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Victorian state opposition unveils election promise for 'strong' IBAC and Ombudsman

Victorian Opposition Leader Matthew Guy says the Liberal National Party is "focused on rebuilding our system of integrity and honesty in government".  (AAP: James Ross)

Victoria's state opposition has unveiled a pledge to boost funding for the state's ombudsman and anti-corruption watchdog, to rebuild a "system of integrity and honesty in government".

Under the opposition plan, the Independent Broad-based Anti-Corruption Commission (IBAC) would regain broader powers for public hearings.

Opposition Leader Matthew Guy said under the pledge, the Coalition would pump an extra $10 million into IBAC's budget per year and increase the Victorian Ombudsman's funding by $2 million per year.

"We want to give respect back to those integrity watchdogs — that's what Victorians expect us to do."

"The Liberal National Party is focused on rebuilding our system of integrity and honesty in government and the Andrews government that's focused on denigrating them and defunding them." 

Requests for more funding for the independent bodies are a perennial issue in Victoria, with both IBAC and the Ombudsman regularly saying they need more to operate strongly.

In last year's budget, treasurer Tim Pallas allocated $54 million for IBAC — an increase on previous years — and $20.2 million for the Ombudsman over the 2021-22 financial year.

Mr Pallas will hand down his next budget on Tuesday.

Manager of opposition business Louise Staley said the Liberal and National policy would also involve amendments to the Parliamentary Committees Act to allow the Joint Integrity and Oversight Committee to have budgetary oversight.

"Never again will they be subject to the whim of the Labor government or a future government," she said.

"It will mean they will always be funded properly, and will always be subject to proper parliamentary scrutiny."

Mr Guy said he would reverse a move from the Andrews government that meant most IBAC hearings are now held in private.

He said this was done "to weaken the IBAC's oversight" and "to protect this government".

Government already under scrutiny 

Labor won the 2018 state election in a landslide, and polling suggests the Coalition is unlikely to win in the November 2022 vote.

But Mr Guy's election pledge could shift the focus to matters of integrity at a time when the government is already under scrutiny.

The Age newspaper recently reported IBAC was questioning Premier Daniel Andrews over issues including branch-stacking and misuse of public resources.

Quotes from the draft report, verified by the ABC, refer to an unethical culture with respect to factional activity "constantly arising" during its investigations.

Branch-stacking issues within the party came to light because of the 2014 so-called "red shirts" saga, which prompted a joint investigation between IBAC and the Victorian ombudsman.

The investigation, known as Operation Watts, held public hearings as well as a number of private interviews.

As a result of the investigation, the Ombudsman in 2018 found Victorian Labor misused $388,000 of public money for campaigning. Labor has since repaid the funds.

On Thursday, Mr Andrews refused to confirm whether he had been questioned and said it would be "grossly inappropriate" for him to comment on a report that had not yet been released.

However, he did confirm that a draft report arising from Operation Watts had been sent to people involved in the investigation.

Daniel Andrews has reportedly been questioned by IBAC over branch-stacking in Labor. (AAP: James Ross)

Mr Guy accused the Andrews government of corruption.

"The Broad-Based Anti-Corruption Commission, the auditor general, the ombudsman all reported instances of — whether it's impropriety or frankly downright — corrupt behaviour," he said.

"That is what we're seeing with this government."

A Commonwealth integrity commission is a federal election issue. ABC Vote Compass figures show nearly half of Australians think corruption is "very much a problem" in the country, and more than a third believe it is "somewhat a problem".

Government labels announcement 'hollow'

Government minister Ben Carroll defended the government's record on funding and took a swipe at the federal Liberal party's failure to deliver a promised national integrity body.

"Under our government, we are putting record investment into the Independent Broad-based Anti-Corruption Commission, they've got important work to do when it comes to integrity, and I would hope that, you know, federally, we have a similar body as soon as possible," he said.

Mr Carroll said it was "a bit hard to stomach the Opposition Leader calling for changes at IBAC".

He referenced the now-infamous "Lobster with a mobster" dinner that saw Mr Guy refer himself to IBAC.

"Their announcement really is a hollow announcement, when they've been in office previously they've never funded IBAC to the tune it needs. Under our investments, IBAC has had record investment," Mr Carroll said.

He said the legislation governing IBAC would "continue to be looked at" for potential improvements.

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