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ONE CLEAR DAY SHARES The story of Brett Wood’s bravery under fire TUMBLE WEATHER Cloudy
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Bugged:SirKen Jones targeted by theOPI

Covert operation sparks inquiry by Ombudsman

EXCLUSIVE

By RICHARD BAKER and NICK McKENZIE

AGE INVESTIGATIVE UNIT

VICTORIA’S Office of Police Integrity has undertaken elec- tronic surveillance of departing deputy police commissioner Sir Ken Jones in an operation that is also monitoring the communic- ations of at least one staff mem- ber of a ministerial office. Senior police and govern- ment sources have confirmed that the OPI has activated its extraordinary powers after a complaint lodged by police chief commissioner Simon Overland against Sir Ken. It has for weeks been intercepting the communications of Sir Ken, his wife and other close associates. The Age has learnt the opera- tion also involves attempts to monitor the communications of one or more people working in sensitive Victorian government positions who have been identi- fied as supporters of the former British policeman. In response to the possibility that Sir Ken was an OPI target, it is understood that his house was swept for bugs. The Age has also learnt that the Office of Police Integrity is now itself under investigation over concerns that its pursuit of Sir Ken at the request of Mr Overland may be an abuse of the powers given to it to uncover serious police corruption. Ombudsman George Brouwer is believed to have launched a probe into the use of powers by the OPI and other issues. The developments have left the state and its government facing extraordinary turmoil at the highest levels of its law enforcement structures, includ- ing a beleaguered Chief Com-

enforcement structures, includ- ing a beleaguered Chief Com- missioner of Police and now a key watchdog

missioner of Police and now a key watchdog under suspicion and investigation by another. The OPI inquiry into Sir Ken comes months before the police watchdog will be replaced by a new anti-corruption body. The OPI is believed to be examining interaction between Sir Ken and one or more public servants or ministerial aides relating to his dispute with Mr Overland and the manner in which he left the Victoria Police. Mr Overland has never explained why he ordered Sir Ken to leave his office immedi- ately on Friday May 6 — four days after the Welsh-born policeman announced his resig- nation and intention to finish in August — or why he asked the OPI to probe his deputy. As reported in The Age last month, Mr Overland visited OPI deputy director Paul Jevtovic just hours before he ordered Sir Ken out on May 6. A senior police source said Mr Jevtovic has been in charge of the operation targeting Sir Ken while OPI director Michael Strong was away on holiday in recent weeks. He recently returned to work. It is known that Mr Overland suspected Sir Ken of leaking information about the compet- ency, independence and

leaking information about the compet- ency, independence and Continued PAGE 2 SIR KEN JONES Resigned as

Continued PAGE 2

SIR KEN JONES Resigned as Victoria Police deputy commissioner last month amid claims of tensions

SIR KEN JONES

Resigned as Victoria Police deputy commissioner last month amid claims of tensions with chief Simon Overland, including over the reporting of crime statistics.

Overland, including over the reporting of crime statistics. SIMON OVERLAND Ordered Sir Ken from his office

SIMON OVERLAND

Ordered Sir Ken from his office on May 6 — on the same day he asked the Office of Police Integrity to investigate him. Is believed to have suspected his deputy of leaking confidential information about the death of Carl Williams.

confidential information about the death of Carl Williams. OPI DEPUTY DIRECTOR PAUL JEVTOVIC Launched electronic

OPI DEPUTY DIRECTOR PAUL JEVTOVIC

Launched electronic surveillance of Sir Ken, and at least one state government employee, after the complaint from Mr Overland.

government employee, after the complaint from Mr Overland. OMBUDSMAN GEORGE BROUWER Has launched an investigation into

OMBUDSMAN

GEORGE

BROUWER

Has launched an investigation into the OPI over concerns its pursuit of Sir Ken might be an abuse of powers.

