4.1 Proposed grounds 1 and 3
25 In closing submissions, the applicant characterised the first and third proposed grounds of appeal as based on legal unreasonableness. The precise factual basis for these contentions is opaque.
26 In the first proposed ground of appeal, the applicant contends that the Tribunal was unreasonable in finding that the evidence of the Applicant was false, without having a logical and probative basis for that finding, and the FCCA erred in finding the Tribunal had considered the evidence in a probative manner. The particulars appended to this ground advance the propositions: that the Tribunal found that reasons for omitting the forced prostitution claim from the application form were not credible; that the Tribunal did not accept that the applicant was advised to mention this claim only at the hearing when the application form includes harassment and beatings from the loan shark; that the Tribunal found that the Applicant had no valid reason for not including the very serious claim of prostitution and therefore the introduction of this claim at this stage of the proceeding was in order to strengthen her claims for protections; that the Tribunal stated that the Royal Malaysian Police Force is generally considered a professional and effective force that does take action if loan sharks and gangs resort to violence or extortion to recover borrowed money; that the Tribunal found that the Applicant was not credible as she did not attempt to report such a serious incident to the police. Finally, the applicant asserts that the Tribunal failed to give adequate weight her evidence that she was harassed and beaten by the loan shark which is a legitimate fear of significant harm if she returns back to Malaysia under section 36(2A) of the Act. As such, applicant submits the Tribunal did not address the applicant's evidence in a logical and probative manner.
27 The third proposed ground of appeal is phrased in terms of the Tribunal applying the "wrong test" in assessing whether the applicant has a genuine fear of harm from a loan shark in Malaysia, and the FCCA erred in accepting the Tribunal's decision. However, at the hearing the applicant indicated that it was in effect also based on legal unreasonableness. The applicant contends that Tribunal so erred in assessing whether the applicant has a genuine fear of harm from the loan shark in Malaysia, and that the FCCA erred in accepting the Tribunal's decision. In the particulars appended to this ground, the applicant points to the Tribunal finding that it was not satisfied that the applicant is indebted to a loan shark, or that a loan shark harmed her, and found that she had fabricated her claims in order to be granted a visa to remain in Australia. The country information referred to in the protection visa decision record mentioned multiple media reports which found that the practice of illegal money lending is widespread in Malaysia, and that police operations targeting Ah Long (colloquial term for loan sharking) are not uncommon. The Daily Express report dated 22 April 2014 found that one of the most significant barriers to prosecution of Ah Long syndicate members is the lack of cooperation from the public, especially those who have fallen victims to the syndicate. The applicant submits that the Tribunal failed to consider that loan sharks are still operating in Malaysia and the police are still unable to assist persons such as the applicant, as is evident from the country information.
28 Despite the wide-ranging criticisms identified in the particulars, the central tenet of the submissions advanced by the applicant in support of these grounds is that the Tribunal erred in reaching its conclusions as to the credit of the applicant.
29 Findings of credit are generally matters for the administrative decision maker, although this does not mean that they are beyond scrutiny on judicial review. They may be challenged as amounting to jurisdictional error where they fall within the concept of legal unreasonableness (in the sense that no reasonable decision-maker could have come to that view), or amount to reaching a finding without a logical, rational or probative basis, or amount to a failure to give a proper, genuine and realistic consideration to the issues and material before the decision-maker; see BZD17 v Minister for Immigration and Border Protection [2018] FCAFC 94; 161 ALD 441 at [32] - [35], [37] (Perram, Perry and O'Callaghan JJ).
30 As the Full Court summarised in DAO16 v Minister for Immigration and Border Protection [2018] FCAFC 2; 258 FCR 175 at [30] (Kenny, Kerr and Perry JJ):
...
(3) By way of example, in SZRKT at [78], Robertson J considered that jurisdictional error may be established where a finding on credit on an objectively minor matter of fact constitutes the basis on which the decision-maker rejects the entirety of an applicant's evidence and claims. Furthermore, as Flick J explained in SZVAP v Minister for Immigration and Border Protection [2015] FCA 1089; (2015) 233 FCR 451 (SZVAP) at [22] (in a passage on which the appellant particularly relied), "[u]nwarranted assumptions by a Tribunal as to matters relevant to the formation of a view on the credibility of a corroborative witness may cause the Tribunal to disbelieve and disregard that evidence and may constitute a failure duly to consider the question raised by the material put before it: WAGO of 2002 v Minister for Immigration and Multicultural and Indigenous Affairs (2002) 194 ALR 674 at [54]." Equally jurisdictional error may be established by "a process of reasoning which damns a man's credibility by reference, materially, to a false factual premise concerning a critical document": SZLGP v Minister for Immigration and Citizenship [2009] FCA 1470; (2009) 181 FCR 113 at [37].
