Special report on corruption risks associated with procurement in local government: Operations Dorset, Royston and others

Summary

The report's own summary: Summary of investigations and key findings, pages 7 to 12

In the body's own words

1. Finding

   IBAC found the project manager played a critical role in an associate obtaining a large financial advantage from the council.

   SPECIAL_REPORT_-_Procurement_in_Local_Government__Operation_Dorset__Royston_and_others__-_September_2019_3QjVXrs1, page 9

2. Finding

   IBAC found that over a two-year period, Mr Carey unlawfully authorised payments totalling $184,123 and that he obtained $103,630 in benefits by way of direct pecuniary interest or secret commissions.

   SPECIAL_REPORT_-_Procurement_in_Local_Government__Operation_Dorset__Royston_and_others__-_September_2019_3QjVXrs1, page 10

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 2

1. Recommendation 1

   The CEOs of Darebin City Council and the City of Ballarat Council separately report to IBAC within 12 months of this report, to advise how they have strengthened their councils' procurement policies, systems and practices to address the corruption vulnerabilities identified by IBAC in this report, including by ensuring: a. robust information management processes are in place to accurately document all procurement activities in an auditable manner b. key elements of the procurement process are segregated and regular checks are conducted to test the effectiveness of those mechanisms, which may include periodically rotating managers with significant responsibility for procurement c. suppliers are sourced in a way that complies with competition requirements set out in legislation and/or procurement policies and procedures d. audits and risk assessments are conducted to help identify system vulnerabilities that may not have been detected through regular monitoring processes e. training for all employees involved in procurement effectively covers relevant policies and procedures including the council’s procurement policy, conflict of interest procedures, code of conduct, and the responsibilities of financial delegates f. regular communication with employees and suppliers regarding their responsibility to report suspected corrupt conduct and how to make a report.

   Special report on corruption risks associated with procurement in local government: Operations Dorset, Royston and others (tabled PDF), page 12

2. Recommendation 2

   Local Government Victoria consider the development of a code of conduct for suppliers to Victorian councils, consistent with the state government suppliers’ code of conduct developed by the Victorian Government Purchasing Board, to help local government suppliers understand minimum standards of conduct when conducting business with councils. The code should clearly state what is expected of suppliers in relation to declaring conflicts of interest and the reporting of suspected misconduct or corrupt conduct on the part of council employees and other suppliers.

   Special report on corruption risks associated with procurement in local government: Operations Dorset, Royston and others (tabled PDF), page 12

Published responses

Responses to this report have not been checked.

Notes on this record

• Tabled: Legislative Assembly 2019-10-15; Legislative Council 2019-10-15.

Coverage

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