S PECIAL R EPORT

Reform set to reopen Walsh St

By JOHN SILVESTER

THE investigation into the Walsh Street murders of Con- stables Steven Tynan and Damian Eyre is set to be reopened when the state gov- ernment introduces ground- breaking legislation overturning the 800-year-old-laws of double jeopardy. ‘‘Certainly Walsh Street is one of the cases that could res- ult in a retrial if a court is satis- fied there is sufficient new and compelling evidence. It is a good example of the sort of case that could fall within the new rules,’’ Attorney-General Robert Clark told The Age. He said he expected that legislation giving the Court of Appeal the power to grant retri- als despite previous acquittals will be ready to be put to Parlia- ment later this year. Mr Clark said the age of the failed Walsh Street prosecution would not create an obstacle to a potential retrial as there would be no time constraints written into the new law. ‘‘It will be designed so that it will apply to past cases.’’ Four men, Victor George Peirce, Peter David McEvoy, Tre- vor Pettingill and Anthony Farrell were acquitted of the Octo- ber 12, 1988 ambush murder of the two policemen. Taskforce investigators and relatives of the victims have been lobbying for an inquest into the case. Last year homicide squad detectives began to update the case to prepare for a possible coronial hearing. Mr Clark said the govern- ment was committed to its pre- election promise to abolish double jeopardy. The policeman who jointly headed the taskforce investiga- tion into Walsh Street, former Detective Inspector John Noonan, said if a new trial was held he was confident of gaining convictions: ‘‘It is never too late for justice and justice has never been delivered in this case.’’

and justice has never been delivered in this case.’’ iPad edition Download The Age iPad at

iPad edition

Download The Age iPad at the iTunes App Store to see:

An extended version of this story, video and interactive graphic.

The Attorney-General’s department has begun discus- sions with senior police and the Office of Public Prosecutions to develop the new law. Under the likely model the Chief Commissioner will brief the Director of Public Prosecu- tions on cases where there is new and compelling evidence not available at the time of the first trial, suggestions a jury has been nobbled, or proof a wit- ness has committed perjury. If the DPP agrees, prosecu- tors will make a submission to the Court of Appeal asking for the acquittal to be set aside and a new trial to be held. Assistant Commissioner (Crime) Graham Ashton said: ‘‘If and when the legislation is intro- duced, we will of course look at what new options this might present because we remain firmly committed to achieving justice for the families of Steven Tynan and Damian Eyre.’’ Mr Clark stressed the general rule of double jeopardy would remain and the new law would only relate to a limited class of cases, including murder and designated serious offences. Investigators say there are several potentially fertile grounds to justify a review of Walsh Street including:

Star prosecution witness

of Walsh Street including: ■ Star prosecution witness Continued PAGE 2 Editorial PAGE 12 LandmarkRio deal

Continued PAGE 2 Editorial PAGE 12

prosecution witness Continued PAGE 2 Editorial PAGE 12 LandmarkRio deal to deliver billions toAborigines By

LandmarkRio deal to deliver billions toAborigines

By MICHAEL GORDON

NATIONAL EDITOR

TRADITIONAL Aboriginal owners stand to receive more than $2 billion over 40 years under a watershed agreement with Rio Tinto that sets a new standard for negotiations between miners and indigenous Australia. The deal also has the poten- tial to tackle profound disad- vantage in the Pilbara region of Western Australia.

Seven years in the making, the agreement will allow about 40 new iron ore mines to pro- ceed in an area of 70,000 square kilometres, with the company signing up to bold targets to employ and engage as suppliers local indigenous communities, to protect significant sites and to back native title claims. In terms of scale, breadth, duration and the inclusion of fixed obligations on both sides, the agreement is unpreceden- ted, with Rio Tinto chief

▲ 0 300KM N INDIAN OCEAN Port Hedland Karratha Exmouth Onslow Pilbara Nanutarra Newman WESTERN
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executive Sam Walsh declaring:

‘‘It’s good for the Aboriginal community. It’s good for our

business. It also happens to be

the right thing to do. ‘‘This is of a huge scale, and it’s a huge opportunity for both the company and the Aboriginal groups. What we’re doing here will help set a new standard across Australia.’’ Indigenous groups described the agreement as the most com- prehensive ever undertaken, delivering an income stream, education and job opportunit- ies, access to supply contracts and a thorough set of mining

exclusion zones to protect signi- ficant sites. In return, indig- enous communities will commit to boosting school attendance and backing partnerships aimed at equipping people to fill jobs at Rio and in support busi- nesses. While the financial agree- ment with five native title groups is confidential, it is believed to include a fixed rev- enue share of iron ore sales that are predicted to increase from about 220 million tonnes a year

to more than 400 million tonnes. Indigenous groups will devote a portion of the revenue to a ‘‘future fund’’ designed to ensure that coming generations share in the deal’s benefits. ‘‘One of the things that makes this historic is that past agreements were based only on ‘best endeavours’ [to improve outcomes for indigenous people],’’ said Simon Hawkins, chief executive of the Yamatji Marlpa Aboriginal Corporation, which covers four of the five

claim groups. ‘‘This agreement is outcomes-focused, with requirements on traditional owners and Rio Tinto to meet commitments.’’ The deal comes more than 15 years after then Rio Tinto chief Leon Davis advocated an end to an era of generally heavy- handed and exploitative treat- ment of traditional owners by mining companies. It follows a study five years ago that found that 40 years of

follows a study five years ago that found that 40 years of Continued PAGE 2 Happy