(4) Findings or reasoning along the way to reaching a conclusion by the decision-maker that are illogical or irrational may establish jurisdictional error (SZMDS at [132] (Crennan and Bell JJ)). In this regard, with respect to the significance of an illogical or irrational finding as to credit to the administrative decision necessary to establish jurisdictional error, Wigney J explained in Minister for Immigration and Border Protection v SZUXN [2016] FCA 516 (in a passage approved in CQG15 at [60]) that:
56 An irrational or illogical finding, or irrational or illogical reasoning leading to a finding, by the Tribunal that the review applicant was not a credible or honest witness may in some circumstances lead to a finding of jurisdictional error. That would particularly be the case where the adverse credibility finding was critical to the Tribunal's decision that it was not satisfied that the applicant met the criteria for the grant of a visa. Whilst it is frequently said that findings as to credit are entirely matters for the Tribunal, such findings do not shield the Tribunal's decision-making processes from scrutiny…
(citations omitted)
(5) A high degree of caution must, however, be exercised before finding that adverse findings as to credit expose jurisdictional error in order to ensure that the Court does not embark impermissibly upon merits review: SZMDS at [96]; SZVAP at [14]-[15]. As such, to establish jurisdictional error based on illogical or irrational findings of fact or reasoning, "extreme" illogicality must be demonstrated "measured against the standard that it is not enough for the question of fact to be one on which reasonable minds may come to different conclusions" (SZRKT at [148]; see also SZMDS at [135] and CQG15 at [60]). Thus, "[e]ven emphatic disagreement with the Tribunal's reasoning would not be sufficient to make out illogicality": CQG15 at [61].
31 I do not consider that the decision of the Tribunal reflects the errors for which the applicant contends. The factual premise for the applicant's claims is that she feared harm if returned to Malaysia as a result of her interactions with a loan shark. The Tribunal weighed the evidence in this regard and gave four reasons for rejecting that claim as not credible, as set out at [13] - [16] above. It concluded that it was not satisfied that the applicant is indebted to a loan shark or that a loan shark harmed her as she claimed.
32 The applicant in oral submissions emphasised three aspects of the reasons of the Tribunal in relation to grounds 1 and 3. The first is that the Tribunal took an unrealistically "commercial mind" to the promissory note in concluding that it was implausible that the document would require monthly loan repayments of 15,000 RM, when the total debt was also 15,000 RM, meaning that the first monthly payment would amount to the total debt. The second is that the Tribunal considered the applicant embellished her claims of mistreatment by a loan shark by introducing a claim at hearing that the loan shark forced her into prostitution, a claim which was not included in her original application form. The third is that the Tribunal erred in considering the effectiveness of the Royal Malaysian Police Force in general terms, rather than at the "street level". These are matters that the Tribunal, in weighing the credit of the applicant's claims, was entitled to take into account.
33 Furthermore, in relation to the first point, in setting out its reasons for rejecting the credibility of the claims advanced, the Tribunal not only relied on the implausibility of the payment amount, but also found that the promissory note was inexplicably written in English, that it was unsigned, and that it was not produced until the time of the hearing before the Tribunal, even though the applicant allegedly had it with her when she came to Australia. The Tribunal found that the failure to report the loan shark to the police was problematic because the applicant gave different and contradictory reasons for not going to the police.
34 In relation to the second point, although the applicant submits that the core basis of a claim that has been embellished may not necessarily be false, the Tribunal was clearly entitled to take into account the lateness of the applicant's claim of forced prostitution in assessing her credibility.
35 In relation to the third point, the applicant cites SZAIX v Minister for Immigration & Multicultural & Indigenous Affairs [2006] FCA 3; 150 FCR 448 at [18] and [64] (Madgwick J), and relies on various paragraphs of the delegate's decision under the heading "Refugee Criterion Assessment", which was part of the material before the Tribunal and the FCCA. The applicant submits that the Tribunal failed to consider that loan sharks are still operating in Malaysia at the street level, as evidenced by this material, and that this resulted in a legal error in applying the wrong test, or was legally unreasonable in the sense that it caused a failure in the logic of the Tribunal's reasoning.
36 In SZAIX, the Court found that in determining whether the applicant qualified for a protection visa, the Tribunal's failure to consider the adequacy of the state protection in the specific local area she would live if returned to her country of origin, rather than in the country generally, resulted in jurisdictional error: see [28] - [64]. In that case, the Tribunal had accepted the applicant's claims of persecution in her country of origin, and credit was not in issue. That case turned on factual findings as to the level of protection local police could provide the Chinese applicant from her anti-Chinese persecutors if she returned to her former area of residence in Indonesia, and whether she was able to relocate to another part of Indonesia.
37 However, similar issues do not arise in the present case, because the Tribunal did not accept the applicant was indebted to, or harmed by, a loan shark, and found that her claims were fabricated. Insofar as any test is espoused in SZAIX, it does not apply here. Nor can it be said that the Tribunal's finding regarding the Royal Malaysian Police Force set out in [26] above was so unreasonable that no reasonable decision-maker could have made it, based on the country information it referred to and the material identified by the applicant.
38 In my view, the reasoning of the Tribunal was not so lacking in a rational or probative basis so as to amount to being legally unreasonable.