Grounds 1, 4(a) and 4(d): Misconstruction and misapplication of s 501(6)(h); unreasonableness of the inference as to risk
26 As indicated, the Minister refused the applicant's application for a protection visa on the basis that the Minister was not satisfied that the applicant passes the "character test" as defined in s 501(6)(h) of the Migration Act. The relevant provisions are the following:
501 Refusal or cancellation of visa on character grounds
Decision of Minister or delegate - natural justice applies
(1) The Minister may refuse to grant a visa to a person if the person does not satisfy the Minister that the person passes the character test.
Note: Character test is defined by subsection (6).
…
(6) For the purposes of this section, a person does not pass the character test if:
…
(h) an Interpol notice in relation to the person, from which it is reasonable to infer that the person would present a risk to the Australian community or a segment of that community, is in force.
Otherwise, the person passes the character test.
27 The applicant draws attention to the use of the word "would" in paragraph (h) and submits that more than a mere suspicion is required. The word chosen by the legislature is not, for example, "might", i.e. "from which it is reasonable to infer that the person might present a risk". The applicant submits that there must be some evidence of a crime having been committed, or at least particulars of the offence which combined with the applicant's circumstances raise the necessary inference, i.e. that it is reasonable to infer from the Interpol notice that the applicant would present a risk to the Australian community or a segment of that community.
28 To date, there is no authority in this Court or the High Court that has considered the proper construction of s 501(6)(h). The Minister submits that "would" is used merely to reflect that the inquiry is with regard to something that might happen in the future and that it does not say anything about the probability of the risk occurring, its juxtaposition with "might" being a false dichotomy.
29 The Minister refers to the Explanatory Memorandum (EM) to the Migration Amendment (Character and General Visa Cancellation) Bill 2014 (Cth) that led to the enactment of s 501(6)(h) which (at [55]) states the following:
55. The purpose of new paragraphs 501(6)(g) and (h) of the Migration Act is to acknowledge that a person who is the subject of an adverse ASIO assessment or Interpol notice is likely to represent a threat to the security of the Australian community or a segment of that community. These amendments ensure that a person objectively does not pass the character test if either of these provisions apply to them, without the need to further assess them against the subjective criteria in subsection 501(6) of the Migration Act.
30 From this, the Minister submits that the provision envisages that he may legitimately infer from the fact that it is alleged that the person has behaved in the manner described in an Interpol notice that they would present a threat to the Australian community (or a segment thereof). That is to say, the fact of the Interpol notice and the allegations in it is sufficient to draw the inference that the person would present the risk that is referred to.
31 The Minister submits that no evidence of the crime is required before the requisite inference can be drawn and that it would be an unusual construction of s 501(6)(h) if such evidence was required, as the Minister would otherwise be expected to have a sophisticated level of understanding of foreign law. The Minister further submits that such a construction of the provision raises many questions including, from where would the Minister seek out such evidence of the alleged crime and from which provision(s) in the Migration Act can such a duty to seek out such evidence be derived?
32 Paragraph (h) is to be contrasted with some of the other provisions that were introduced at the same time. For example, paragraph (f) provides that if the person has, in Australia or a foreign country, being charged with or indicted for one or more of the crimes of genocide, a crime against humanity, a war crime, a crime involving torture or slavery or a crime that is otherwise of serious international concern, the person fails the character test.
33 In relation to that provision, i.e. paragraph (f), the EM (at [52]) states that the purpose of the provision "is to ensure that where a person has been charged with or indicted for one of these serious offences, the person objectively does not pass the character test". That is to say the mere charge or indictment for such a serious crime is sufficient to lead to failure of the test and therefore cancellation or refusal of the visa even though no conviction has been entered.
34 Another example is paragraph (g) which provides that if the person has been assessed by ASIO to be directly or indirectly a risk to security within the meaning of s 4 of the Australian Security Intelligence Organisation Act 1979 (Cth) then the person fails the character test. That is to say, the fact of the ASIO assessment determines the outcome without any residual assessment or inferential reasoning to a conclusion required by the Minister. The definition of security that is referred to encompasses the protection of, and of the people of, the Commonwealth and the several States and Territories of Australia from, as one would expect, a variety of serious threats including espionage, sabotage, politically motivated violence and so on, whether directed from or committed within, Australia or not.