Continued PAGE 2

Happy 80th birthday, Sir Gus NEWS & FOCUS
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Sir Ken Jones bugged

From PAGE 1 PAGE 1

accountability of the police force to the media or political figures. But it is not known whether Premier Ted Baillieu or Police Minister Peter Ryan are aware of the extent of the OPI probe into Sir Ken and the tar- geting of one or more people working out of Treasury Place. Both Mr Baillieu and Mr Ryan have repeatedly said that they do not know the reason Mr Overland told Sir Ken to go. Sir Ken had briefed Mr Over- land on the contents of a sensit- ive report into murders committed by parolees just hours before he was ordered to leave. The report is believed to have found up to four murders could have been prevented had police data bases kept better track of parolees. Several inquires into Mr Overland’s command of the police and the wider adminis- tration of justice are under way. The government has engaged

Jack Rush, QC, to investigate the structures of police command. Mr Brouwer is also investigating whether Mr Overland was influ- enced by pressure from the for- mer Labor government to release inaccurate and incom- plete crime statistics just before last November’s state election. The Age has previously repor- ted that Mr Overland was warned by senior police figures, including media director Nicole McKe- chnie, not to comply with the for- mer government’s request. Mr Brouwer is also investig- ating the circumstances that led to gangland figure and potential police corruption witness Carl Williams being moved from isol- ation at Barwon Prison last year. Prisoner Matthew Johnson has been charged with his murder. Department of Justice secret- ary Penny Armytage was among those who authorised the move- ment of Williams from isolation.

Got a tip?

investigations@theage.com.au

Landmark Rio deal

From PAGE 1 PAGE 1

substantial economic develop- ment in the Pilbara had delivered virtually no positive benefits for the region’s indig- enous population, with roughly the same number of Aboriginal people arrested in a year as were in mainstream employment. Prepared for the Centre for Aboriginal Economic Policy Research, the report cited high unemployment, poor educa- tional achievement and drug and alcohol abuse as contribut- ing to high arrest rates and a general lack of capacity. The deal commits Rio Tinto to have Aboriginal workers from the Pilbara comprise 14 per cent of its workforce, to support local indigenous business to a similar

level and to provide its entire workforce with cultural aware- ness training. If it fails to meet the job target, Rio Tinto will be required to spend $200,000 a year for each of the groups on education scholarships. ‘‘This is about people in the Pilbara being in charge of this transforming process in their lives,’’ said Janina Gawler, Rio’s chief negotiator in the agree- ment. ‘‘The challenges ahead in the implementation are about building capacity and working with the groups to deliver on the vision that the traditional owners themselves have. ‘‘They want to see benefits for their children’s children and to ensure that their culture and heritage and law are maintained and are strong.’’

WALSH STREET MURDERS October 11, 1988 March 26, 1991 Graeme Jensen shot dead by police
WALSH STREET MURDERS
October 11, 1988
March 26, 1991
Graeme Jensen shot dead by
police in a botched arrest bid in
Narrre Warren.
Supreme Court jury acquits
the four accused men.
May 1, 2002
October 12
Constables
Steven Tynan
and Damian
Eyre ambushed
and murdered
in Walsh Street,
South Yarra.
Victor Peirce shot
dead in Bay Street,
Port Melbourne.
October 1, 2005
Steven Tynan
November 17
Walsh Street
suspect Jedd
Houghton shot
dead by police
in Bendigo.
The Age reports
Peirce’s wife Wendy
admits her husband
organised the police
murders as revenge
for the death of
his friend, Graeme
Jensen.
February 5, 2010
McEvoy arrested in
Damian Eyre
December 30
Victor Peirce formally charged
with two counts of murder over
Walsh Street. Peirce’s half-
brother Trevor Pettingill, Anthony
Farrell and Peter McEvoy are
also charged.
Newcastle and tells
police, ‘‘The sweetest thing
I ever heard was the police
officer’s last words while he
was dying.’’
November 27
Coalition wins government on
April 9, 1989
Walsh Street suspect Gary
Abdallah, shot by police.
He dies 40 days later.
a raft of election promises that
included changing the laws of
double jeopardy, leaving open
the possibility of a retrial.

