Operation Ord: An investigation into the conduct of officers of the Department of Education and Training, in connection with the use of 'banker schools' and related activities
- Recommendations
- 6
- Report length
- 130 pages
Summary
The report's own summary: 1 Summary of investigation and outcomes, pages 9 to 18
Generated summary: written by an AI model from the report text and checked against the cited pages.
IBAC’s Operation Ord investigated allegations that senior education officials diverted public funds through false invoices and inappropriate expenses.
IBAC found that officials used schools as payment channels for illegitimate invoices and expenses unrelated to departmental work.
IBAC concluded that weaknesses in departmental controls and organisational culture allowed corruption to continue for at least seven years.
IBAC made six recommendations covering departmental reforms, school audits, exclusion of improper suppliers, independent audit and broader public service integrity measures.
In the body's own words
- Finding
Operation Ord revealed that funds intended for the Victorian state school system were corruptly misappropriated by a number of senior Department of Education and Training employees and used to pay for such things as excessive hospitality, travel and other personal expenses, or otherwise purloined for the personal benefit of themselves and their relatives.
- Finding
The investigation found the improper use of schools to pay illegitimate or inappropriate invoices was facilitated by a number of principals and business managers, who are considered to have failed in their financial management duty by not questioning the invoices.
- Conclusion
Operation Ord identified substantial weaknesses in the Department’s systems, controls and culture which created an environment in which the misconduct and corrupt conduct was able to flourish for at least seven years, and probably significantly longer.
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 6
Recommendation 1
The Secretary of the Department to provide IBAC with a detailed progress report by 30 December 2016 on the implementation of its reform program to address the issues identified during Operation Ord and a final report demonstrating the effectiveness of these reforms by 30 September 2017. These reports will be published on IBAC’s website.
Recommendation 2
The Secretary’s reports are to advise on actions to strengthen integrity and corruption prevention across the Department (including schools) in relation to the following issues, inter alia: a. All employees’ understanding of and compliance with public sector values and the code of conduct, and departmental policies and procedures related to conflicts of interest, declarable associations, and gifts and benefits b. Employment policies and practices, including pre-employment vetting of prospective employees and regular revalidation for employees in identified positions, the potential for rotation of employees in identified positions and executive roles, and any steps taken to improve disciplinary and dismissal processes for employees found to have engaged in serious misconduct or corruption c. Financial management, procurement and contracting systems and controls, and associated employee training and compliance measures d. School governance and financial management arrangements, including the proposed new model to deliver ‘shared services’ to schools (i.e. any new approach to program coordinator schools) and relevant policies, procedures and other controls e. Audit and risk management programs to provide assurance in areas of identified risk f. Mechanisms to encourage and support employees to speak up and report suspected misconduct or corruption, and to ensure appropriate assessment, escalation and investigation of such matters g. Leadership and management programs to ensure executives are accountable for modelling integrity and public sector values, and to set the right tone at the top.
Recommendation 3
The Department to undertake a review to identify and audit any schools in addition to those identified by Operation Ord that may have been used inappropriately as banker schools to expend funds on behalf of either regional or central office.
Recommendation 4
The Department to take appropriate steps to exclude people and entities whose behaviour has been found to be improper or corrupt from obtaining work with the Department (including schools) in future.
Recommendation 5
The Victorian Auditor-General’s Office to consider undertaking an audit of the Department to assess whether the issues identified in Operation Ord, specifically in relation to false payments made by schools, have been effectively addressed by the Department.
Recommendation 6
The Secretary of the Department of Premier and Cabinet to provide a report to IBAC by 30 December 2016 on implementation of the VSB’s corruption prevention and integrity action plan. This report will be published on IBAC’s website.
Published responses
Responses to this report have not been checked.
Notes on this record
- Tabled: Legislative Assembly 2016-05-03; Legislative Council 2016-05-03.
Coverage
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