Special report on Operation Exmouth

Summary

The report's own summary: Overview, pages 5 to 6

In the body's own words

1. Finding

   IBAC’s investigation found that Mr Petrone played a critical role in one family (with whom he has a familial relationship) obtaining a large financial advantage through their subcontracting businesses.

   IBAC_-_Operation_Exmouth_Special_Report_-_web_version_b70CBVLP, page 6

2. Conclusion

   After due consideration of the available evidence, IBAC considered it was insufficient to substantiate allegations which might amount to criminal behaviour on the part of Mr Petrone.

   IBAC_-_Operation_Exmouth_Special_Report_-_web_version_b70CBVLP, page 20

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 3

1. Recommendation 1

   Places Victoria review its policies and procedures to prevent the identified corruption vulnerabilities and to ensure: • appropriate due diligence processes in relation to establishing the bonafides of new and existing contractors • induction and training for new contractors and subcontractors, to ensure they are aware of their obligations including those relating to public sector values, codes of conduct and all relevant policies • recruitment processes are robust, including appropriate security vetting processes for employees prior to recruitment and during the course of employment (for example, consideration could be given to requiring prospective employees to complete a statutory declaration in relation to prior work history, including whether they have ever been the subject of an investigation for a criminal or disciplinary matter) • systemic vulnerabilities identified through this investigation are addressed, including: oo corruption risks associated with the exercise of procurement functions, such as persons ‘signing off’ numerous invoices just below their delegation threshold to the same contractors (contract splitting) oo contract management systems that ensure contract terms are enforced, progress through the contract is monitored, and decisions or variations are documented to avoid circumstances such as the use of colluding contractors and subcontractors oo information security including the use of external platforms for document storage and management, and personal emails to transact official business • there is a robust conflict of interest framework in place, and that employees and contractors fully understand their obligations regarding declaration and management of conflicts of interest, consistent with public sector standards.

   Special report on Operation Exmouth (tabled PDF), page 6

2. Recommendation 2

   Places Victoria report back to IBAC on action taken on Recommendation 1 by 16 August 2016.

   Special report on Operation Exmouth (tabled PDF), page 6

3. Recommendation 3

   The Victorian Public Sector Commission consider ways to inform contractors to the public sector of their obligations to comply with public sector values, codes of conduct and integrity standards.

   Special report on Operation Exmouth (tabled PDF), page 6

Published responses

Responses to this report have not been checked.

Notes on this record

• Tabled: Legislative Assembly 2016-10-25; Legislative Council 2016-10-25.

Coverage

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