value
Financial instruments are generally recognised at cost. The amortised cost of financial instruments
recognised in the statement of financial position approximates fair value, because of the short term nature of
many of the financial instruments.
21. EVENTS AFTER THE REPORTING PERIOD
There have been no significant events after the reporting period which would materially affect these financial
statements.
End of audited financial statements
100
NEW SOUTH WALES CRIME COMMISSION DIVISION
(Special Purpose Service Entity)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
101









New South Wales Crime Commission Division
Financial Statements for the
Year Ended 30 June 2013
STATEMENT BY COMMISSIONER
Pursuant to section 45F of the Public Finance and Audit Act 1983 , I state that:
(a)  The accompanying financial statements and notes have been prepared in accordance with the
provisions of the Public Finance and Audit Act 1983 , the Financial Reporting Code for NSW
General Government Sector Entities, the Public Finance and Audit Regulation 2010, the
Treasurer’s Directions and applicable Australian Accounting Standards (which include Australian
Accounting Interpretations).
(b)  The statements present a true and fair view of the financial position as at 30 June 2013 and
transactions of the Division for the year then ended.
(c)  There are no circumstances that would render any particulars included in the Financial
Statements misleading or inaccurate.
Peter Hastings Kelly Yeung
Commissioner Finance Manager
Dated: 19 September 2013
102
104







NEW SOUTH WALES CRIME COMMISSION DIVISION
Statement of comprehensive income for the year ended 30 June 2013
Notes Actual Actual
2013 2012
$’000 $’000
Expenses excluding losses
Employee related 2 14,001 12,597
TOTAL EXPENSES EXCLUDING LOSSES 14,001 12,597
Revenue
Personnel Services - NSW Crime Commission 3 13,651 11,862
Other 3 350 735
Total revenue 14,001 12,597
Other comprehensive income - -
TOTAL COMPREHENSIVE INCOME - -
The accompanying notes form part of these financial statements.
105










NEW SOUTH WALES CRIME COMMISSION DIVISION
Statement of financial position as at 30 June 2013
ASSETS
Current Assets
Receivables
Total Current Assets
Non-Current Assets
Receivables
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Payables
Borrowings
Provisions
Total Current Liabilities
Total Non-Current Liabilities
Borrowings
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
EQUITY
Accumulated funds
Total Equity
Actual Actual
Notes 2013 2012
$’000 $’000
4 1,992 1,807
1,992 1,807
5 316
316 197
2,308 2,004
6 367 380
7 177 226
8 1,426 1,183
1,970 1,789
10 316 197
9 22 18
338 215
2,308 2,004
- -
- -
- -
The accompanying notes form part of these financial statements.
197
106



- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -




NEW SOUTH WALES CRIME COMMISSION DIVISION
Statement of changes in equity for the year ended 30 June 2013
Balance as at 1 July 2012
Net result for the year
Other comprehensive income:
Total other comprehensive income
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Increase / (decrease) in net assets from equity
transfers
Balance at 30 June 2013
Balance as at 1 July 2011
Net result for the year
Other comprehensive income:
Total other comprehensive income
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Increase / (decrease) in net assets from equity
transfers
Balance at 30 June 2012
The accompanying notes form part of these financial statements.
Actual Actual
2013 2012
$'000 $'000
- -
- -
- -
107
NEW SOUTH WALES CRIME COMMISSION DIVISION
Statement of cash flows for the year ended 30 June 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Payments
Employee related
Total Payments
Receipts
Cash reimbursements from the Crown Entity
Other
Total Receipts
NET CASH FLOWS FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
NET CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH FLOWS FROM FINANCING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH
Opening cash and cash equivalents
CLOSING CASH AND CASH EQUIVILANTS
The accompanying notes form part of these financial statements.
Actual Actual
2013 2012
$’000 $’000
14,001 12,597
14,001 12,597
350 735
13,651 11,862
14,001 12,597
- -
- -
- -
- -
- -
- -
- -
- -
108
     
    















1.
(a)
(b)
(c)  
(d)  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting entity
The New South Wales Crime Commission Division (the Division) is a division of the Government Service,
established pursuant to Part 3 of Schedule 1 to the Public Sector Employment and Management Act 2002 . It
is a not-for-profit entity (as profit is not its principal objective). It is consolidated as part of the NSW Crime
Commission’s Accounts. It is domiciled in Australia and its principal office is at PO Box Q566 QVB Post
Office, Sydney.
The New South Wales Crime Commission Division is a controlled entity of the New South Wales Crime
Commission.
The New South Wales Crime Commission Division’s objective is to provide personnel services to the New
South Wales Crime Commission.
The New South Wales Crime Commission Division commenced operations on 17 March 2006 when it
assumed responsibility for the employees and employee-related liabilities of the New South Wales Crime
Commission. The assumed liabilities were recognised on 17 March 2006 together with an offsetting receivable
representing the related funding due from the former employer.
The financial statement for the year ending 30 June 2013 was authorised for issue by the Commissioner on --
September 2013.
Basis of preparation
The Division’s financial statements are general purpose financial statements which have been prepared in
accordance with:
*
applicable Australian Accounting Standards (which include Australian Accounting Interpretations)
* the requirements of the Public Finance and Audit Act 1983 and Regulation and
*
the Financial Reporting Directions published in the Financial Reporting Code for NSW General
Government Sector Entities or issued by the Treasurer.
Generally, the historical cost basis of accounting has been adopted and the financial statement does not take
into account changing money values or current valuations. However, certain provisions are measured at fair
value. See notes 8 and 9.
The accrual basis of accounting has been adopted in the preparation of the financial statements, except for
cash flow information.
Judgements, key assumptions and estimates are disclosed in the relevant notes to the financial statements.
All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.
Income
Income is measured at the fair value of the consideration received or receivable. Revenue from the rendering
of personnel services is recognised when the service is provided and only to the extent that the associated
recoverable expenses are recognised.
Receivables
A receivable is recognised when it is probable that the future cash inflows associated with it will be realised
and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to
future cash flows from it expires or are transferred.
109





















1.
(e)
(f)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A receivable is measured initially at fair value and subsequently at amortised cost using the effective interest rate
method, less any allowance for doubtful debts. A short-term receivable with no stated interest rate is measured at
the original invoice amount where the effect of discounting is immaterial. An invoiced receivable is due for
settlement within thirty days of invoicing.
If there is objective evidence at year-end that a receivable may not be collectable, its carrying amount is reduced by
means of an allowance for doubtful debts and the resulting loss is recognised in the income statement. Receivables
are monitored during the year and bad debts are written off against the allowance when they are determined to
become irrecoverable. Any other gain or loss arising when a receivable is derecognised is also recognised in the
Statement of Comprehensive Income.
Payables
Payables include accrued wages, salaries and related on costs (such as payroll tax, fringe benefits tax and workers’
compensation insurance) where there is no certainty as the amount and timing of settlement.
A payable is recognised when a present obligation arises under the contract or otherwise. It is derecognised when
the obligation expires or is discharged, cancelled or substituted. A short-term payable with no stated interest rate is
measured at the original invoice amount where the effect of discounting is immaterial.
Employee benefits and other provisions
As a result of the amendments to the Public Sector Employment and Management Act 2002, the New South Wales
Crime Commission Division is responsible for employees and employee-related liabilities of the New South Wales
Crime Commission.
(a) Salaries and wages, annual leave, sick leave and on-costs
Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid sick leave that are due to
be settled within 12 months after the end of the period in which the employees render the service are recognised
and measured in respect of employees’ services up to the reporting date at undiscounted amounts based on the
amounts expected to be paid when the liabilities are settled.
Long-term annual leave is measured at nominal value, rather than at present value as the financial impact of
discounting on the portion of the long-term leave is not material.
Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken
in the future will be greater than the benefits accrued in the future.
The outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax, which
are consequential to employment; are recognised as liabilities and expenses where the employee benefits to which
they relate have been recognised.
(b) Long service leave and superannuation
The Division's liabilities for long service leave and defined benefit superannuation are assumed by the Crown Entity.
The Division's accounts for the liability as having been extinguished resulting in the amount assumed being shown
as part of the non-monetary revenue item described as 'Acceptance by the Crown Entity of employee benefits and
other liabilities'.
Long service leave is measured on a present value in accordance with AASB 119 Employee Benefits . This is
based on the application of certain factors (specified in NSWTC 12/06) to employees with five or more years of
service, using current rates of pay. These factors were determined based on an actuarial review to approximate
present value.
110































