Pubdate: Thu, 03 Jun 2004 Source: New Zealand Herald (New Zealand) Copyright: 2004 New Zealand Herald Contact: http://www.nzherald.co.nz/ Details: http://www.mapinc.org/media/300 Author: Greg Ansley GANGLAND POLICE INFORMER LEAK STARTS AUSTRALIAN CORRUPTION PROBE The state of Victoria is bracing itself for an investigation with the potential to expose corruption in its police force and reveal links to organised crime and an underworld war that has claimed 26 lives. Under intense pressure, a reluctant state Labor Government has appointed Queens Counsel Tony Fitzgerald to inquire into the leaking of a confidential police report detailing the activities of Melbourne gangland informer Terrence Hodson, 56. Hodson and his wife, Christine, both linked to leading gangland figures, were murdered in their suburban home last month, allegedly soon after the leaked document began circulating in the Melbourne underworld. Fitzgerald's brief is limited to the leaked document at present, but Premier Steve Bracks' resistance to a wider inquiry yesterday appeared to be crumbling in the face of growing demands for a royal commission into corruption. Pressure has grown since the appointment of Fitzgerald, the man whose 238-day inquiry in the late 1980s brought down the previously unshakeable Queensland Government of Sir Joh Bjelke-Petersen. Fitzgerald's royal commission led to the jailing of prominent Queenslanders, including police commissioner Terence Lewis, who was also stripped of his knighthood. Fitzgerald's report, ghost-written by journalist and author Margaret Simons, ushered in a reforming Labor administration and led to the creation of the corruption-busting Criminal Justice Commission and other measures. Now charging A$5000 ($5620) a day in private practice, Fitzgerald was appointed to the Victorian inquiry on the initiative of the State Ombudsman, George Brouwer, who on Tuesday gained new corruption-busting powers conferred because of the continuing saga of gangland killings and police corruption. These powers, including the ability to compel witnesses to give even self-incriminating evidence and the right of search and seizure, will be available to Fitzgerald. The State Government has rejected calls for a wider inquiry or a royal commission, saying such an investigation would endanger court cases already being heard. But yesterday, Bracks conceded that the Fitzgerald inquiry might lead to much broader issues. "If other matters are revealed and discovered in the process of his work, that is good, that is excellent," he said. "That's exactly why we want someone of his calibre, his expertise and his track record." Fitzgerald has been told to investigate the leaking to gangland figures of a report that spelled out the activities of Hodson as a police informer, and which was this week seen - but not retained - by the Australian Broadcasting Corporation. The killings of Hodson and his wife exposed direct links to corrupt police, including two officers involved in his informing and who allegedly joined Hodson to steal large amounts of drugs the day before a drug raid was to take place. Last year, Victorian police set up two separate taskforces to investigate the gangland slayings that have eliminated some of the key figures of the Melbourne underworld, and to probe police corruption after the exposure of dirty cops and the disbanding of the state drug force. But there have been increasing indications that the two inquiries are covering much of the same ground, sparking calls for a royal commission with wide powers of investigation. - --- MAP posted-by: Jo-D