Media Releases
'Banker schools’ corruption investigation report tabled
Victoria’s anti-corruption commission has tabled a report to Parliament today on a major investigation into the abuse of the Department of Education and Training’s ‘banker school’ system.
“The Victorian community vests considerable trust in the public sector employees who are responsible for running the state’s education system and giving our children the best possible start in life,” Commissioner Stephen O’Bryan QC said.
“The knowledge that funds intended to support the education of some of the state’s most disadvantaged children were diverted by senior departmental officers for their own personal gain is understandably a cause for significant public concern.”
IBAC has recommended the Department of Education and Training:
- report on a range of reforms and improvements aimed at preventing corruption and building an Integrity culture
- undertake a review to identify and audit any remaining banker schools
- exclude people and entities whose behaviour has been found to be improper or corrupt from obtaining work with the Department or schools in the future.
IBAC is now preparing a brief of evidence for consideration by the Office of Public Prosecutions, regarding the conduct of a number of individuals.
Key findings
IBAC’s Operation Ord found:
- Mr Napoli exploited lax controls around the department’s banker school system to secure payments for false and inflated invoices, or inappropriate expenses such as excessive hospitality, travel and personal items. Other senior departmental executives were at times involved, including former Acting Secretary Jeff Rosewarne
- the abuse of the system was generally accepted and enabled by a number of school principals and business managers, in some cases in return for personal benefits such as overseas travel or promotion
- at least $1.9 million in profits went to relatives and associates of Mr Napoli between 2007 and 2014, with a further $1.1 million in suspicious transactions and $3.3 million in tainted or suspicious contracts awarded by Mr Napoli
- substantial weaknesses in the department’s systems, controls and culture created an environment where misconduct and corrupt conduct were able to flourish.
“By exposing serious and systemic corruption within the Department of Education and Training, IBAC’s Operation Ord highlights the detrimental effect of public sector corruption more broadly, and actions that need to be taken by public sector bodies to prevent it,” Mr O’Bryan said.
“The impact of Operation Ord has already been reflected in the commitment of the Secretaries of all seven Victorian government departments to work together to strengthen integrity and prevent corruption across the Victorian public sector.”
Note: Operation Ord information and documents are unavailable while the matter is before the courts.
Media contact: media@ibac.vic.gov.au or 0427 480 840
Media note: Interviews will not be available.
