[2017] AATA 835
General information, not legal advice.
Administrative Appeals Tribunal of Australia
2017-06-09
Original judgment source is linked above.
The decision of the Acting Information Commissioner on 15 October 2015 is varied so as to decide that:
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FREEDOM OF INFORMATION - request for access to documents relating to investigations of providers funded under employment services program - documents contain material identifying employment services providers - whether disclosure would unreasonably affect employment services providers adversely in respect of their lawful business, commercial or financial affairs - whether access would, on balance, be contrary to the public interest - decision under review varied.
Bell and Secretary, Department of Health [2015] AATA 494
Besser and Department of Employment [2015] AICmr 67
Besser and Department of Families, Housing, Community Services and Indigenous Affairs [2013] AICmr 65
Dreyfus and Secretary, Attorney General's Department [2015] AATA 962
Francis and Department of Defence [2012] AATA 838; (2012) 59 AAR 35
Leigh and Australian Federal Police (2016) 153 ALD 546
Prinn and Department of Defence (2016) 152 ALD 162
Rovere and Secretary, Department of Education and Training [2015] AATA 462
Secretary, Department of Prime Minister and Cabinet and Wood [2015] AATA 945
Smith and Australian Federal Police [2016] AATA 531
Office of the Australian Information Commissioner, Guidelines issued by the Australian Information Commissioner under s 93A of the Freedom of Information Act 1982 (December 2016)
All reports or memos etc to the Minister and/or the Secretary or other senior executives of [the Department] which discuss the issue of abuse, rorting, false claiming for fees etc, by whatever description such problems are given in the documents, by employment services providers operating under the Job Services Australia initiative, compiled and/or delivered in the past 12 months.
On 17 January 2012, Mr Besser applied to the Department for access to documents relating to audits of a specified organisation. That request, and the documents to which it relates, are not in dispute in this review. On 4 June 2012, Mr Besser applied to the Department for access to:
All Provider Risk Alert Reports compiled by [the Department] with respect to Employment Services Providers for the period from 1 January 2011 to 1 January 2012.
On 22 June 2012, Mr Besser narrowed the scope of that request.
Employment services are designed to assist unemployed people in receipt of government benefits to secure jobs. The [Department] funds JFHP to provide these services on a fee-for-service and outcome basis. This funding is provided pursuant to a formal contract between the [Department] and JFHP. The unemployed persons use the service for free and employers also use the service to locate suitable staff and fill positions for free.
The Department funds many other employment services providers (including the providers identified in the documents) and those providers compete with each other to provide services, and (from time to time) to contract with the Department to provide further services.
... an internal tool used by the Department to monitor emerging risks and progress against resolving potentially significant contract management issues and is an integral part of the Department's risk management framework for employment services.
The Department also says, and I accept, that its external fraud investigations reports are:
... used for similar purposes but are limited to potential fraud. They contain information concerning providers who are under investigation for possible breaches of compliance with contractual arrangements and/or under investigation for possible breaches of the criminal law.
... triggered in a number of ways, including through internal monitoring by the Department, tip offs from current or previous staff members of a provider (generally made anonymously) and complaints made by job seekers (including those still being assisted by a provider). In some cases, the reports also detail information and issues identified through an employment service provider's own internal quality assurance or audit check.
Critically, many of the reports contain unsubstantiated allegations. They are a "point in time" document, and report on the current status of the investigation at the time of the report, not the final outcomes of the investigations. These are reported on as they eventuate, including where the provider was found not to be at any fault. ... [I]n many cases, the allegations were dismissed as unsubstantiated.
Having examined the documents, I accept this characterisation of the documents by the Department. I note that there are some references in the documents to a successful criminal prosecution arising from allegations made to the Department. But, the name of the convicted person has not been removed from the redacted copy of the documents provided to Mr Besser. There are also references in the documents to various allegations being referred to the Commonwealth Director of Public Prosecutions, and of charges having been laid against various people. But, none of the documents substantiates any of those allegations of wrongdoing.
Are the documents conditionally exempt under the business information exemption (s 47G)?