1.
(g)
(h)
(i)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The superannuation expense for the financial year is determined by using the forumlae specified in the Treasurer's
Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) are
calculated as a percentage of the employees' salary. For other superannuation schemes (i.e. State Superannuation
Scheme and State Authorities Superannuation Scheme), the expense is calculated as a multiple of the employees'
superannuation contributions.
Leased assets
Where a non-current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the
commencement of the lease term. The corresponding liability is established at the same amount. Lease payments
are allocated between the principal component and the interest expense.
Comparative information
Except when an Australian Standard permits or requires otherwise, comparative information is disclosed in respect
of the previous period for all amounts reported in the financial statements.
Comparative figures may have been adjusted to conform to changes in presentation for the current financial year.
New Australian Accounting Standards issued but not yet effective
NSW public sector entities are not permitted to early adopt new Australian Accounting Standards, unless Treasury
determines otherwise.
The following new Accounting Standards and Interpretations have not been applied and are not yet effective:
AASB 9, AASB 2010-7 and AASB 2012-6 regarding financial instruments
AASB 10 Consolidated Financial Statements
AASB 11 Joint Arrangements
AASB 12 Disclosure of Interests in Other Entities
AASB 13, AASB 2011-8 and AASB 2012-1 regarding fair value measurement
AASB 119, AASB 2011-10 and AASB 2011-11 regarding employee benefits
AASB 127 Separate Financial Statements
AASB 128 Investments in Associates and Joint Ventures
AASB 1053 and AASB 2010-2 regarding differential reporting
AASB 2010-10 regarding removal of fixed dates for the first time adopters
AASB 2011-2 regarding Trans Tasman Convergence - RDR
AASB 2011-4 removing individual KMP disclosure requirements
AASB 2011-6 regarding RDR and relief from consolidation
AASB 2011-7 regarding consolidation and joint arrangements
AASB 2011-12 regarding Interpretation 20
AASB 2012-1 regarding fair value measurement - RDR requirements
AASB 2012-2 regarding disclosures - offsetting financial assets and financal liailities
AASB 2012-3 regarding offsetting financial assets and financial liabilities
AASB 2012-4 regarding government loans - first time adoption
AASB 2012-5 regarding annual improvements 2009-2-11 cycle
AASB 2012-7 regarding RDR
AASB 2012-9 regarding withdrawlal of Interpretation 1039
AASB 2012-10 regarding transition guidance and other amendments
AASB 2012-11 regarding RDR requirements and other amendments
While the impact of these standards in the period of initial application has not been specifically quantified, they are
not expected to materially impact the financial statements.
111










2. EXPENSES
Employee related expenses
3. REVENUES
Personnel Services - NSW Crime Commission
Other
4. CURRENT ASSETS – RECEIVABLES
Employee Debtors
NSW Crime Commission
5. NON-CURRENT ASSETS – RECEIVABLES
Employee Debtors
6. CURRENT LIABILITIES – PAYABLES
Accrued salaries, wages and on-costs
7. CURRENT LIABILITIES – BORROWINGS
Unsecured
Finance leases
8. CURRENT LIABILITIES – PROVISIONS
Employee benefits and related on-costs
Recreation Leave
Long Service Leave on-costs
Total provisions
9. NON-CURRENT LIABILITIES – PROVISIONS
Employee benefits and related on-costs
Long Service Leave on-costs
10. NON-CURRENT LIABILITIES – BORROWINGS
Unsecured
Finance leases
2013
$’000
2012
$’000
14,001
14,001
12,597
12,597
13,651
350
14,001
11,862
735
12,597
177
1,810
1,987
226
1,581
1,807
316
316
197
197
367
367
380
380
177 226
177 226
1,078 854
348 329
1,426 1,183
22 18
22 18
316 197
316 197
112













11. COMMITMENTS FOR EXPENDITURE
The Division has a master finance lease with Westpac Bank relating to the leasing of motor vehicles on behalf of
certain employees for salary packages. These leases are entered into pursuant to a contract with the employee,
wherein the employee fully indemnifies the Division in relation to any costs and liabilities. These leases have been
disclosed to Treasury.
Minimum lease payment commitments in relation to finance leases payable as follows:
2013 2012
$’000 $’000
Finance Lease Commitments
Not later than one year 177 226
Later than one year and not later than five years 316 197
Minimum lease payments 493 423
Less: future finance charges (41) (33)
Present value of minimum lease payments 452 390
The present value of finance lease commitments is as follows:
Not later than one year 177 226
Later than one year and not later than five years 316 197
493 423
Classified as:
Current (Note 7) 177 226
Non current (Note 10) 316 197
493 423
There are no capital, operating or other expenditure commitments at year end.
12. CONTINGENT LIABILITIES
The Division is not aware of any contingent liabilities and contingent assets that will materially affect its financial
position as at the reporting date (2012: nil).
13. FINANCIAL INSTRUMENTS
The Division’s principal financial instruments are outlined below. These financial instruments arise directly from the
Division’s operations or are required to finance the Division’s operations. The Division does not enter into or trade
financial instruments for speculative purposes. The Division does not use financial derivatives.
The Division's main risks arising from financial instruments are outlined below, together with the Commission’s
objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures
are included throughout these Financial Statements.
113






       












13.
(a)
(b)
(c)
(d)
FINANCIAL INSTRUMENTS (continued)
The Management Team has overall responsibility for the establishment and oversight of risk management and
reviews and agrees policies for managing each of these risks. Risk management policies are established to identify
and analyse the risks faced by the Division, to set risk limits and controls and to monitor risks. Compliance with
policies is reviewed by the Internal Audit and Risk Committee on a continuous basis.
Financial instrument categories
Financial Assets
Class:
Receivables¹
Note
4 & 5
Category
Loans and receivables at amortised cost
Carrying
Amount
2013
$’000
2,308
Carrying
Amount
2012
$’000
2,004
Financial
Liabilities
Note Category Carrying
Amount
Carrying
Amount
2013 2012
Class: $’000 $’000
Financial liabilities measured at amortised
Payables² 6 367 380
cost
Financial liabilities measured at amortised
Borrowings 7 & 10 493 423
cost
Notes
1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7).
2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).
Credit risk
Credit risk arises when there is the possibility of the Division’s debtors defaulting on their contractual obligations,
resulting in a financial loss to the Division. The maximum exposure to credit risk is generally represented by the
carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial
assets of the Division, solely receivables. No collateral is held by the Division. The Division has not granted any
financial guarantees as it is managed by the NSW Crime Commission. Credit risk associated with the Division’s
financial assets, other than receivables, is managed through the selection of counterparties and establishment of
minimum credit rating standards.
Receivables - trade debtors
Receivables are primarily from the NSW Crime Commission and Employee Debtors. As such, there is no credit risk
or interest risk in relation to these balances. The carrying amount approximates fair value.
Liquidity risk
Liquidity risk is the risk that the Division will be unable to meet its payment obligations when they fall due. All lease
agreements which comprise the borrowings are held by the NSW Crime Commission and are not liable by the
Division.
Market risk
Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. The Division has no exposure to market risk as the borrowings are held by the NSW
Crime Commission.
114

13. FINANCIAL INSTRUMENTS (continued)
(e) Interest rate risk
Exposure to interest rate risk arises primarily through the Division's interest bearing liabilities. The Division has no
exposure to interest rate risk as the borrowings are held by the NSW Crime Commission.
14. EVENTS AFTER THE REPORTING PERIOD
There have been no significant events after the reporting period, which would materially affect these financial
statements.
End of audited financial statements
115
OFFICE OF THE NEW SOUTH WALES CRIME COMMISSION
(Special Purpose Service Entity)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
116






Office of the New South Wales Crime Commission
Financial Statements for the
Year Ended 30 June 2013
STATEMENT BY COMMISSIONER
Pursuant to section 45F of the Public Finance and Audit Act 1983 , I state that:
(a)
The accompanying financial statements and notes have been prepared in accordance with the
provisions of the Public Finance and Audit Act 1983 , the Financial Reporting Code for NSW
General Government Sector Entities, the Public Finance and Audit Regulation 2010, the
Treasurer’s Directions and applicable Australian Accounting Standards (which include Australian
Accounting Interpretations).
(b)  The statements present a true and fair view of the financial position as at 30 June 2013 and
transactions of the Office for the year then ended.
(c)  There are no circumstances that would render any particulars included in the Financial
Statements misleading or inaccurate.
Peter Hastings Kelly Yeung
Commissioner Finance Manager
Dated: 19 September 2013
117
119







OFFICE OF THE NEW SOUTH WALES CRIME COMMISSION
Statement of comprehensive income for the year ended 30 June 2013
Notes Actual Actual
2013 2012
$’000 $’000
Expenses excluding losses
Employee related 2 339 399
TOTAL EXPENSES EXCLUDING LOSSES 339 399
Revenue
Personnel Services - NSW Crime Commission 3 290 307
Other 3 49 92
Total revenue 339 399
Other comprehensive income - -
TOTAL COMPREHENSIVE INCOME - -
The accompanying notes form part of these financial statements.
120







OFFICE OF THE NEW SOUTH WALES CRIME COMMISSION
Statement of financial position as at 30 June 2013
Notes Actual Actual
2013 2012
$’000 $’000
ASSETS
Current Assets
4 Receivables 92 98
Total Current Assets 92 98
Total Assets 92 98
LIABILITIES
Current Liabilities
5 Payables 7 7
6 Provisions 85 91
Total Current Liabilities 92 98
Non-Current Liabilities
7 Provisions - -
Total Non-Current Liabilities - -
Total Liabilities 92 98
Net Assets - -
EQUITY
Accumulated funds - -
Total Equity - -
The accompanying notes form part of these financial statements.
121




















