Independent senator David Pocock has called for a review of the national anti-corruption watchdog to be fast-tracked after its boss was found to have engaged in misconduct over the illegal robodebt scheme.

The inspector of the National Anti-Corruption Commission reviewed the watchdog’s decision not to pursue the six people named in the robodebt royal commission report, finding commissioner Paul Brereton didn’t recuse himself after a conflict of interest.

The discredited and illegal welfare debt scheme implemented by the former Coalition government between 2016 and 2019 recovered more than $750 million from almost 400,000 people.

But many welfare recipients were falsely accused of owing the government money, and robodebt was linked to several suicides.

On Wednesday, NACC inspector Gail Furness recommended a review of the decision not to investigate the robodebt referrals.

She said there had been more than 1200 complaints relating to the decision not to investigate, which broadly expressed “profound disappointment”.

BREAKING – the Inspector of the NACC has made the most damning findings against NACC Commissioner Brereton finding a comprehensive failure by home to deal with a clear conflict of interest in the Robodebt referral. https://t.co/iSTqVbSaEl

— David Shoebridge (@DavidShoebridge) October 30, 2024

Furness said Brereton declared he knew, and had a close association with, one of the people but failed to appoint a delegate and remove himself from the decision-making process.

As part of the review, a retired judge opined the decision “was affected by apprehended bias”.

It means a reasonable person may think the decision wasn’t made in an impartial manner.

No suggestions of actual bias and no findings of intentional wrongdoing or other impropriety were made.

“In light of the conflict of interest, the NACC commissioner should have not only designated a delegate but removed himself from the related decision-making processes and limited his exposure to the relevant factual information,” the inspector’s report states.

“This was not done.”

Brereton involved himself in the decision in a “comprehensive” manner, the inspector found.

This was an error of judgment and the commissioner had engaged in officer misconduct, which was defined as not being unlawful but arising from a mistake of law or fact, the inspector said.

After the release of the report on Wednesday, Pocock said he was concerned the NACC, which was intended to rebuild public trust in politics and public institutions, had not delivered on its mandate.

“The NACC was established after crossbench pressure over many years and we pushed hard for it to have more transparency, including by holding public hearings,” he said.

“The inspector’s findings – and what they say about the commissioner’s judgment – are concerning, as is the way the NACC has operated to date.

“I believe that the independent statutory review of the NACC should be brought forward so we can better examine these issues and look to refine the NACC’s operations if required.”

Greens senator David Shoebridge said the “damning” findings put the commissioner’s future in question.

“Given these findings by the inspector, it is hard to see how the NACC can survive and retain its credibility without immediate and unambiguous accountability,” he said.

The Australian Council of Social Service also welcomed Furness’s report.

“The robodebt scandal harmed hundreds of thousands of people and their families, yet no minister has ever been penalised,” chief executive Cassandra Goldie said.

“This is a disgrace and sends a message that governments can get away with breaking the law and causing substantial harm to its citizens.”

She said there remained deep public concern that there had been no justice for those harmed by the scheme.

“There is clear public value in ensuring that justice is carried out for those responsible for robodebt, including proper investigation into the corruption issues raised,” Goldie said.

“It is shameful that those who are responsible for robodebt and who ignored its harm have been subject to very little accountability, if any.

“Robodebt victims and their families deserve so much better.”

Attorney-General Mark Dreyfus thanked Furness and said the government would continue to support the NACC “as it undertakes its important work to deter, detect and prevent corrupt conduct”.

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-with AAP