Investigation into the conduct of an Illawarra Shoalhaven Local Area Health District employee (Operation Tivoli)

Summary

Findings, opinions and statements 3

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. corrupt conduct

   Finding

   The Commission finds that Mr Ribicic engaged in corrupt conduct when seeking public sector employment in two ways:

   Report, page 8, Summary of investigation and outcomes

2. Section 74A(2) statement

   Prosecution statement

   The Commission is of the opinion that, in relation to each of the six employment applications made by Mr Ribicic to public authorities that are discussed in chapter 2, consideration should be given to obtaining the advice of the Director of Public Prosecutions (DPP) with respect to the prosecution of Mr Ribicic for: • an offence against s 192E(1)(b) of the Crimes Act 1900 (NSW) (the Crimes Act) of fraud in that by deception (the submission of false qualifications and, in some cases, false references) he dishonestly obtained a financial advantage (salaried employment), and/or • an offence against s 192G of the Crimes Act in that he dishonestly published a statement (that he held particular academic qualifications) that was false in a material particular (he did not hold those qualifications) with the intention of obtaining a financial advantage (salaried employment).

   Report, page 9, Summary of investigation and outcomes

3. Section 74A(2) statement

   Prosecution statement

   The Commission is not of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution or the taking of any other action mentioned in s 74A (2) in relation to any other person.

   Report, page 9, Summary of investigation and outcomes

Recommendations 9

1. Recommendation 1

   That NSW Health revises the Policy Directive: Recruitment and Selection of Staff to the NSW Health Service to ensure: • relevant qualifications are verified directly with the issuing institution where possible • an adequately resourced human resources unit conducts qualification checks • all qualifications that materially influence the selection of the preferred candidate are verified • a guide is prepared and included in the recruitment procedure for those undertaking qualification checks • referees are to be contacted through their organisation’s switchboard in the first instance and, where practicable, not through mobile numbers • reference checks include questions designed to confirm the identity of the referee and their knowledge of the operational area in which the applicant claims they worked.

   nine corruption prevention recommendations, page 1

2. Recommendation 2

   That NSW Health conducts a risk assessment of due diligence practices in recruitment, which includes: • whether to use certificate verification software where it is not practical to contact the issuing institution • a consideration of the risk that a professional body will fail to detect false qualifications • whether its recruitment procedures should be further enhanced.

   nine corruption prevention recommendations, page 2

3. Recommendation 3

   That NSW Health undertakes periodic audits of recruitment due diligence.

   nine corruption prevention recommendations, page 2

4. Recommendation 4

   That NSW Health revises the Policy Directive: Conflicts of interest and gifts and benefits policy and the Managing Conflicts of Interests Procedures to ensure: • the definition of a conflict of interest (COI) aligns with the Commission’s definition in its publication Managing conflicts of interests in the NSW public sector • a section on conflict of duties is included, referencing the Commission’s publication Managing conflicts of duties in the NSW public sector • all COIs are declared on a standard form (see recommendation 5) and entered onto a COI register, including those declared for specific processes such as tendering and recruitment • suspected breaches of requirements, including non-disclosures, are reported to specialist units or in accordance with the public interest disclosure procedures, ensuring reports bypass conflicted personnel • reports or complaints from external entities relating to COIs are referred to a person experienced and qualified to deal with them independent of the subject area • the governance unit reviews COI management plans before they are finalised • examples of COIs are relevant to users and highlight applicable COI scenarios.

   nine corruption prevention recommendations, page 2

5. Recommendation 5

   That NSW Health adopts a standard COI declaration form that: • includes space for sufficient information from the declarant and relevant undertakings. The undertakings should include: • confirmation that the declaration is accurate and complete • acknowledgement that the relevant policies have been read and understood • a commitment to placing public duties over personal interests • agreement to comply with the management plan • agreement to make updated declarations when circumstances change • requires the manager to fill in a brief risk assessment of the COI, record any key points from discussions with the declarant, outline the recommended action plan and specify how they intend to monitor the plan • includes space for the governance area to note any relevant further information.

   nine corruption prevention recommendations, page 3

6. Recommendation 6

   That NSW Health revises the Policy Directive: NSW Health Procurement (Goods and Services) and associated procedures to ensure: • declared or suspected COIs and associations are monitored. Among other things: • declarations made during a procurement process should be included in a COI register • a COI arising in a procurement process should be considered when managing the contract • procurement documents prompt the disclosure of conflicts of interest • order-splitting is the subject of a dedicated section, which clearly proscribes order-splitting • the policy and procedures cover and explain segregation of duties. Tasks are to be allocated to different people for the specific purpose of preventing or detecting corruption, fraud or error • suspected breaches of requirements – including order-splitting, the misclassification of procurements and breaches of segregation principles – are reported to specialist units or via established public interest disclosure procedures • due diligence requirements are clearly stated, including for assessing supplier capabilities, and for classifications of significant procurements and other relevant high-risk activities • data analytics are performed to detect anomalies, risks and patterns in ordering, invoicing and payments that may indicate non-compliance with procurement policies.

   nine corruption prevention recommendations, page 3

7. Recommendation 7

   That NSW Health reviews its procurement process to ensure: • the process restricts vendor master file additions and changes to individuals with the delegation to make these entries and are authorised by an appropriate person who has undertaken due diligence checks • the e-procurement system identifies and requires appropriate additional information for entries that carry elevated fraud and corruption risks.

   nine corruption prevention recommendations, page 4

8. Recommendation 8

   When NSW Health implements the revised procurement process, it incorporates internal controls that will mitigate corruption and other procurement risks identified through a comprehensive risk assessment process.

   nine corruption prevention recommendations, page 4

9. Recommendation 9

   That NSW Health prepares guidelines to assist in the management of consultancy agreements. The guidelines should cover key issues such as assessing and managing major risks of the assignment; planning; avoiding scope creep; reliability and use of information; and ownership of workpapers.

   nine corruption prevention recommendations, page 4

Published responses

No published response was found.

Official documents 2

• Investigation into the conduct of an Illawarra Shoalhaven Local Area Health District employee (Operation Tivoli)

  Report · 68 pages

  Document details

  Role

  Report

• nine corruption prevention recommendations

  Recommendations

  Document details

  Role

  Recommendations

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