OFFICE OF NEW SOUTH WALES CRIME COMMISSION
Statement of changes in equity for the year ended 30 June 2013
Balance as at 1 July 2012
Net result for the year
Other comprehensive income:
Total other comprehensive income
Total comprehensive income for the year
Transactions with owners in their
capacity as owners
Increase / (decrease) in net assets from equity
transfers
Balance at 30 June 2013
Balance as at 1 July 2011
Net result for the year
Other comprehensive income:
Total other comprehensive income
Total comprehensive income for the year
Transactions with owners in their
capacity as owners
Increase / (decrease) in net assets from equity
transfers
Balance at 30 June 2012
The accompanying notes form part of these financial statements.
Actual Actual
2013 2012
$'000 $'000
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
122








OFFICE OF THE NEW SOUTH WALES CRIME COMMISSION
Statement of cash flows for the year ended 30 June 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Payments
Employee related
Total Payments
Receipts
Cash reimbursements from the Crown Entity
Other
Total Receipts
NET CASH FLOWS FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITES
NET CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH FLOWS FROM FINANCING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH
Opening cash and cash equivalents
CLOSING CASH AND CASH EQUIVALENTS
The accompanying notes form part of these financial statements.
Actual
2013
$’000
339
Actual
2012
$’000
399
339 399
49
290
339
92
307
399
- -
- -
- -
- -
- -
- -
- -
- -
123
       
       
       
      


1.
(a)
(b)
(c)
(d)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting entity
The Office of the New South Wales Crime Commission (the Office) is a division of the Government Service,
established pursuant to Part 1 of Schedule 1 to the Public Sector Employment and Management Act 2002 .
It is a not-for-profit entity (as profit is not its principal objective). It is consolidated as part of the NSW Crime
Commission’s Accounts. It is domiciled in Australia and its principal office is at PO Box Q566 QVB Post
Office, Sydney.
The Office of the New South Wales Crime Commission is a controlled entity of the New South Wales Crime
Commission.
The Office of the New South Wales Crime Commission’s objective is to provide personnel services to the
New South Wales Crime Commission.
The Office of the New South Wales Crime Commission commenced operations on 1 July 2006 when it
assumed responsibility for the employees and employee-related liabilities of the New South Wales Crime
Commission. The assumed liabilities were recognised on 1 July 2006 together with an offsetting receivable
representing the related funding due from the former employer.
The financial statements for the year ended 30 June 2013 have been authorised for issue by the
Commissioner on -- September 2013.
Basis of preparation
The Office’s financial statements are general purpose financial statements which have been prepared in
accordance with:

applicable Australian Accounting Standards (which include Australian Accounting Interpretations)
the requirements of the Public Finance and Audit Act 1983 and Regulation and
*
*  the Financial Reporting Directions published in the Financial Reporting Code for NSW General
Government Sector Entities or issued by the Treasurer.
Generally, the historical cost basis of accounting has been adopted and the financial statement does not
take into account changing money values or current valuations. However, certain provisions are measured
at fair value. See notes 6 and 7.
The accrual basis of accounting has been adopted in the preparation of the financial statements, except for
cash flow information.
Judgements, key assumptions and estimates are disclosed in the relevant notes to the financial statements.
All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.
Income
Income is measured at the fair value of the consideration received or receivable. Revenue from the
rendering of personnel services is recognised when the service is provided and only to the extent that the
associated recoverable expenses are recognised.
Receivables
A receivable is recognised when it is probable that the future cash inflows associated with it will be realised
and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to
future cash flows from it expire or are transferred.
A receivable is measured initially at fair value and subsequently at amortised cost using the effective
interest rate method, less any allowance for doubtful debts. A short-term receivable with no stated interest
rate is measured at the original invoice amount where the effect of discounting is immaterial. An invoiced
receivable is due for settlement within thirty days of invoicing.
124


      
       











1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e)
(f)
If there is objective evidence at year-end that a receivable may not be collectable, its carrying amount is
reduced by means of an allowance for doubtful debts and the resulting loss is recognised in the income
statement. Receivables are monitored during the year and bad debts are written off against the allowance
when they are determined to become irrecoverable. Any other gain or loss arising when a receivable is
derecognised is also recognised in the Statement of Comprehensive Income.
Payables
Payables include accrued wages, salaries and related on costs (such as payroll tax, fringe benefits tax and
workers’ compensation insurance) where there is no certainty as the amount and timing of settlement.
A payable is recognised when a present obligation arises under the contract or otherwise. It is derecognised
when the obligation expires or is discharged, cancelled or substituted. A short-term payable with no stated
interest rate is measured at the original invoice amount where the effect of discounting is immaterial.
Employee benefit provisions and expenses
As a result of the amendments to the Public Sector Employment and Management Act 2002, the Office of the
New South Wales Crime Commission is responsible for employees and employee-related liabilities of the
New South Wales Crime Commission.
(a) Salaries and wages, annual leave, sick leave and on-costs
Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid sick leave that are
due to be settled within 12 months after the end of the period in which the employees render the service are
recognised and measured in respect of employees’ services up to the reporting date at undiscounted
amounts based on the amounts expected to be paid when the liabilities are settled.
Long-term annual leave is measured at nominal value, rather than at present value as the financial impact of
discounting on the portion of the long-term leave is not material.
Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave
taken in the future will be greater than the benefits accrued in the future.
The outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax,
which are consequential to employment; are recognised as liabilities and expenses where the employee
benefits to which they relate have been recognised.
(b) Long service leave and superannuation
The Office's liabilities for long service leave and defined benefit superannuation are assumed by the Crown
Entity. The Office's accounts for the liability as having been extinguished resulting in the amount assumed
being shown as part of the non-monetary revenue item described as 'Acceptance by the Crown Entity of
employee benefits and other liabilities'.
Long service leave is measured on a present value in accordance with AASB 119 Employee Benefits . This
is based on the application of certain factors (specified in NSWTC 12/06) to employees with five or more
years of service, using current rates of pay. These factors were determined based on an actuarial review to
approximate present value.
The superannuation expense for the financial year is determined by using the forumlae specified in the
Treasurer's Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and First State
Super) are calculated as a percentage of the employees' salary. For other superannuation schemes (i.e.
State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is calculated as
a multiple of the employees' superannuation contributions.
Comparative information (g)
Except when an Australian Accounting Standard permits or requires otherwise, comparative information is
disclosed in respect of the previous period for all amounts reported in the financial statements.
Comparative figures may have been adjusted to conform to changes in presentation for the current financial
year.
125



























1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(h) New Australian Accounting Standards issued but not yet effective
NSW public sector entities are not permitted to early adopt new Australian Accounting Standards, unless
Treasury determines otherwise.
The following new Accounting Standards and Interpretations have not been applied and are not yet effective:
• AASB 9, AASB 2010-7 and AASB 2012-6 regarding financial instruments
• AASB 10 Consolidated Financial Statements
• AASB 11 Joint Arrangements
• AASB 12 Disclosure of Interests in Other Entities
• AASB 13, AASB 2011-8 and AASB 2012-1 regarding fair value measurement
• AASB 119, AASB 2011-10 and AASB 2011-11 regarding employee benefits
• AASB 127 Separate Financial Statements
• AASB 128 Investments in Associates and Joint Ventures
• AASB 1053 and AASB 2010-2 regarding differential reporting
• AASB 2010-10 regarding removal of fixed dates for the first time adopters
• AASB 2011-2 regarding Trans Tasman Convergence - RDR
• AASB 2011-4 removing individual KMP disclosure requirements
• AASB 2011-6 regarding RDR and relief from consolidation
• AASB 2011-7 regarding consolidation and joint arrangements
• AASB 2011-12 regarding Interpretation 20
• AASB 2012-1 regarding fair value measurement - RDR requirements
• AASB 2012-2 regarding disclosures - offsetting financial assets and financal liailities
• AASB 2012-3 regarding offsetting financial assets and financial liabilities
• AASB 2012-4 regarding government loans - first time adoption
• AASB 2012-5 regarding annual improvements 2009-2-11 cycle
• AASB 2012-7 regarding RDR
• AASB 2012-9 regarding withdrawlal of Interpretation 1039
• AASB 2012-10 regarding transition guidance and other amendments
While the impact of these standards in the period of initial application has not been specifically quantified, they
are not expected to materially impact the financial statements.
2013 2012
$’000 $’000
2. EXPENSES
Employee related expenses  339 399
339 399
3. REVENUE
Personnel Services – NSW Crime Commission   290 307
Other Revenue 49 92
339 399
4. CURRENT ASSETS – RECEIVABLES
NSW Crime Commission 92 98
92 98
5. CURRENT LIABILITIES - PAYABLES
Accrued salaries, wages and on-costs  7 7
7 7
126








2013 2012
6. CURRENT LIABILITIES - PROVISIONS $’000 $’000
Employee benefits and related on-costs
Recreation Leave 46 48
Long Service Leave on-costs 39 43
Total provisions 85 91
7. NON-CURRENT LIABILITIES – PROVISIONS
Employee benefits and related on-costs
Long Service Leave on-costs - -
- -
8. COMMITMENTS FOR EXPENDITURE
There are no operating or finance leases, capital or other expenditure commitments at year end.
9. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Office is not aware of any contingent liabilities and contingent assets that will materially affect its financial
position as at the reporting date (2012: nil).
10. FINANCIAL INSTRUMENTS
The Office’s principal financial instruments are outlined below. These financial instruments arise directly from
the Office’s operations or are required to finance the Office’s operations. The Office does not enter into or
trade financial instruments for speculative purposes. The Office does not use financial derivatives.
The Office's main risks arising from financial instruments are outlined below, together with the Commission’s
objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative
disclosures are included throughout these Financial Statements.
The Management Team has overall responsibility for the establishment and oversight of risk management and
reviews and agrees policies for managing each of these risks. Risk management policies are established to
identify and analyse the risks faced by the Office, to set risk limits and controls and to monitor risks.
Compliance with policies is reviewed by the Internal Audit and Risk Committee on a continuous basis.
(a) Financial instrument categories
Financial Assets
Class:
Receivables
1
Note
4
Category
Loans and receivables at amortised
cost
Carrying
Amount
2013
$’000
92
Carrying
Amount
2012
$’000
98
Financial Liabilities
Class:
Payables
2
Note
5
Category
Financial liabilities measured at
amortised cost
Carrying
Amount
2013
$’000
7
Carrying
Amount
2012
$’000
7
Notes
1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7).
2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).
127





10. FINANCIAL INSTRUMENTS (continued)
(b) Credit risk
Credit risk arises when there is the possibility of the Office’s debtors defaulting on their contractual obligations,
resulting in a financial loss to the Office. The maximum exposure to credit risk is generally represented by the
carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the
financial assets of the Office, solely receivables. No collateral is held by the Office. The Office has not granted
any financial guarantees as it is managed by the NSW Crime Commission. Credit risk associated with the
Office’s financial assets, other than receivables, is managed through the selection of counterparties and
establishment of minimum credit rating standards.
Receivables - trade debtors
All receivables are from the NSW Crime Commission. As such, there is no credit risk or interest risk in relation
to these balances. The carrying amount approximates fair value.
(c)        Liquidity risk
Liquidity risk is the risk that the Office will be unable to meet its payment obligations when they fall due. All
lease agreements which comprise the borrowings are held by the NSW Crime Commission and are not liable
by the Office.
(d) Market risk
Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. The Office has no exposure to market risk as the borrowings are held by the NSW
Crime Commission.
(e) Interest rate risk
Exposure to interest rate risk arises primarily through the Office's interest bearing liabilities. The Office has no
exposure to interest rate risk as the borrowings are held by the NSW Crime Commission.
11. EVENTS AFTER THE REPORTING PERIOD
There have been no significant events after the reporting period, which would materially affect these financial
statements.
End of audited financial statements
128





__________________________________
























CRIME COMMISSION ACT 2012
PARAGRAPH 57 (3) (a)
GUIDELINES
By resolution passed on 5 February 2013, pursuant to paragraph 57 (3) (a) of the
Crime Commission Act 2012, the Management Committee of the New South Wales
Crime Commission furnishes to the Crime Commission the following guidelines with
respect to the negotiation by the Commission of the terms of agreements regarding
orders made by consent to resolve finally proceedings under the Criminal Assets
Recovery Act 1990:
1.  Settlement negotiations may only be conducted by a person delegated by the
Commissioner to do so (‘the Delegated Negotiator’). Standing delegations may
only be made to the Assistant Commissioners, lawyers or members of the
Financial Investigation Division. Other staff members may only receive
delegations specific to particular cases.
2.  The terms of settlement may only be approved by the Commissioner or an
Assistant Commissioner with special legal qualifications (‘the Decision Maker’).
3.  When recommending terms of settlement to the Decision Maker the Delegated
Negotiator must be of the opinion that the terms of settlement represent the
most appropriate outcome for the Crown (measured not only by the absolute
value of any confiscation order involved but also having regard to other factors
such as an assessment of the commerciality of, and risks associated with,
continued litigation). In formulating this opinion the Delegated Negotiator is
to have regard to factors including:
129
Appendix 'A'




























(a)  the sufficiency of the evidence available to prove a relevant serious crime
related activity;
(b) the sufficiency of the evidence available to quantify the defendant’s
derivation of, or acquisition of property derived from, proceeds of illegal
activities;
(c)  the particulars of any previous confiscation proceedings taken by the
Commission against the defendant;
(d) the likelihood that the defendant would be able to discharge his or her
onus to prove that he or she has not derived proceeds of illegal activities;
(e)  the estimated value of the defendant’s interests in property and the degree
of futility in seeking to secure a larger order;
(f)  the likelihood of other person(s) successfully claiming an interest in
property that may be subject to an assets forfeiture order or may become
security for an proceeds assessment order or unexplained wealth order;
(g) the likelihood of a successful application for hardship being made from an
interest in property potentially subject to an assets forfeiture order;
(h) the likelihood of the defendant successfully applying for an order for the
release of reasonable legal expenses and the estimated quantum of such an
order; and
(i)  the cost to the Commission of continuing to litigate the matter rather
than settling the matter (such costs including not only the Commission’s
internal costs but also the estimated costs of briefing external counsel and
the opportunity cost of continued litigation of the matter rather than
devoting the Commission’s resources to potentially more productive other
matters) and the risks of a costs order being made against the
Commission.
4. The Negotiator must also confirm to the Decision Maker that:
130




















(a)  the financial investigation of the defendant has been appropriately
thorough and extensive (having regard to the likely return to the Crown)
and has been sufficient to provide a reasonable level assurance that all of
the defendant’s interests in property have been identified (in so far as it is
feasible to do so) and that all factors relevant to the making of the
confiscation order have been considered; and
(b) the financial investigation has been conducted by an appropriately
qualified and skilled person.
5.  Should the Decision Maker approve the Delegated Negotiator’s recommended
terms of settlement:
(a)  the Delegated Negotiator must certify that, having regard to factors that
include those listed above, the Delegated Negotiator is of the opinion that
the terms of settlement represent the most appropriate outcome for the
Crown (measured not only by the absolute value of any confiscation order
involved but also having regard to other factors such as an assessment of
the commerciality of, and risks associated with, continued litigation) (‘the
Delegated Negotiator’s Certification’); and
(b) the Decision Maker must certify that he or she is satisfied that the
Delegated Negotiator’s certification has been made on a reasonable basis.
131




______________________________________________




























































































NEW SOUTH WALES CRIME COMMISSION
ORGANISATION CHART
Executive Assistant
COMMISSIONER
Director (Criminal
Investigations)
Special Manager
HUMAN SOURCE
INTELLIGENCE
TEAM
INTELLIGENCE
DEVELOPMENT
TEAM
Assistant Director
(Criminal
Investigations)
ON-SITE JOINT
INVESTIGATIONS
TEAM
OFF-SITE JOINT
INVESTIGATIONS
TEAMS
HOMICIDE &
HISTORICAL
INVESTIGATIONS
TEAM
GANG
INVESTIGATIONS
TEAM
DRUG &
GENERAL
INVESTIGATIONS
TEAM
Director (Financial
Investigations)
CRIMINAL
INVESTIGATIONS
SUPPORT TEAM
ASSESSMENTS
TEAM
CRIMINAL
ASSETS
LITIGATION
SUPPORT TEAM
FORENSIC
ACCOUNTANCY
TEAM
POST-LITIGATION
& ENFORCEMENT
TEAM
Finance Manager
FINANCE TEAM
Executive
Manager
OPERATIONS
SUPPORT TEAM
MONITORING
TEAMS
BUILDING
SERVICES TEAM
Records &
Information
Manager
RECORDS
MANAGEMENT
TEAM
ICT SERVICES
TEAM
WARRANT
ADMINISTRATION
TEAM
Governance
Manager
GOVERNANCE
UNIT
Director (Special
Activities) and
Solicitor to the
Commission
Assistant Director
(Special
Activities)
SECURITY TEAM
LEGAL TEAM
SPECIAL
INVESTIGATIONS
TEAM
TECHNICAL
DEPLOYMENTS
TEAM
INVESTIGATIVE
ICT RESEARCH &
DEVELOPMENT
TEAM
Assistant
Commissioner
Assistant
Commissioner
CRIMINAL
INVESTIGATIONS
DIVISION
FINANCIAL
INVESTIGATIONS
DIVISION
OPERATIONS
SUPPORT
DIVISION
GOVERNANCE
UNIT
SPECIAL
ACTIVITIES
DIVISION
132
Appendix 'B'







