47G Public interest conditional exemptions - business
(1) A document is conditionally exempt if its disclosure under this Act would disclose information concerning a person in respect of his or her business or professional affairs or concerning the business, commercial or financial affairs of an organisation or undertaking, in a case in which the disclosure of the information:
(a) would, or could reasonably be expected to, unreasonably affect that person adversely in respect of his or her lawful business or professional affairs or that organisation or undertaking in respect of its lawful business, commercial or financial affairs; ...
This decision rejects the contention that publicly releasing documents identifying organisations investigated by the Department in response to allegations of fraud would unreasonably affect those organisations.[12]
In doing so, the Commissioner cited a decision of the Tribunal: Bell and Secretary, Department of Health. In Bell, the Tribunal considered whether s 47G applied to departmental correspondence with a company about a review of that company's management and administration of a government health program.[13] The Tribunal noted that the public interest in disclosure arises when deciding whether a document is conditionally exempt under s 47G, and not just when - having decided that the document is conditionally exempt - applying s 11A.[14] This is because deciding that disclosure would (or could reasonably be expected to) have an unreasonable adverse effect involves considering whether that effect would be reasonable "given whatever might be the public interest in disclosure".[15] The Tribunal applied that approach in Bell:
When I have regard to the information that is contained in [two of the relevant documents], the historic nature of that information in the history of [the company] its relations with the Department, ... the public interest in knowing whether public money was accounted for at the appropriate time in the manner required and the public interest in ensuring that public programmes are properly administered, I conclude that any adverse effect that would, or that might reasonably be expected, to follow disclosure of the documents would not be an unreasonable adverse effect on [the company] or on the ongoing management and administration of [the health program]. Therefore, I am not satisfied that [the documents] are conditionally exempt under s 47G.[16]
I note the Department refers to the case of Besser and Department of Families, Housing, Community Services and Indigenous Affairs[17] where the former Freedom of Information Commissioner found that disclosing the details of organisations investigated for fraud would be unreasonable for the purposes of s 47G. However, the documents in that case did not detail the investigations and it was unclear whether the potential breaches of the law extended beyond an individual employee.[18] In the present case, the investigations spanned 37 service providers and, according to Mr Besser, the Government recovered more than $41,000,000.00 it had paid in false claims. It is apparent that the documents in this case do detail the investigations undertaken and impropriety beyond that of an individual employee.[19]
I made the IC review decision in Besser and Department of Families, Housing, Community Services and Indigenous Affairs. The Commissioner was correct to note that the documents in that case indicated only that two of the organisations were under investigation and did not indicate the extent, if any, of the involvement of a third organisation.[20] But, importantly, in that case it was also not clear whether the allegations had been substantiated, or whether the third organisation was even alleged to have been involved in any criminal activity.[21]
Would access to the documents be contrary to the public interest (s 11A(5))?
(3) Factors favouring access to the document in the public interest include whether access to the document would do any of the following:
(a) promote the objects of this Act (including all the matters set out in sections 3 and 3A);
(b) inform debate on a matter of public importance;
(c) promote effective oversight of public expenditure;
(d) allow a person to access his or her own personal information.
... it is important in the present case that details of the allegations have already been disclosed, and all that has been withheld are the identities of the individual providers. Disclosure of the exempt material will not significantly advance the public interest, as the nature of the allegations and how they were investigated has already been disclosed ...
I agree, and I note that I have taken this factor into consideration in deciding about the application of s 47G. The Department also says:
... as noted in the decision under review there has been widespread public reporting of issues relating to the operation of the employment services market.[33]
Balancing the factors favouring and against access
I agree with Mr Besser that a multi-billion dollar government program is deserving of considerable scrutiny, particularly where there is a substantial risk of fraud and where the proper accountability and governance of external providers is essential to minimising that risk.[40]
I agree that there is a significant public interest in the scrutiny of the Department's administration of the program. But, for the reasons I have given above,[41] the public interest in that scrutiny is met by the disclosure of the documents, whether or not the providers are identified.
I certify that the preceding 43 (forty-three) paragraphs are a true copy of the reasons for the decision herein of Senior Member Popple
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[1] At the time that the respondent made his FOI requests, the Department was known as the Department of Education, Employment and Workplace Relations.