35 There are two important distinctions between these provisions and paragraph (h). First, in respect of both paragraphs (f) and (g), the mere fact of the charge or indictment, in the one case, and the ASIO assessment, in the other, leads to the failure of the character test - there is no assessment to be made by the Minister. Secondly, the reason for that in paragraph (f) is the seriousness of the crimes. It may be inferred that the seriousness of the specified threats and the fact of an assessment having been undertaken and a conclusion reached by ASIO are the reasons for that outcome with reference to paragraph (g).
36 Paragraph (h) is different. First, as identified, an assessment has to be made by the Minister - the Minister has to "reasonably infer … from the Interpol notice" that "the person would present a risk to the Australian community".
37 Secondly, not all Interpol notices convey that a crime has even been committed, let alone by the person who is subject to the notice, and the crime as in this case may not be as serious as the crimes referred to in paragraph (f) and the threats referred to in paragraph (g).
38 In that regard, the officer of the Department who on 25 January 2019 recommended that the applicant is a person in respect of whom Australia has non-refoulement obligations, stated the following in his report:
Interpol notices (of several colours for various purposes) are international requests for cooperation or alerts allowing police in member countries to share critical law-enforcement information. Notices are published by Interpol's General Secretariat at the request of authorised entities.
In the case of IRNs, the persons concerned are wanted by national jurisdictions for prosecution or to serve a sentence based on an arrest warrant or court decision. IRNs are used to assist national police forces in identifying and locating these persons with a view to their arrest and extradition or similar lawful action.
While some Interpol member countries consider an IRN to be a valid request for provisional arrest for possible extradition, in Australia persons cannot be arrested on the basis of an IRN alone. Rather, the requesting country must seek the person's extradition in relation to the offences alleged against the person and an extradition arrest warrant would need to be issued by an Australian magistrate. Extradition requests are managed by the Attorney-General's Department (AGD).
39 Also, in the Departmental submission to the Minister, the Minister was advised of the following:
In Australia, Red Notices do not provide lawful grounds for domestic policing agencies to arrest the subject individual. An Interpol Red Notice is not an international arrest warrant, and Interpol authorities cannot compel the law enforcement authorities in any country to arrest someone who is the subject of a Red Notice. Each member country decides what legal value it gives to a Red Notice and the authority of the law enforcement officers to make arrests.
40 It is thus apparent that there is a variety of colours of Interpol notices for different purposes, and that an IRN may be issued because the person the subject of the IRN is wanted for the purposes of being prosecuted, as in this case, or because they have already been convicted and are wanted for the purpose of serving their sentence. So, even leaving aside the other colours of notices that deal with other matters including missing persons and identifying bodies - notices that could not give rise to a reasonable inference of risk, an IRN may indicate that a crime has been proven against the person, but it may only indicate that a crime is alleged against the person. Clearly, each could lead to very different conclusions with regard to whether the person has actually committed a crime and whether they might commit another crime in Australia such as to present a risk to the Australian community or a segment thereof.
41 The Interpol notice system is essentially a coordinated system of sharing information between national police services - see the discussion in FUD18 v Minister for Home Affairs [2019] FCA 1858 at [40]-[51] per Thawley J. There is nothing to say that because an allegation is recorded in an Interpol notice it is any more reliable, or any more likely to be the truth, than an allegation made by the national police service that generated the notice.
42 In enacting s 501(6)(h), Parliament must be taken to have known that there are different types of Interpol notices and that they might convey different information that may or may not be relevant to, or that may have different degrees of cogency in, an assessment of whether the person who is the subject of the notice would present a risk to the Australian community or a segment of that community.
43 It follows that the mere fact of an Interpol notice being in force cannot be sufficient, on its own, to lead to the inference reasonably being drawn. There must be something in the notice from which the relevant inference can reasonably be drawn. In the case of a conviction in another country of a serious crime, that on its own may be sufficient. But in the case of charges or an indictment against someone, that may not be sufficient. Each case will turn on its own facts and circumstances.
44 The Minister submits that an Interpol notice is not just any document containing unsupported allegations - it is official documentation requesting the location and arrest of someone for the purposes of prosecution. Whilst that is true, the fact of the allegations being officially made says nothing on its own about whether the allegations are credible. Aside from any other considerations, their credibility may depend on who makes them or the circumstances in which they are made. For example, someone facing political persecution in a foreign country might well be the subject of trumped up allegations of criminal conduct in an IRN as an element of that persecution.