Public Interest Disclosures Act 1994 (NSW)
Report to the Minister for Police and Emergency Services,
pursuant to
section 31 of the Public Interest Disclosures Act 1994 (NSW)
Date: 23 July 2013
Reporting period: 1 July 2012 – 30 June 2013
Section 31 of the Public Interest Disclosures Act 1994 (‘the Act’) requires public authorities,
including the New South Wales Crime Commission (‘the Commission’), to report on certain matters
arising under the Act. The report must provide, within 4 months after the end of each reporting
year, the statistics prescribed by paragraphs 4 (2) (a), (b), (c), (d) and (e) of the Public Interest
Disclosures Regulation 2011 (‘the Regulation). The required statistics and further information are
below.
Statistics
The number of public officials who have made a public interest disclosure to the
Commission
1
The number of public interest disclosures received by the Commission relating to
corrupt conduct
0
The number of public interest disclosures received by the Commission relating to
maladministration
0
The number of public interest disclosures received by the Commission relating to
serious and substantial waste of public money
1
Appendix 'C'






































The number of public interest disclosures received by the Commission relating to
serious and substantial waste of local government money
0
The number of public interest disclosures received by the Commission relating to
government information contraventions
0
The number of public interest disclosures received by the Commission relating to
local government pecuniary interest contraventions
0
The number of public interest disclosures finalised by the Commission 0
Further information
During the reporting period, did the Commission have a public interest disclosures policy in
place?
Yes. The Commission had a public interest disclosures policy, titled ‘Internal Reporting Policy’, in
place throughout the reporting period.
The initial Internal Reporting Policy (version 1.00) was dated 1 October 2011. On 29 June 2012,
the Internal Reporting Policy was updated (version 2.00) and was subject to minor review on 10
July 2012 (version 2.01) and 7 March 2013 (version 2.02).
The Internal Reporting Policy was again subject to minor review and version 2.03 was released on
20 May 2013 and made available to all staff of the Commission.
Pursuant to the Government Information (Public Access) Act 2009 (NSW), the Commission’s
Internal Reporting Policy has been publicly available free of charge on the Commission’s website:
www.crimecommission.nsw.gov.au since 1 October 2011.
For staff of the Commission, the Internal Reporting Policy is also available on the Commission’s
Intranet.
134





























During the reporting period, what actions has the head of the Commission taken to ensure
that his staff awareness responsibilities under section 6E (1) (b) of the Public Interest
Disclosures Act 1994 (NSW) have been met?
The Commission’s measures have included:
1.  On 7 March 2013, the Internal Reporting Policy (version 2.02) was uploaded and made
available to staff through the Commission’s Intranet.
2.  On 20 May 2013, the Internal Reporting Policy (version 2.03) was uploaded and made
available to staff through the Commission’s Intranet and has been made available on the
Commission’s external website (www.crimecommission.nsw.gov.au).
3.  On 12 February 2013, an email was sent to staff of the Commission advising them:
o of the key objectives of the Act;
o of the current Disclosure Officers of the Commission to whom disclosures
can be made;
o  the Internal Reporting Policy is available on the Commission’s Intranet (with
hyperlink provided);
o  of an e-learning module to complete which is available on the Commission’s
Intranet (with hyperlink provided) if staff have not yet completed it; and
o  of the feedback form which must be submitted after completing the e-
learning module.
……………………………………………………
Peter Selby Hastings QC
Commissioner
23 July 2013
135

































Public Interest Disclosures Act 1994
Report to Ombudsman by public authorities,
pursuant to
section 6CA of the Public Interest Disclosures Act 1994
Date: 14 February 2013
Reporting period: 1 July 2012 – 31 December 2012
Section 6CA of the Public Interest Disclosures Act 1995 (‘the Act’) requires public authorities,
including the New South Wales Crime Commission (‘the Commission’), to report on certain matters
arising under the Act. First, the Report must provide, for the six month period that the Report
concerns, the statistics prescribed by paragraphs 4 (2) (b) and (c) of the Public Interest Disclosures
Regulation 2011 (‘the Regulation’). Second, the report must provide the further information
prescribed by paragraphs 4 (2) (d) and (e) of the Regulation. The required statistics and further
information are below.
Statistics
The number of public officials who have made a public interest disclosure to the
Commission
1
The number of public interest disclosures received by the Commission relating to
corrupt conduct
0
The number of public interest disclosures received by the Commission relating to
maladministration
0
Appendix 'D'


































The number of public interest disclosures received by the Commission relating to
serious and substantial waste of public money
1
The number of public interest disclosures received by the Commission relating to
serious and substantial waste of local government money
0
The number of public interest disclosures received by the Commission relating to
government information contraventions
0
The number of public interest disclosures received by the Commission during the
reporting period relating to local government pecuniary interest contraventions
0
The number of public interest disclosures finalised by the Commission 0
Further information
During the reporting period, did the Commission have a public interest disclosures
policy in place?
Yes. The Commission had a public interest disclosures policy, titled ‘Internal Reporting Policy’, in
place throughout the reporting period.
The initial Internal Reporting Policy (version 1.00) was dated 1 October 2011. On 29 June 2012,
the Internal Reporting Policy was updated, and the second version of the Internal Reporting Policy
was made available to all staff of the Commission.
The Internal Reporting Policy was subject to minor review and version 2.01 was released on 10
July 2012.
Pursuant to the Government Information (Public Access) Act 2009 (NSW), the Commission’s
Internal Reporting Policy has been publicly available free of charge on the Commission’s website:
www.crimecommission.nsw.gov.au since 30 September 2011.
For staff of the Commission, the Internal Reporting Policy is also available on the Commission’s
Intranet.
137































During the reporting period, what actions has the head of the Commission taken to
ensure that his staff awareness responsibilities under paragraph 6E (1) (b) of the
Act have been met?
The Commission’s measures have included:
1.  On 10 July 2012, the Internal Reporting Policy (version 2.01) was uploaded and made
available to its staff through the Commission’s Intranet and external website
(www.crimecommission.nsw.gov.au).
2.  On 8 August 2012, an email was sent to its staff who had not attended PID seminars held
on 16 and 30 November 2011 at the Commission, advising them that an e-learning module
has been made available on the Commission’s Intranet since June 2012, which was
produced by the Ombudsman’s Office. Staff were advised that the following topics are
covered by the module:
 the application of the PID Act;
 the types of conduct the PID Act covers, including examples;
 the protections provided by the PID Act;
 how to make a PID;
 what happens once a PID is made; and
 available help, including links to numerous resources.
Staff were also requested to complete the feedback form after completing the module.
3.  On 10 September 2012, another email was sent to Commission Staff who had not attended
PID seminars held on 16 and 30 November 2011 at the Commission advising that the
module is available on the Commission’s Intranet.
……………………………………………………
Peter Selby Hastings QC
Commissioner
14 February 2013
138

















____________________________________________________
























Law Enforcement (Powers and Responsibilities) Act 2002
Section 242A
ANNUAL REPORT BY THE
NEW SOUTH WALES CRIME COMMISSION
1 July 2012 –30 June 2013
Section 242A of the Law Enforcement (Powers and Responsibilities) Act 2002 (‘the Act’)
requires the Commissioner for the New South Wales Crime Commission (‘the Commission’)
to report annually on the exercise of powers under Part 5 of the Act with respect to covert
search warrants by staff members of the Commission. The report is to be provided within 4
months after each 30 June to the Minister for Police and the Attorney General and is to be
tabled in each House of Parliament as soon as practicable after it is received by the Attorney
General.
1. Applications for Covert Search Warrants
Paragraph 242A (3) (a) of the Act provides that the report is to specify the number of
applications for covert search warrants made under Part 5 of the Act and the number of
those applications that were granted.
The Commission made no such applications in 2012 – 2013.
2. Applications for Telephone Covert Search Warrants
Paragraph 242A (3) (b) of the Act provides that the report is to specify the number of
applications for telephone covert search warrants and the number of those applications that
were granted.
The Commission made no such applications in 2012 – 2013.
Appendix 'E'












































3. Covert Search Warrants Executed
Paragraph 242A (3) (c) of the Act provides that the report is to specify the number of covert
search warrants executed.
The Commission did not execute any covert search warrants under the Act in 2012 – 2013.
4. Seizures
Paragraph 242A (3) (d) of the Act provides that the report is to specify the number of covert
search warrants under which any things were seized.
The Commission did not seize any things under a covert search warrant under the Act in
2012 – 2013.
5. Substitution of Things
Paragraph 242A (3) (e) of the Act provides that the report is to specify the number of covert
search warrants under which any things were placed in substitution for seized things.
The Commission did not place any things in substitution for things seized under a covert
search warrant in 2012 – 2013.
6. Return or Retrieval of Things
Paragraph 242A (3) (f) of the Act provides that the report is to specify the number of covert
search warrants under which any things were returned or retrieved.
The Commission did not return or retrieve any things under a covert search warrant under
the Act in 2012 – 2013.
7. Sections 75A and 75B Powers
Paragraph 242A (3) (g) of the Act provides that the report is to specify the number of covert
search warrants under which the powers mentioned in sections 75A and 75B of the Act were
exercised.
The Commission did not exercise the powers mentioned in sections 75A and 75B under a
covert search warrant under the Act in 2012 – 2013.
140














