[2] Section 4(1) of the FOI Act provides that "exempt matter means matter the inclusion of which in a document causes the document to be an exempt document".
[3] See also the definitions of "conditionally exempt" and "exempt document" in s 4(1).
[6] Besser and Department of Employment [2015] AICmr 67 at [1].
[8] Presumably this is because the Department had not decided to give access to that business information (see s 27(4)) and - in due course - decided not to give access to that business information.
[9] The Department also contacted other employment services providers, but the identities of those other providers have been disclosed, with their consent, and documents containing details of those providers are not in dispute in this review: see Besser and Department of Employment [2015] AICmr 67 at [43].
[10] The "jobactive" program replaced the Job Services Australia program on 1 July 2015.
[12] Besser and Department of Employment [2015] AICmr 67 at [2].
[13] Bell and Secretary, Department of Health [2015] AATA 494 at [58]-[59] per Forgie DP.
[14] See also Office of the Australian Information Commissioner, Guidelines issued by the Australian Information Commissioner under s 93A of the Freedom of Information Act 1982 (December 2016) at [6.187]: "A decision maker must balance the public and private interest factors to decide whether disclosure is unreasonable for the purposes of s 47G(1)(a); but this does not amount to the public interest test of s 11A(5) which follows later in the decision process".
[15] Bell and Secretary, Department of Health [2015] AATA 494 at [27] per Forgie DP.
[16] Bell and Secretary, Department of Health [2015] AATA 494 at [68] per Forgie DP, cited in Besser and Department of Employment [2015] AICmr 67 at [42] per Commissioner Pilgrim. See also FOI Guidelines at [6.189].
[18] Besser and Department of Families, Housing, Community Services and Indigenous Affairs [2013] AICmr 65 at [42].
[19] Besser and Department of Employment [2015] AICmr 67 at [46], one footnote omitted.
[20] Besser and Department of Families, Housing, Community Services and Indigenous Affairs [2013] AICmr 65 at [42].
[21] Besser and Department of Families, Housing, Community Services and Indigenous Affairs [2013] AICmr 65 at [43].
[23] Bell and Secretary, Department of Health [2015] AATA 494 at [68] per Forgie DP: see [22] above.
[26] Leigh and Australian Federal Police (2016) 153 ALD 546 at 560 [48].
[27] Leigh and Australian Federal Police (2016) 153 ALD 546 at 560 [48].
[30] See Dreyfus and Secretary, Attorney-General's Department [2015] AATA 962 at [33] per Bennett J; Francis and Department of Defence [2012] AATA 838; (2012) 59 AAR 35 at 39-40 [18] per Jarvis DP; Rovere and Secretary, Department of Education and Training [2015] AATA 462 at [12]. But see also Secretary, Department of Prime Minister and Cabinet and Wood [2015] AATA 945 at [23]-[27] and Prinn and Department of Defence (2016) 152 ALD 162 at 175-178 [46]-[57] in which Forgie DP takes a different view. Respectfully, I disagree with her view, for the reasons I gave in Smith and Australian Federal Police [2016] AATA 531 at [25] note 15.
[33] See Besser and Department of Employment [2015] AICmr 67at [22].
[34] FOI Guidelines at [6.19], paragraph (c).
[35] FOI Guidelines at [6.22], paragraph (b).
[38] FOI Guidelines at [6.8]. The objects of the FOI Act are set out in ss 3 and 3A.
[40] Besser and Department of Employment [2015] AICmr 67 at [53].
[42] In the decision under review, the Commissioner explained that the Department was required to provide Mr Besser with copies of the documents he requested, modified (under s 22 of the FOI Act) by the deletion of exempt material and material irrelevant to Mr Besser's requests: [2015] AICmr 67 at [3]. However, as I understand the Commissioner's decision, its effect was that the documents that Mr Besser requested contained irrelevant material but no exempt material: [2015] AICmr 67 at [1]. I have decided that the 19 documents in issue in this review are exempt: Mr Besser should be given copies of those 19 documents, modified by the deletion of the exempt material. In varying the Commissioner's decision, to achieve this result, I have expressly not varied that part of his decision requiring the redaction of exempt and irrelevant material, even though I do not think that his decision identified any exempt material.