45 As to how credible the allegations must be before the relevant inference can reasonably be drawn, account must also be taken of the meaning of the word "would" in paragraph (h). "Would" is used here as a modal auxiliary verb to the verb "present". "Might" could have been used. That the choice of "would" rather than "might" has some significance is suggested by the use of "might" in many sections of the Migration Act where "would" could otherwise have been used, e.g. ss 24, 116(1)(e), 129(1)(e), 134B(b), 140XG(1), 268BK(1), 268CL(2), 370(2), 371(3), 432(2), 433(3), 487C(1) and 503(3).
46 Particularly significant is s 116(1)(e) which includes this wording: "the Minister may cancel a visa if he or she is satisfied that … the presence of its holder in Australia is or may be, or would or might be, a risk to … the health, safety or good order of the Australian community or a segment of the Australian community." As with s 501(6)(h) read with s 501(1), this employs the language of the Minister being satisfied and the notion of risk to the Australian community. However, rather than requiring that the risk "would" be present, it covers the bases of "may be, or would or might be".
47 Similarly, s 134B(b) provides that the Minister must cancel a visa held by a person if an assessment by ASIO contains advice that ASIO suspects that the person "might be" a risk to security.
48 These contrasts drive one to the conclusion that "would" in s 501(6)(h) has the effect of requiring a higher probability than if "might" had been used. That is to say, from the Interpol notice it must be reasonable to infer that the person would present, not might present, a risk to the Australian community or a segment of that community. The use of "would" conveys that it is expected that the risk will materialise. That should be taken to mean more probable than not. Here, "risk" is used as a noun meaning "a thing regarded as a threat or source of danger": OED Online (Oxford University Press, March 2020). It is not an expression of possibility, as in "to present a risk of danger".
49 The result is that the information derived from the Interpol notice that is relied on by the Minister to conclude that a person does not pass the character test as expressed in s 501(6)(h) must be such as to allow the reasonable inference to be drawn that, if the person was granted a visa or if their visa was not cancelled, they probably would present a risk to the Australian community or a segment of that community. If the inference cannot reasonably be drawn, then the person passes the character test (see the words at the end of sub-s (6)).
50 In the present case, the Minister's conclusion that it was reasonable to infer that the applicant would present a risk to the Australian community was based on the following (with reference to paragraphs [20]-[21] of the Minister's reasons, quoted at [16]) above): (1) large amounts of money being involved in the allegations against the applicant and the seriousness of the alleged criminal conduct on the basis that fraud involving substantial quantities of funds is indicative of a level of sophistication in the criminal conduct; (2) a perpetrator of that type of sophisticated fraud has the capacity and may continue to have the motivation to repeat the conduct such that it cannot be said there is no risk of reoffending; (3) the applicant conceded that "he did take the money as a loan" which he did not repay as a consequence of which "it is therefore not without some substance that [the applicant] would be under suspicion of these charges" ; and (4) if found guilty he would be subject to a life sentence in the PRC (presumably indicating the seriousness of the crime).
51 The last sentence of paragraph [21] of the Minister's reasons - i.e. that it "is therefore not without some substance that [the applicant] should be under suspicion of these charges" - is to be understood to mean that because of the preceding matters, there is some substance to the charges.
52 On the basis of those factors, the Minister reached the conclusion expressed in paragraph [22] (also quoted at [16] above). That is to say, the Minister concluded on balance "that there is a serious and substantial issue to be addressed and, taken together with the possibility of reoffending, [the Minister inferred that the applicant] poses a risk to a segment of the Australian community."
53 In my view, the Minister's reasoning does not satisfy the statutory requirement. My reasons for that conclusion follow.
54 From what is stated in the IRN, it cannot reasonably be inferred that the applicant would present a risk to the Australian community, or a segment of that community. The IRN records no more than unproved allegations against the applicant and that he is wanted in the PRC for trial. There is nothing in the notice from which it can be inferred that there is a reasonable case to be made against the applicant, or even any evidence at all in support of the charges recorded in the notice.
55 Moreover, it is illogical and unreasonable to conclude on the basis of unsubstantiated allegations against someone that there is a risk of the person reoffending; until there is a reasonable basis to infer that the person offended in the first instance, there cannot be any reasonable basis to infer that they might reoffend.