8. Things Tested
Paragraph 242A (3) (h) of the Act provides that the report is to specify the number of covert
search warrants under which any things were tested.
The Commission did not test any things under a covert search warrant in 2012 – 2013.
9. Arrests
Paragraph 242A (3) (i) of the Act provides that the report is to specify the number of arrests
made in connection with searchable offences in respect of which covert search warrants
were executed and the number of those arrests that have led to the laying of charges in
relation to the searchable offences concerned.
The Commission made no such arrests, and made no arrests that have led to the laying of
charges in relation to searchable offences, in 2012 – 2013.
10. Complaints Relating to the Execution of a Covert Search Warrant
Paragraph 242A (3) (j) of the Act requires the Commission to specify the number of
complaints that were made under any Act about conduct relating to the execution of a covert
search warrant by an executing officer and the number of those complaints that are, or have
been, the subject of an investigation under any Act.
No such complaints were made, and no complaints are or have been the subject of an
investigation under any Act, in 2012 – 2013.
11. Other Matters
Paragraph 242A (3) (k) of the Act requires the Commission to specify any other matters
requested by the Minister for Police or the Attorney General.
The Commission has received no requests made under this provision in 2012 – 2013.
……………………………………………
Peter Selby Hastings QC
Commissioner
16 August 2013
141
















____________________________________________________






















Law Enforcement and National Security (Assumed Identities) Act 2010
Section 35
ANNUAL REPORT BY THE
NEW SOUTH WALES CRIME COMMISSION
1 July 2012 –30 June 2013
Section 35 of the Law Enforcement and National Security (Assumed Identities) Act 2010
(‘the Act’) requires the Commissioner for the New South Wales Crime Commission (‘the
Commission’) to report annually on authorities for assumed identities. The report is to be
provided to the Minister as soon as practicable after the end of each financial year.
1. Authorities Granted and Authorities Cancelled
Paragraph 35 (1) (a) of the Act provides that the report is to specify the number of authorities
granted, and the number of authorities cancelled, during the year.
The Commission was granted seven authorities and no authorities were cancelled under the
Act in 2012 – 2013.
2. Description of Activities Undertaken
Paragraph 35 (1) (b) of the Act provides that the report is to contain a general description of
the activities undertaken by authorised persons when using assumed identities under the Act
during the year.
Commission staff using assumed identities were deployed to purchase covert equipment
and facilities and conduct related transactions and negotiations.
Appendix 'F'




































3. Applications Refused
Paragraph 35 (1) (c) of the Act provides that the report is to specify the number of
applications for authorities that were refused during the year.
The Commission had no refused applications under the Act in 2012 – 2013.
4. Fraud or Unlawful Activity
Paragraph 35 (1) (d) of the Act provides that the report is to contain a statement as to
whether or not any fraud or other unlawful activity was identified by an audit conducted
under section 37 of the Act during the year.
The Commission’s Internal Auditor had not identified any fraud or unlawful activity after
conducting an audit under section 37 of the Act in 2012 – 2013.
5. Other Information
Paragraph 35 (1) (e) of the Act requires the Commission to specify any other information
relating to authorities and assumed identities and the administration of the Act that the
Minister considers appropriate.
The Commission has no other information to report pursuant to this provision in 2012 –
2013.
……………………………………………
Peter Selby Hastings QC
Commissioner
16 August 2013
143
















____________________________________________________























Surveillance Devices Act 2007
Subsection 45 (3)
ANNUAL REPORT BY THE
NEW SOUTH WALES CRIME COMMISSION
1 July 2012 –30 June 2013
Pursuant to subsections 45 (1) and (2) of the Surveillance Devices Act 2007 (‘the Act’), the
Attorney General is to prepare a report as soon as practicable after the end of each financial
year, and in any event within 3 months after the end of the financial year, that includes the
information that is provided in Table 1 and Table 2 of this report in respect of the financial
year concerned, namely 1 July 2012 – 30 June 2013.
Subsection 45 (3) of the Act provides that the Attorney General may require the chief officer
of a law enforcement agency, including the New South Wales Crime Commission (‘the
Commission’), to furnish such information relating to the use of surveillance devices by law
enforcement officers of the Commission as is necessary to enable the Attorney General to
prepare the report.
1. Applications for Warrants
Paragraph 45 (1) (a) of the Act provides that the annual report is to specify the number of
applications for warrants by, and the number of warrants issued to, law enforcement officers
during the financial year concerned.
In the 2012 – 2013 financial year, law enforcement officers of the Commission made 82
applications for 172 surveillance device warrants, all of which were issued.
Appendix 'G'





























































2. Applications for Emergency Authorisations
Paragraph 45 (1) (b) of the Act provides that the annual report is to specify the number of
applications for emergency authorisations by, and the number of emergency authorisations
given to, law enforcement officers during the financial year concerned.
In the 2012 – 2013 financial year, a law enforcement officer of the Commission applied for
one emergency authorisation, which authority was given.
3. Warrants Issued and Emergency Authorisations Given by Device Type
Subsection 45 (2) of the Act requires that the information referred to in paragraphs 45 (1) (a)
and (b) must be presented in such a way as to identify the number of warrants issued and
emergency authorisations given in respect of each different kind of surveillance device.
This information referable to the Commission for the 2012 – 2013 financial year has been
presented in Table 1 and Table 2 below.
TABLE 1. NUMBER OF DEVICES AUTHORISED BY WARRANT BY DEVICE TYPE
Number of devices authorized by warrant —by device type
Number of
applications
Number of
warrants
issued
Data
surveillance
devices
Listening
devices
Optical
surveillance
devices
Tracking
devices
Combination
82 172 77 932 640 411 829
TABLE 2. NUMBER OF DEVICES AUTHORIZED BY AN EMERGENCY APPROVAL BY
DEVICE TYPE
Number of devices authorized by an emergency approval
—by device type
Number of
applications
Number of
authorisations
given
Data
surveillance
devices
Listening
devices
Optical
surveillance
devices
Tracking
devices
Combination
1 1 0 1 0 0 0
……………………………………………
Peter Selby Hastings QC
Commissioner
16 August 2013
145






























































Internal Audit and Risk Management Attestation
for the 2012-2013 Financial Year
for the New South Wales Crime Commission.
I, Peter Hastings, Commissioner for the New South Wales Crime Commission am of the
opinion that the Commission has internal audit and risk management processes in place that
are, subject to the following matters, compliant with the core requirements set out in Treasury
Circular NSW TC 09/08 Internal Audit and Risk Management Policy.
I am of the opinion that the internal audit and risk management processes for the
Commission depart from the following core requirement set out in Treasury Circular NSW TC
09/08 and that the circumstance giving rise to this departure has been excepted by the
Portfolio Minister, and that the Commission has implemented a practicable alternative
measure that will achieve a level of assurance equivalent to the requirement:
Requirement Practicable Alternative
Measures Implemented
Appointment of Pre-Qualified Person to
position of Independent member of the
Commission's Internal Audit and Risk
Committee
Andrew Koureas, an employee of the
Independent Commission Against Corruption
(who is not Pre-Qualified), with the approval
of the Portfolio Minister, was appointed as
the Independent member of the
Commission's Internal Audit and Risk
Committee for the period ended 30 June
2013.
I am of the opinion that the Commission's Internal Audit and Risk Committee is constituted
and operates in accordance with the independence and governance requirements of
Treasury Circular NSW TC 09/08.
Appendix 'H'

























































The Chair and other Members of the Internal Audit and Risk Committee are:
Name Position Appointed Expiry Date
Peter Whitehead Independent Chair 1 July 2009 30 June 2013
Andrew Koureas Independent Member 1 July 2009 30 June 2013
Marsha Canning Non-Independent
Member
13 December 2011 Resigned
20 May 2013
Jonathan Spark Non-Independent
Member
20 May 2013 20 May 2017
These processes, including the practicable alternative measure mentioned, provided a level
of assurance that enabled the senior management of the Commission to understand,
manage and satisfactorily control risk exposures.
Dated: 19 July 2013
Peter Hastings QC
Commissioner
147
