Reform to reopen Walsh St

the possibility of a retrial. Reform to reopen Walsh St From PAGE 1 Wendy Peirce recanted

From PAGE 1

Wendy Peirce recanted her ori- ginal statements and refused to implicate the four men. She was later convicted of perjury. One of the acquitted men, Peter McEvoy, made an appar- ent confession when arrested in Newcastle last year, declaring:

‘‘The sweetest thing I ever heard was the police officer’s last words while he was dying.’’ A police statement made by a prison officer that McEvoy brag- ged in jail about killing two police. A confession by Wendy Peirce, published in The Age in 2005, that she lied to protect her hus- band. ‘‘It [Walsh Street] was spur

of the moment, we were on the run. Victor was the organiser.’’ A recent police statement believed to be signed by Mrs Peirce confirming her husband’s role in the double murder. Victor Peirce was shot dead in Port Melbourne in 2002. In the original trial, the accused men made unsworn statements from the dock, all telling the jury they were not guilty. Unsworn statements have now been banned and an accused either remains silent or gives sworn testimony, which is open to cross-examination. Laws modifying double jeop- ardy protection have been introduced in Britain, New Zeal- and, Queensland, New South

Wales and South Australia. Mr Clark said he would also ask the Law Reform Commis- sion to examine wrongful con- viction practices to ensure prisoners can also receive justice. ‘‘In principle it should work both ways.’’ He said DNA reviews could provide ‘‘classic examples of new and compelling evidence’’. The Law Institute of Victor- ia’s Michael Holcroft said the institute did not support waiv- ing double jeopardy laws when new evidence emerged. ‘‘There should be finality in prosecu- tions and only in rare cases should there be a retrial. It should not occur because the initial verdict is not popular.’’

Australia entering ‘decades of boom’

New middle class in China, India to boost economy

By PETER MARTIN

ECONOMICS CORRESPONDENT

THE head of the Treasury has relegated the March quarter economic downturn to the past, saying Australia is about to enter a boom that should last decades propelled by high export prices, enhanced mining capacity and

a once-in-a-century global

realignment. The Australian dollar is unlikely to go back to where it was, and manufacturing will shrink in importance to the economy, perhaps even faster than it has been. Speaking to senators as offi- cial statistics were released showing a rebound in coal and iron ore exports and a lift in consumer spending, Martin Parkinson said Treasury had always expected the March quarter downturn reported on Wednesday, although it had been “marginally larger” than it predicted. There was nothing in Wed- nesday’s news to change its view that the March and June quar-

ters would be weak, followed by

“a strong rebound with very

positive growth prospects in 2011-12 and 2012-13”. There had been many “extra-

vagant claims” about the impact of a carbon price. Those claims

did not stand up to scrutiny.

About $380 billion of mining investment was already under way or committed over the next five years. In the coming year

$83 billion would be invested in

enhanced mining capacity, up

EXPORTS BOUNCE BACK $ MILLION COAL 8000 METAL ORES AND MINERALS 7000 6000 5000 4000
EXPORTS BOUNCE BACK
$ MILLION
COAL
8000
METAL ORES AND MINERALS
7000
6000
5000
4000
3000
2000
1000
0 MARCH 2007
MARCH 2011

SOURCE: DEUTSCHE BANK; ABS

from $51 billion in the financial year about to end. It was being driven by “an expectation of continued very strong growth in demand for commodities worldwide — we are talking about China, India and a range of other countries that are rapidly improving the living standards of their people”. “Because those projects are for mines that will exist for 20, 30, 40 even 50 years, they will not be knocked off course by short- term disruptions,” he said. Treasury chief economist David Gruen told the Senate

estimates hearing that while Australia’s record-high com- modity prices might fall back in coming decades “our assump- tion is the next 10 years don’t look like the past 10 years: we think the Australian economy is in the midst of a long-lived change”. The exchange rate would not return to its long-run historical average “any time soon”. The figures showed iron ore

exports rebounding 3.8 per cent in April on top of an 18 per cent recovery in March. Coal exports improved a further 1.4 per cent after rebounding 14 per cent in March. The retail spending figures purported to show a 1.1 per cent bounce back in April, but a large chunk of that was due to an unlikely 21 per cent jump in spending on shoes in Victoria, suggesting the results of the

sample survey should be treated with caution. While mining was part of Australia’s economic transform- ation, Dr Parkinson found the “whole discussion about the importance of mining quite bizarre”. “Mining is 8 per cent of gross domestic product,” he told the hearing. “It’s a very important 8 per cent, but there’s a very important 92 per cent of GDP which is out there which for some reason we have stopped talking about.” All parts of Australia’s econ- omy would be transformed as it retooled itself to sell to an Asian middle class that would become bigger than that of the United States, bringing an “acceleration in the long-term decline in the importance of manufacturing”. Although the Treasury sec- retary would not “draw a direct link between climate change and the things we have seen over this summer,” it was inevit- able that the budget would face greater pressure in the future from climate-related events such as bushfires or flooding.

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