56 In this instance, the Minister did not say anything about, for example, being able to rely on criminal allegations from the PRC as having credibility because of his knowledge or information provided to him of the working, credibility or reputation of the PRC criminal justice system. To the contrary, the Departmental officer's recommendation relies on country information to make a number of damning findings about that system.
57 That country information includes a United Kingdom Home Office Operational Guidance Note dated 1 January 2014 which in turn cites the United States Congressional-Executive Commission on China (CECC) 2013 Annual Report as stating that there is no presumption of innocence in the PRC and the criminal justice system is biased towards a presumption of guilt. It states further that according to the Supreme People's Court, in 2011 the combined conviction rate for first and second instance criminal trials was 99.9%. The CECC notes that most defendants in the PRC face significant bias in the criminal justice system and do not have adequate legal assistance. It states that one recent study found that approximately 95% of the criminal cases surveyed relied on defendant confessions and that the vast majority of defence efforts failed to challenge confessions. The country information also states that torture remains widespread in the PRC. The inescapable inference from the Departmental officer's recommendation is that torture is widely used in the PRC to obtain false confessions.
58 The Departmental officer's recommendation which sets out, and accepts, that damning information about the PRC criminal justice system does not appear to have been directly before the Minister - it is not one of the documents annexed to the Departmental submission which he signed indicating his agreement to the refusal of the applicant's visa. However, the submission includes the statement that the applicant is a person in respect of whom Australia has been found to owe protection obligations. That is a reference to the Departmental officer's recommendation. Thus, the author of the submission to the Minister had access to the recommendation, and certainly the recommendation and the country information documents referenced in it were in the Departmental files relating to the matter of the applicant's application for a protection visa which is the very matter in which the Minister's decision was made.
59 In Minister for Aboriginal Affairs v Peko-Wallsend [1986] HCA 40; 162 CLR 24, Gibbs CJ, in dealing with a situation where the relevant Minister had made a decision requiring his satisfaction with regard to a particular state of affairs on the basis of a report presented to him by officials, stated (at 30-31) that the Minister cannot be expected to personally read all the relevant papers that relate to the matter. It would not be unreasonable for the Minister to rely on a summary of the relevant facts furnished by the officers of their Department. No complaint could be made if the departmental officers, in this summary, omitted to mention a fact which was insignificant or insubstantial. But if the Minister relies entirely on a departmental summary which fails to bring to their attention a material fact which they are bound to consider, and which cannot be dismissed as insignificant or insubstantial, the consequence will be that they will have failed to take that material fact into account and will not have formed their satisfaction in accordance with the law.
60 Gibbs CJ went on to hold (at 31) that "the material in the possession of the Department must clearly be treated as being in the possession of the Minister." Although that case dealt with mandatory relevant considerations, which is not pertinent to the present consideration of the material in the possession of the Department that is relevant to the weight to be attached to what is stated in the Interpol notice, the finding with regard to material in the possession of the Department necessarily being treated as being in the possession of the Minister is equally applicable to the present case.
61 In the same case, Mason J stated (at 45) that it would be a strange result to hold that the Minister is entitled to ignore material of which he has actual or constructive knowledge and which may have a direct bearing on the justice of making the decision, and to proceed instead on the basis of material that may be incomplete, inaccurate or misleading.
62 Also in Peko-Wallsend, Brennan J (at 66) stated that a Minister may retain his power to make a decision while relying on his Department to draw his attention to the salient facts. But if his Department fails to do so, and the validity of the Minister's decision depends upon his having had regard to the salient facts, his ignorance of the facts does not protect the decision. The Parliament can be taken to intend that the Minister will retain control of the process of decision-making while being assisted to make the decision by departmental analysis, evaluation and précis of the material relevant to that decision.
63 Also pertinent to the point is DHS17 v Assistant Minister for Immigration and Border Protection [2018] FCAFC 209 at [51]-[55] per Kenny, Moshinsky and Bromwich JJ, and the authorities there cited. It was held that where the Minister reaches a conclusion on the basis of Departmental advice given to him when the Department had in its possession in relation to the same matter information which shows that advice to be doubtful, then the Minister's acceptance of the advice cannot be protected by the fact that he did not personally have that information.
64 In the present case, it was accepted by the Minister that he could rely on the allegations in the IRN from the PRC as having some substance, whereas the Department had in its possession in relation to the same matter information which showed that advice to be doubtful. Given the information in the knowledge of the Department in the context of the same matter under consideration by the Minister, and thus constructively within the knowledge of the Minister, allegations as to criminal conduct emanating from the PRC police authorities could not reasonably be taken at face value. No reasonable inference could accordingly be drawn by the Minister as to the risk presented by the applicant simply from the IRN itself.
65 Insofar as matters outside the IRN are concerned, the Minister acknowledged that the allegations have not been proven, that the applicant maintained his innocence of the crime of which he is accused and that he had a clear police certificate from Australia. The only matter that the Minister apparently regarded as inculpatory is the fact that the applicant accepted that he had taken "the money as a loan" which he had not repaid (see [21] of the Minister's reasons quoted at [16] above). The applicant's acceptance of an unpaid debt was part of his explanation of his innocence and is at best neutral insofar as commission of the offence is concerned. The applicant did not accept that the money that is the subject of the charges in the IRN is the same money as the loan.
66 The applicant points to the fact that the companies that are identified in the IRN, as the borrowers and the lender, are different from the companies that the applicant refers to in his exculpatory statement in which he admits that there is a loan that he did not repay. On that basis the applicant submits that the acknowledgement of an unpaid loan cannot serve to support any of the allegations in the IRN.
67 The IRN identifies the lending company (A Co) and three borrowing companies (B Co, C Co and D Co) that were allegedly "used" by the applicant in collusion with three other people. However, the applicant's explanation of his financial circumstances says that the lending company was a bank (E Bank Co), although another bank (F Bank Co) is also mentioned. The applicant states that he was the borrower in order to fund the operations of two companies (G Co and H Co) which are different from any of the borrowing companies named in the IRN. The one company (H Co) would appear to possibly be the same as the company referred to in the IRN as the "secured party" as they have very similar although not identical names. (I have anonymised the companies in order to protect the applicant's identify.)
68 It is also to be noted that the Chinese court documents that were included in the documents furnished to the Minister, including a judgment against the applicant, reflect the applicant as borrower and the lender as yet another company (I Co).
69 The short point is that there is no apparent tie-up between the allegations in the IRN, on the one hand, and the applicant's explanation and what is revealed by the court documents provided by him, on the other. That serves to reinforce the point that the applicant's admission of an unpaid debt cannot logically serve to support the allegations in the IRN or the Minister's conclusion that there is "some substance" to the applicant being "under suspicion of these charges".
70 In the circumstances, the Minister could not reasonably have inferred from the IRN that the applicant would present a risk to the Australian community or a segment of that community, as required by s 501(6)(h). Ground 1 of the judicial review should accordingly be upheld.
71 To the same effect, it was legally unreasonable, in the sense discussed at [90]-[95] below, to conclude that the charges against the applicant are not without substance on the basis of the applicant having accepted that he had not repaid a loan when he was obliged to do so, in particular when there is no apparent connection between the events underlying the fraud charges and the loan in question (other than the applicant's explanation that the charges are trumped up at the instigation of someone involved in the circumstances of his failure to repay the loan). The conclusion lacks "an evident and intelligible justification"; there is "no logical connection between the evidence and the inferences or conclusions drawn". Ground 4(a) should accordingly succeed.
72 Also, it is similarly legally unreasonable to reach a conclusion as to the risk presented by the applicant on the basis of the possibility of him reoffending when there is not reasonable basis to draw the inference that he offended to begin with. Ground 4(d) should accordingly succeed.
73 On those bases I conclude that the Minister's decision is infected by jurisdictional error and falls to be set aside.
74 I am aware of the decision in Applicant M117 of 2007 v Minister for Immigration and Citizenship [2008] FCA 1838 where it was held by Kenny J (at [58]) that untested allegations of criminal conduct in an Interpol Red Notice emanating from China were sufficient basis for the Minister to cancel a visa on character grounds. There are, however, at least two material distinctions between that case and this. First, that case concerned a decision under s 501(3) where the Minister was required to form a "reasonable suspicion" that the applicant did not pass the character test. That is a far lower threshold than what I have concluded is required under s 501(1) read with s 501(6)(h). Secondly, the Minister also acted on other information that she had received relating to the applicant's character (see the judgment at [19]).