____________________________________________________























Government Information (Public Access) Act 2009
Subsection 125 (1)
ANNUAL REPORT BY THE
NEW SOUTH WALES CRIME COMMISSION
1 July 2012 –30 June 2013
Subsection 125 (1) of the Government Information (Public Access) Act 2009 (‘the Act’)
requires the New South Wales Crime Commission (being an agency within the meaning of
the Act), within 4 months after the end of each reporting year, to prepare an annual report on
its obligations under the Act. The report is to be submitted to the Minister and a copy is to
be provided to the Information Commissioner.
1. Subsection 7 (3) Review
Subclause 7 (a) of the Government Information (Public Access) Regulation 2009 (‘the
Regulation’) requires the annual report to specify the details of reviews conducted under
subsection 7 (3) of the Act.
Subsection 7 (3) of the Act provides that agencies must, at intervals of not more than 12
months, review its program for the release of government information under section 7 of the
Act to identify the kinds of government information held by the agency that should in the
public interest be made publicly available and that can be made publicly available without
imposing unreasonable additional costs on the agency.
The Commission’s annual review falls due by September each calendar year. The annual
review for 2012 – 2013 was conducted in an informal manner. It focused on whether or not
Commission policies could be made publicly available. It was determined that Commission
policies could not be made publicly available until completion of a general review of all
Appendix 'I'








































policies is conducted. Once polices have been reviewed and rewritten, it will be possible to
determine the extent to which they can be made publicly available. Policies that have been
revised are to be reviewed for release in the next review due by September 2013.
2. Number of Access Applications
Subclause 7 (b) of the Regulation provides that the annual report must include the total
number of access applications received by the agency during the reporting year (including
withdrawn applications but not including invalid applications).
During the 2012 – 2013 financial year, the total number of access applications received by
the Commission was five.
3. Number of Applications Refused
Subclause 7 (c) of the Regulation provides that the annual report must include the total
number of access applications received by the agency during the reporting year that the
agency refused, either wholly or partly, because the application was for the disclosure of
information referred to in Schedule 1 to the Act (information for which there is conclusive
presumption of overriding public interest against disclosure).
During the 2012 – 2013 financial year, the Commission received nine applications that were
refused, either wholly or partly, because they sought information that was within the
categories referred to in Schedule 1, namely excluded information.
4. Statistical Information About Access Applications
Subclause 7 (d) of the Regulation requires an agency’s annual report to set out information
in the form required by Schedule 2 to the Regulation.
Schedule 2 prescribes eight tables to be included in the annual report relating to statistical
information about access applications.
The eight tables on the following pages detail the statistical information of the Commission
during the 2012 – 2013 financial year.
149












































































Table A: Number of applications by type of applicant and outcome*
Access
granted in
full
Access
granted
in part
Access
refused
in full
Information
not held
Information
already
available
Refuse to
deal with
application
Refuse to
confirm /
deny
whether
information
is held
Application
withdrawn
Media 0 0 0 0 0 0 0 0
Members of
Parliament
0 0 0 0 0 0 0 0
Private
sector
business
1 0 2 0 0 0 0 0
Not for profit
organis-
ations or
community
groups
0 0 0 0 0 0 0 0
Members of
the public
(application
by legal
represent-
tative)
0 0 0 0 0 0 0 0
Members of
the public
(other)
1 1 6 2 0 1 0 0
*More than one decision can be made in respect of a particular access application. If so, a
recording must be made in relation to each such decision. This also applies to Table B.
Table B: Number of applications by type of application and outcome
Access
granted in
full
Access
granted
in part
Access
refused
in full
Information
not held
Information
already
available
Refuse to
deal with
application
Refuse to
confirm / deny
whether
information is
held
Application
withdrawn
Personal
information
applications*
0 0 0 1 0 0 0 0
Access
applications
(other than
personal
information
applications)
2 1 8 1 0 0 0 0
Access
applications
that are partly
personal
information
applications and
partly other
0 0 0 0 0 0 0 0
*A personal information application is an access application for personal information (as
defined in clause 4 of Schedule 4 to the Act) about the applicant (the applicant being an
individual).
150

















































Table C: Invalid applications
Reason for invalidity Number of applications
Application does not comply with formal requirements
(section 41 of the Act)
0
Application is for excluded information of the agency (section
43 of the Act)
9
Application contravenes restraint order (section 110 of the
Act)
0
Total number of invalid applications received 9
Invalid applications that subsequently became valid
applications
0
Table D: Conclusive presumption of overriding public interest against disclosure:
matters listed in Schedule 1 of the Act
Number of times consideration
used*
Overriding secrecy laws 0
Cabinet information 0
Executive Council information 0
Contempt 0
Legal professional privilege 1
Excluded information 9
Documents affecting law enforcement and public safety 0
Transport safety 0
Adoption 0
Care and protection of children 0
Ministerial code of conduct 0
Aboriginal and environmental heritage 0
*More than one public interest consideration may apply in relation to a particular access
application and, if so, each such consideration is to be recorded (but only once per
application). This also applies in relation to Table E.
Table E: Other public interest considerations against disclosure:
matters listed in table to section 14 of the Act
Number of occasions when
application not successful
Responsible and effective government 0
Law enforcement and security 0
Individual rights, judicial processes and natural justice 0
Business interests of agencies and other persons 0
Environment, culture, economy and general matters 0
Secrecy provisions 0
Exempt documents under interstate Freedom of Information
legislation
0
151













































Table F: Timeliness
Number of applications
Decided within the statutory timeframe (20 days plus any
extensions)
12
Decided after 35 days (by agreement with applicant) 1
Not decided within time (deemed refusal) 0
Total 13
Table G: Number of applications reviewed under Part 5 of the Act (by type of review and
outcome)
Decision
varied
Decision
upheld
Total
Internal review 0 0 0
Review by Information Commissioner* 0 0 0
Internal review following recommendation under section 93 of
Act
0 0 0
Review by ADT 0 0 0
Total 0 0 0
*The Information Commissioner does not have the authority to vary decisions, but can make
recommendation to the original decision-maker. The data in this case indicates that a
recommendation to vary or uphold the original decision has been made.
Table H: Applications for review under Part 5 of the Act (by type of applicant)
Number of applications for
review
Applications by access applicants 0
Applications by persons to whom information the subject of
access application relates (see section 54 of the Act)
0
……………………………………………
Peter Selby Hastings QC
Commissioner
16 August 2013
152

































































ANNUAL REPORT INDEX
App. refers to an appendix to this report.
A
abbreviations viii–x
access inside front cover
account payment performance 70–71
accountability 5, 7–8, 13–14, 61–67
aims and objectives 1–2, 15
ammunition 8, 37–39, 41–44 see also
firearms
amphetamine-type stimulants 25, 26, 37–38,
40–43, 45 see also precursors
annual report
availability 68
exemptions 68
production costs 4–5
requirements 4, 25, 29, 68
applications to Supreme Court for review of
Commission decisions 23
Arkansas (Reference) 34, 37–38
arrest warrants 32
arrests 34–36, 44–45, App. D
assets (Commission) 72
assets, confiscation of see confiscation
Assistant Commissioners 5, 9
assumed identities 21, 32, App. F
audit 61, 62–64, App. F
Australian Crime Commission 22–23, 26, 31
Australian Crime Commission, X7 v 22–23
Australian Customs and Border Protection
Service 6, 26, 30, 31, 53
aviation security identification card 25
B
Bagnoo (Reference) 34
Barr, Graham QC 65
building management 11–12
C
Cabarita (Reference) 34
Calga (Reference) 34
cannabis 42
case studies 44–45
cash seizures 37–42, 49, 50, 58
CB, R v 22
charges 34–36, 44–45
charter 1–2
cigarettes (seizure of) 39
clandestine drug laboratories 26, 41, 43
cocaine 25, 27, 38–42, 45
coercive powers see examinations; hearings;
statutory powers
Collie (Reference) 34
Commission
constitution 1
functions, aims, objectives 1, 15
management 5–6, 9, 68
performance 6–8
personnel 9–10
publications 68
structure 9, App. B
Commissioner 1, 5, 9, 63
153






































































committees
Ethics Committee 62
Internal Audit and Risk Committee 62–64
Management Committee 3–4, 15–16
Community Relations Commission 68
complaints 12–14, 16, 23, 65–66, App. C,
App. D
Complaints Handling Policy 13
Internal Reporting Policy 12
compliance index 73–75
Confiscated Proceeds Account 18
confiscation 46–59
appeals 54–55
assets forfeiture orders 17–18, 20, 47,
51–56, 58
attempts by criminals to avoid 26, 49, 57–59
breach of warranty, order for 52, 53, 56
case study 57–59
costs 55, 67
examinations 21–22
exclusion orders 18, 54–55
legal expenses 19, 20–21, 51, 55, 67
litigation 21–22
living expenses 51, 55
orders (CAR Act) 20, 48, 56
proceeds assessment orders 17–18, 20, 47,
51–56
realisable value of orders 7–8, 50–56
referrals 46, 48, 53
restraining orders 19, 50
results 49–52, 56
search warrants 48
settlement by negotiation 16, 19–20, 21,
46–47, App. A
statutory information gathering 48
undisclosed interest in property 52, 53, 56
unexplained wealth orders 17–18, 20, 47,
51–54, 56, 58
value of orders 53–54
Connecticut (Reference) 34
constitution of Commission 1
consultants 68
ContactNT 40 see also precursors
controlled entities 10, 101–128
controlled operations 21, 24, 32, 64
Cook, NSW Crime Commission v 6, 7, 20–21,
67
Corporate Plan 2
counterfeit currency 43
court proceedings involving the Commission
21–23
credit card certification 72
Crime Commission Act 2012 1, 5, 14, 15, 17,
29, 61, 66
Criminal Assets Recovery Act 1990 17–21
Criminal Investigations Division
case studies 44–45
investigation management 30
joint task forces 30–31
relationship with Financial Investigation
Division 46
results 8, 33–43
use of statutory powers 31–33
Curban (Reference) 44
customs officers 6, 26, 30, 31, 53
153



































































