Investigation into the alleged corrupt practices of a headlease coordinator at the NSW department of family and community services (Operation Cygnet)

Findings 1

Allegations are not findings. A commission's finding or opinion of corrupt conduct or misconduct is not a finding that a person is guilty of a criminal offence, and the commissions say so in their reports.

1. serious corrupt conduct

   Finding

   The Commission found that Mr Baynham engaged in serious corrupt conduct by: • between August 2015 and February 2018, improperly exercising his public official functions as a headlease coordinator to obtain $1,673,330 for his company, Sardonyx Project Management, by authorising payments himself, or arranging for the authorisation of payments, to real estate agents/owners for work on properties leased by the NSW Land and Housing Corporation (LAHC), knowing that the real estate agents/ owners would then pay Sardonyx Project Management (chapter 3) • misusing information or material acquired in the course of his official functions in relation to properties at 62 Mason Street, Maroubra, and 1 First Avenue, Maroubra, and, as a consequence, securing work for Sardonyx Project Management at the two properties (chapter 3) • authorising the payment by FACS of two invoices dated 2 February 2017 and 10 March 2017 purportedly from contractor AJ Frankfort for work carried out at 23 Centennial Street, Marrickville, which he knew to be false in order to obtain the invoiced amounts totalling $16,970.80 for the benefit of his company, Sardonyx Project Management (chapter 4).

   Report, page 8, Summary of investigation and outcomes

Recommendations 14

1. Recommendation 1

   That the DCJ reviews the design of its headleasing repairs process so that responsibilities for key activities are clarified and sufficiently segregated.

   Report, page 51

2. Recommendation 2

   That the DCJ develops and enforces a clear and comprehensive set of policies and procedures governing the headleasing process. The policies and procedures should include: assessing and negotiating the scope of repair work recordkeeping requirements sourcing and assessing quotations extending rental payments.

   NSW Department of Family and Community Services - allegations concerning a headlease coordinator (Operation Cygnet), Recommendations for corruption prevention

3. Recommendation 3

   That the DCJ develops and provides guidelines to real estate agents/owners of headlease properties concerning the headleasing process, including information about each party’s responsibilities regarding the repair process.

   Report, page 8

4. Recommendation 4

   That the DCJ provides real estate agents/owners with a copy of its statement of business ethics.

   Report, page 8

5. Recommendation 5

   That the DCJ changes its system for repair work to provide visibility over who is undertaking repair work, at what cost, for what property, and whether the work was performed.

   Report, page 8

6. Recommendation 6

   That the DCJ develops systems to record, monitor and analyse expenditure patterns on its headleased properties.

   Report, page 8

7. Recommendation 7

   That the DCJ develops a set of benchmarks, taking into account regional variations, related to the time and cost of different categories of repair work.

   Report, page 8

8. Recommendation 8

   That the DCJ develops a system to ensure that rental payments cannot continue without senior authorisation after a headleased property is vacated. Any decision to extend rental payments should be subject to ongoing management review at set intervals.

   Report, page 8

9. Recommendation 9

   That the DCJ develops a comprehensive position description for headlease coordinators that reflects the key skills and capabilities required for the role.

   Report, page 8

10. Recommendation 10

    That the DCJ develops and periodically delivers training for all staff (including managers) involved in the headleasing process to equip them with the skills and knowledge required for the role.

    Report, page 8

11. Recommendation 11

    That the DCJ considers proactive measures to help identify conflicts of interest and influence staff behaviour, such as requiring all headleasing staff to regularly complete declarations related to private work and conflicts of interest.

    Report, page 8

12. Recommendation 12

    That the DCJ reviews its policies and procedures relating to secondary employment and private work to ensure they require managers to actively monitor compliance with requirements.

    Report, page 8

13. Recommendation 13

    That the DCJ informs managers of existing employee secondary employment and private work approvals, including when reporting lines change.

    Report, page 8

14. Recommendation 14

    That the DCJ reviews its internal investigations processes to ensure: allegations are investigated by officers with sufficient skills and capabilities matters are not closed inappropriately and are followed up when referred to other areas investigation recommendations are implemented.

    NSW Department of Family and Community Services - allegations concerning a headlease coordinator (Operation Cygnet), Recommendations for corruption prevention

Published responses 3

• Final progress report - Department of Communities and Justice

  Progress report

• 12 month progress report - Department of Communities and Justice

  Progress report

• Plan of Action - Department of Communities and Justice

  Action plan

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