Barely two weeks into his job, Western Australia’s new Corruption and Crime Commissioner has deleted a contentious section of a controversial report written by his predecessor.

A report published by then-CCC Commissioner John McKechnie in 2019 alleged WA’s former Japanese trade commissioner, Craig Peacock, had acted corruptly by double-dipping on cost of living allowance claims and payments, costing taxpayers more than $500,000. 

The report found that in 2015, he had used state resources to pay for two Liberal MPs to have $700 massages at a Japanese bathhouse known as a “soapland”.

Craig Peacock in a suit jacket and tie, staring into the camera.

Craig Peacock was accused of misusing his former position as WA’s commissioner in Japan at a cost to taxpayers of $500,000.  (Supplied: WA government)

It included discussion of whether Mr Peacock should have paid tax in Japan or Australia, or both countries.

Mr McKechnie wrote in that section that Mr Peacock had been “possibly evading tax in both Japan and Australia” but that the issue was “outside the Commission’s jurisdiction” and he therefore “expresses no opinion, and makes no finding”.

‘Misleading’ report

Mr Peacock disputed that conclusion and wrote to Parliamentary Inspector Matthew Zilko SC, who oversees the CCC and who tabled his own report in late 2023 to “correct the record”.

“The way in which the report was framed would … have left the casual reader with the misleading impression that its subject had indeed evaded his tax obligations,” Mr Zilko wrote.

A shadow on a backdrop for the WA Corruption and Crime Commission.

The WA Corruption and Crime Commission’s new chief Michael Corboy amended the report soon after taking the reins. (ABC News: Keane Bourke)

“Given that tax evasion is a criminal offence, that statement was tantamount to suggesting that Mr Peacock had possibly committed a crime.”

He concluded that because Mr Peacock held an official passport and an official visa, he did not need to pay tax in Japan and therefore had not evaded tax.

Mr Zilko wrote that he had suggested the relevant sections of the original report be amended by the CCC, but said that was not taken up by Commissioner McKechnie.

Report altered

In its response to Mr Zilko’s report, the CCC argued that section was focused on Mr Peacock’s credibility and honesty, and that it “did not make extensive enquiries” to determine the issue of tax evasion.

Mr Zilko said CCC speculating on such a serious matter was not a “responsible exercise of its power.”

Now, some five-and-a-half years after it was first published, those sections have been removed from the official version of the report.

CCC Commissioner John McKechnie speaks in a studio.

Former WA Corruption and Crime Commission Commissioner John McKechnie published a controversial report on WA’s Japanese trade commissioner. (ABC News: Kenith Png)

“Having reviewed the reports, I have determined that the Commission’s report should be amended and corrected,” Commissioner Michael Corboy SC wrote in a letter to Parliament.

In a statement, a CCC spokesperson said Commissioner Corboy decided to remove the paragraphs after reviewing both the original report and the Parliamentary Inspector’s report.

“The decision does not in any way alter the Commission’s opinion that Mr Peacock engaged in serious misconduct,” they said.

Mr Corboy became the CCC Commissioner just two weeks ago, having acted in the role since Mr McKechnie retired at the end of June.

Loading