D
Dargan (Reference) 35
description of patterns or trends, and nature
and scope of organised crime 25–28
Director (Corporate Services) 6
Director of Public Prosecutions Act 1986 23
Disability Action Plan 68
disclosure obligations 23
dissemination 60
drugs 8, 25–28
ATS 25, 26, 37–38, 40–43, 45
clandestine laboratories 26, 41, 43
cocaine 25, 27, 38–42, 45
heroin 25, 40–41, 43, 57–58
importation of 25, 31
MDMA 37–38, 40–43, 45
methylamphetamine 25, 57
seizures of 25, 37–45
violence related to supply of 27–28
E
Earp (Reference) 35
ecstasy (MDMA) 37–38, 40–43, 45
electronic surveillance 28, 33
Elsmore (Reference) 35
Eltham (Reference) 35, 38–39, 44–45
employees see personnel
encryption, of mobile phones 28
Engadine (Reference)
ephedrine 26 see also precursors
equal employment opportunity 68
Ethics Committee 62
examinations (CAR Act) 48 see also hearings
exemptions 68
explosives 38, 43, 44
external audit 64
F
Federal (Reference) 35, 39
Fernmount (Reference) 35
Financial Investigations Division
case study 57–59
management of proceedings 46–47
relationship with Criminal Investigation
Division 46
results 49–56
use of statutory powers 48
see also confiscation
financial statements 76–128
firearms 8, 27, 28, 37–44
fraud 26–27
freedom of information see Government
Information (Public Access) Act 2009
functions of Commission 1–2
funds granted to non-government
community organisations 72
G
Garra (Reference) 35
Gilmore (Reference) 35, 40
glossary viii–x
governance 5, 61, 64
Government Information (Public Access) Act
2009 68, App. I
Government Property NSW 11–12
grants 72
Green, Neil (murder of) 44
153


































































I
H
Halton (Reference) 35
Hampton (Reference) 35
Hastings, Peter 9
hearings 22–23, 32, 44, 48
heroin 25, 40–41, 43, 57–58
Hilldale (Reference) 35, 40
Holbrook (Reference) 35
homicide 27, 44
human resources 9–11, see also staff
Huntley VIII (Reference) 35
IARC 8, 62–64
ice (crystal methylamphetamine) 25, 39
Ilford (Reference) 35
information and communications
technology 11, 72
Inkster, Robert 9
Inspector of the Commission 13, 16, 65, 66
insurance activities 72
intelligence 6, 30–31, 60
interception of telecommunications 21, 28, 33
internal audit 61, 62–64, App. F
Internal Audit and Risk Committee 8, 62–64
Internal Audit and Risk Management Policy
Attestation 64, App. H
interpreters 68
investigations
criminal investigations 30–45
financial investigations 46–59 see also
confiscation
management of 30–31
multi-agency 6, 30–31, 56–57
results 34–43
J
Jiggi (Reference) 35, 40
Joint Asian Crime Group 31
joint investigations 30–31, 49, 56–57
Joint Counter Terrorism Team 30
Joint Organised Crime Group 31, 35, 40
Polaris Task Force 4, 6, 31, 35, 41
K
Kamarah (Reference) 35
Kelso (Reference) 35
Kingswood (Reference) 35
L
land disposal 72
Lapstone (Reference) 35
Law Enforcement and National Security
(Assumed Identities) Act 2010 21, App. F
Law Enforcement (Controlled Operations) Act
1997 21, 24, 64
Law Enforcement (Powers and
Responsibilities) Act 2002 App. E
Lee (Jason), NSW Crime Commission v 21
legal change 1, 5, 14–17, 23–24, 29, 61,
66–67
recommendation for 29
legislative compliance review 61
letter of submission i, ii
Limbri (Reference) 35
litigation 21–23
153


































































M
major assets 72
management and activities 2–9, 25–28, 30–68
Management Committee
functions 3–4
guidelines 4, 15, 16, 21, 46–47, 67, App. A
members 3
Management Team 9
maritime security identification card 25
matters referred for investigation 4
McCarthy, R v 22
MDMA 37–38, 40–43, 45
methylamphetamine 25, 57
Milperra (Reference) 35
Minister 2
money laundering 26–27, 57
Multicultural Policies and Services
Plan 68
murder 27, 44
N
Nabiac (Reference) 35, 40
Neville (Reference) 35
New South Wales Crime Commission
Act 1985 1, 15
notices to produce 23, 32, 48
NSW Police Force 6, 26, 30, 44–45, 57–58
O
Oaths Act 1900 24
Oaths Regulation 2011 24
Objectives of Commission 1
occupational health and safety see work
health & safety
OCD Strategy 6, 7
Ombudsman (Cth) 64
Ombudsman (NSW) 64, App. D
Ootha (Reference) 35, 40
Oranmeir (Reference) 35
organisation chart App. B
organised crime 6, 7
nature and scope 25–28
waterfront 25
Organised Crime Disruption Strategy 6, 7
Organised Crime (Targeting) Squad 44–45
Organised Crime Working Group 29
overseas travel 72
oversight 5, 7–8, 13–14
P
Pambula (Reference) 35
Parliamentary Joint Committee on Office of
Ombudsman, Police Integrity Commission
and Crime Commission 7, 16, 66
partner agencies 6, 30–31
Patten Inquiry 5, 13, 15, 61
payment of accounts 69–70
Peelwood (Reference) 35, 41
performance 6–8, 34–36
indicators 7, 66
personnel 9–10
remuneration of statutory officers 9
security vetting 16–17
training 12
Pimlico (Reference) 35
Polaris, Task Force 4, 6, 31, 35, 41
Police Integrity Commission 14, 66–67
153



































































Police Integrity Commission Act 1996 14
policy and procedure review 61
precursors (for drug manufacture) 26, 37–45
Privacy and Personal Information Protection
Act 1998 68
Privacy Management Plan 69
procedure and policy review 61
proceeds of crime see confiscation
professional facilitators of crime 27
projects 11–12
prosecutions 34–36
pseudoephedrine 26, 37–38, 40–42, 44–45
public interest disclosures 12–13, App. C,
App. D
Public Interest Disclosures Act 1994 12–13,
App. C, App. D
publications 4, 68
purchase of major assets 72
Q
Quandialla (Reference) 35, 41
Queanbeyan (Reference) 35
R
R v CB 22
R v McCarthy 22
R v Seller 22
Ramsgate (Reference) 36
Raworth (Reference) 36
recommendations for changes in laws 29
records management 11
references 4, 15–16
remittance agencies, alternative 26
into the New South Wales Crime
Commission 5, 13, 15, 61
research and development 11
risk management 61–64
S
Salisbury (Reference) 36
SD v NSW Crime Commission 23
search warrants 32, App. E
seizures 8, 25, 37–45, App. D
self-incrimination 21–23
Seller, R v 22
Senior Executive Service 10
serious crime concern 15
shootings 8, 27–28
Singleton, Peter 9
Special Commission of Inquiry into the NSW
Crime Commission 5, 13, 15, 61
staff, see personnel
statutory officers 9
statutory powers 31–33
steroids 39–43
summary review of operations 4, 5, 14–60
surveillance devices 21, 33
Surveillance Devices Act 2007 21, 24, 33, 60,
64, App. G
T
Tarago (Reference) 36
task forces 4, 6, 30–31
technology, impact on investigations 28
telecommunications interception 21, 28, 33
Telecommunications (Interception and Access)
Act 1979 (Cth) 21, 33, 60, 64
Report of the Special Commission of Inquiry
153






























terrorism 30, 35
training 12
travel 72
trends in organised crime 25–28
U
Unanderra (Reference) 36, 41
V
Varroville (Reference) 36
Victims Compensation Fund 18
W
Wakeley (Reference) 36, 42
Walcha (Reference) 36, 42
warrants issued under s. 18AA of the 1985
Commission Act or s. 36 of the 2012
Commission Act 32
waste management 68
waterfront crime 25, 31 see also Polaris, Task
Force
weapons 37–43, 44–45
Winjana (PIC investigation) 66–67
work health & safety 68
X
X7 v Australian Crime Commission 22–23
Y
Yallah (Reference) 36
Yowrie (Reference) 36, 42
153