Buying trust: Corruption risks in public sector procurement

Summary

In the body's own words

1. Conclusion

   These warning signs do not necessarily constitute corruption per se.

   Report, page 70

2. Conclusion

   However, they should prompt public officers to make further enquiries and report suspicious conduct.

   Report, page 70

Findings, opinions and statements

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.

No findings are reproduced in this record. This does not establish that the report contains none.

Recommendations 18

1. Recommendation 1

   Public authorities conduct regular procurement audits based on the risk profile of their procurement activities. High risk procurements may include those where the number of suppliers able to tender is limited, extensions or variations are utilised, an incumbent supplier has been reengaged, and those conducted with urgency or in emergencies. Procurements under $55,000 should be regularly audited for evidence of tender splitting.

   Report, page 10

2. Recommendation 2

   Public authorities prevent non-Aboriginal suppliers taking unfair advantage of schemes intended to assist Aboriginal suppliers to win public sector contracts by verifying the status of suppliers claiming Aboriginal identity.

   Report, page 10

3. Recommendation 3

   Where relevant, public authorities conduct random audits of contracts that are required to have a mandated proportion of labour force hours to be performed by nominated groups.1 Non-compliance needs to be reported to the Office of the Industry Advocate.

   Report, page 10

4. Recommendation 4

   All public officers involved in procurement, including those with delegation authority, complete training on probity in procurement. This should include training on corruption risks in procurement, conflicts of interests, gifts, benefits and hospitality, the handling of confidential information and public officers’ reporting obligations.

   Report, page 10

5. Recommendation 5

   Public authorities ensure that if a participant in a procurement discloses a conflict of interests, a management plan is devised, documented, actioned and monitored.

   Report, page 10

6. Recommendation 6

   Public authorities consider control measures to address post separation conflicts of interests for public sector employees in high risk roles, including exiting procedures, information access restrictions and monitoring, or the use of restraint clauses where reasonable.

   Report, page 10

7. Recommendation 7

   The Commissioner for Public Sector Employment ensure that the Gifts and Benefits Guideline is consistent with that provided by Procurement Services SA, which recommends that public officers in high risk roles do not accept gifts, benefits or hospitality.

   Report, page 11

8. Recommendation 8

   Public authorities ensure that internal policies include advice regarding the handling and recording of gifts, benefits and hospitality offered by suppliers in high risk functions including procurement.

   Report, page 11

9. Recommendation 9

   Public authorities ensure they are complying with Premier and Cabinet Circular PC035 – Proactive disclosure of regularly requested information, including publication of information on agencies’ websites.

   Report, page 11

10. Recommendation 10

    Procurement Services SA continue its development and implementation of a Code of Conduct for suppliers.

    Report, page 11

11. Recommendation 11

    Public authorities conduct regular audits of staff permissions, access and use of confidential procurement information to identify patterns of unusual activity or instances of misuse.

    Report, page 11

12. Recommendation 12

    Procurement Services SA consider the need for guidance on the proper management and protection of intellectual property during procurement processes.

    Report, page 11

13. Recommendation 13

    Entities that control panels and multi-use supplier lists vet new suppliers, regularly review existing suppliers on a panel or list, and remove suppliers if they no longer fit relevant criteria or conditions.

    Report, page 11

14. Recommendation 14

    Public authorities consider and limit public officers’ discretion over procurements and financial decision making, and ensure appropriate segregations and separations are in place.

    Report, page 12

15. Recommendation 15

    Public authorities conduct regular audits of procurement record keeping, including ensuring all procurement decision making is documented with reasons, and relevant written and verbal communication with suppliers is recorded.

    Report, page 12

16. Recommendation 16

    Procurement Services SA consider expanding its capacity to assist agencies that require additional support to undertake procurements, especially where that assistance would help safeguard procurements from impropriety.

    Report, page 12

17. Recommendation 17

    Public authorities ensure they have emergency situation procurement frameworks in place and published on their websites.

    Report, page 12

18. Recommendation 18

    Public authorities provide suppliers with information on internal reporting policies and procedures and suppliers’ reporting obligations as public officers. Public authorities ensure that contractors provide corresponding induction material to their subcontractors.

    Report, page 12

Published responses

No published response was found.

Coverage

This publisher

• Office for Public Integrity: publishes only its annual reports (excluded); no OPI report or statement records.
• Since October 2021 the Commission does not make findings of corrupt conduct; most records have no findings.
• Government and agency responses are recorded only where the Commission's page links them or the report reproduces them; implementation status is not published by the Commission as structured data.
• Scanned reports without a text layer are not read (no OCR); their recommendations stay not_extracted.
• Recommendations are extracted only from numbered 'Recommendation N' lists; reports that set out recommendations in prose, tables or unnumbered lists keep recommendations_status not_extracted.
• Findings are extracted only from investigation reports that state them in the Commissioner's own words (Oakden 2018, Gillman 2015); public statements are not read for findings.