Navy contracts probe: Defence department accused of burying investigation by keeping it in military system

The Defence department is being accused of trying to bury details of a high-level investigation into a senior naval figure, and their handling of lucrative defence contracts, by keeping the case within the military justice system.

Over the weekend The Nightly revealed details of a secretive court martial process underway in Western Australia involving a recently retired officer which has sent shockwaves across the defence sector.

The Nightly understands the accused, who will soon be subjected to a court martial on eight separate but unspecified charges, left the Australian Defence Force in the past few years.

Western Australia’s Premier Roger Cook was questioned on Monday about whether the revelations could undermine public confidence in expensive military projects underway in his state such as preparation work for AUKUS.

“Obviously, it’s concerning. We want our public finance arrangements to be fully accountable and subject to fairness and probity. But this is a matter for the Commonwealth,” he told reporters.

Former senior Defence official Michael Shoebridge believes the entire process should now be handled by a regular civil court, rather than kept inside the military justice system.

“The alleged offences are probably also offences under civilian law, so the better approach is a standard — open and public — prosecution in a civil court,” he tells the Nightly. “Instead, this just looks like the Defence leadership and Ministers trying to keep this away from the public.”

Another Defence industry figure familiar with details of the case backed the assessment, saying they believed the military establishment was trying to “bury” the case from public view.

Former Senator and Royal Australian Navy submariner Rex Patrick has also questioned why the accused officer’s identity was still being suppressed given the nature of the allegations.

“Why is a regular citizen’s first hearing held in open court, but a senior official/politician accused of serious wrongdoing in public office so often protected by ‘privacy’. Two-tiered justice, it seems. Why not one standard for all accused?” he wrote online.

The Defence Department declined to answer several detailed questions submitted by The Nightly last week, citing obligations under the Privacy Act as the reason for why the name and military rank of the accused had so far been suppressed by the ADF.

Sources with knowledge of the matter have told The Nightly arrangements are being made to enable former Defence Department Secretary Greg Moriarty, who now serves as Australian ambassador to the United States, to give evidence from Washington.

“This really is a big deal, and a lot of effort is being made to ensure this serious case is handled thoroughly and by the book,” one defence source tells The Nightly, speaking on the condition of anonymity given the sensitive nature of the matter.

“The accused is receiving comprehensive legal support, including a defence team consisting of up to six people so this process is going to be quite an expensive one,” the serving ADF figure says.

A trial period of up to six weeks has been set down for the court martial which is scheduled to begin at a Canberra defence facility in September and be heard before the ADF’s Chief Judge Advocate, Major General Michael Cowen KC.

In late June, a five-day pre-trial hearing for the matter was held at Western Australia’s HMAS Stirling naval base, which saw legal representatives fly to Perth for proceedings that were also overseen by Major General Cowen.

Figures familiar with the allegations claim that due to the seniority of the accused ADF member it was initially difficult to find senior officers to take part in the court martial given who were not conflicted.

Those figures have also told The Nightly the complex case will examine interactions between the former Capability and Sustainment Group inside Defence and several large military companies who completed sustainment at Henderson shipyard.

Earlier this year The Nightly became aware of representatives from defence industry as well as departmental officials being contacted by military investigators ahead of a formal court martial being launched.

The Nightly understands the activity under investigation occurred during the previous Coalition government and before the Albanese government took power in 2022, but it is unclear why the matter is being handled by a military disciplinary process rather than a civilian court.

Defence Minister Richard Marles has also been approached for comment on his knowledge of the court martial and if he supported the ADF’s handling of the matter, but his office has not yet responded.