To recap: A Queensland doctor from India was accused (And later cleared) of terrorism, based on flimsy evidence, and the AFP bungled the investigation. They arrested and held Haneef with nought but the flimsiest evidence, and supported measures to revoke his visa when a judge - citing an 'exceptionally weak' case against him - set him free on bail.
Basically, the AFP charged Haneef with "'recklessly' supporting a terrorism organisation" (certainly a vague charge) simply because he gave his still-valid SIM card to a relative when he left the UK for Australia. This relative later was implicated in an airport attack in the UK.
The police held Haneef for the maximum allowed time - two days - and then requested one extension after another, eventually holding him for two weeks, in the hopes they could find more evidence. None was found.
The Haneef case was a complete clusterfuck, and a solid black eye for Australian justice. I've talked more about this before: