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ABC News
Business
By Frances Bell

Probe into 'soapland' commissioner who rorted $540,000 extended as police head to Japan

A team of WA Police officers will be sent to Japan as part of a revived investigation into former trade commissioner Craig Peacock, who is accused of misusing his position to pocket half a million dollars in taxpayer funds.

A Corruption and Crime Commission (CCC) investigation found Mr Peacock — who represented WA in Tokyo for 17 years — double-dipped on his taxpayer-funded allowance to enrich himself, benefit his friends including two MPs and cover up a drink-driving accident.

The CCC report found that in 2015, Mr Peacock used state resources to arrange for two Legislative Council members — Phillip Edman and Brian Ellis — to have $700 massages at a Japanese bathhouse known as a "soapland".

The alleged rorting of allowances by Mr Peacock included falsifying official documents, misappropriating expenses and tax evasion.

Under a settlement reached with the WA Government, Mr Peacock has been given until next month to repay $540,000.

Police last week said Mr Peacock would not face any criminal charges because the alleged offences happened outside WA, a revelation that left the Police Minister Michelle Roberts "stunned".

WA Police later apologised and said some matters remained under investigation.

Complex case spans multiple countries

Police Commissioner Chris Dawson defended the force's handling of the matter during an interview on ABC Radio Perth.

"We're well aware of the public interest in this — I certainly am — for over half a million dollars of West Australian taxpayers' money," Commissioner Dawson said.

"This is not a matter to be trifled with, nor was it right from the beginning.

"It's just complicated and it's not an easy matter to work our way through."

Commissioner Dawson said an initial assessment of the allegations against Mr Peacock by the Fraud Squad and State Crime Command determined West Australian law did not apply.

But further legal advice from the State Solicitor's office and Corruption and Crime commissioner John McKechnie had caused WA Police to reconsider.

"We're still working our way through it," he said.

"The Corruption and Crime Commissioner has expressly written and said he thinks Section 12 of the Criminal Code does apply."

Commissioner Dawson later said it was too early to determine whether additional advice was required from the Director of Public Prosecutions.

"While we clear up the legalities of it, some of that may not be completed unless and until we travel to Japan," he said.

"Certainly no one, me included, wants to see half a million dollars not be subject to criminal sanction if the offences can be proved."

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