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Corruption fears stop private sector from bidding on public contracts

Corruption, or at least the perception of it, is potentially stopping a third of businesses from bidding on Victorian government contracts.

Survey results released today by IBAC, Victoria’s anti-corruption commission, revealed 40 per cent of respondents believe corruption to be a problem in the Victorian public sector, and 34 per cent have been deterred from bidding for contracts because of their concerns about corruption.

“These results indicate – rightly or wrongly – that public sector procurement is perceived as open to corruption, and that there are concerns around an uneven playing field for Victorian suppliers,” IBAC CEO Alistair Maclean said. 

“We now know this perception is stopping businesses from bidding for government work, which raises questions of value-for-money and the quality of goods and services the public sector is delivering for Victorians. To help restore confidence, public sector agencies must have robust anti-corruption measures in place that protect their procurement processes from exploitation.”

Other key findings:

  • A third of respondents believe it is typical for public servants to give suppliers unequal access to tender information and a quarter believe it is typical for confidential tender information to be leaked 
  • Half of respondents believe it is typical for gifts to be offered to public servants, just under half believe public servants accept gifts or benefits, and seven per cent state a public servant has asked them to provide a gift, cash or other benefit
  • More than half of respondents believe it is typical for public servants to improperly favour certain suppliers during the selection process 
  • Almost two thirds of respondents are likely to report corruption when they suspect it. 

IBAC’s report includes a range of recommended measures public sector agencies could take to strengthen procurement practices and build public confidence in the state’s procurement processes. Such actions include better communication with suppliers on public procurement standards, a ban on public sector employees receiving gifts, benefits or hospitality from suppliers, and the introduction of oversight arrangements of procurement activity.

Completed earlier this year, the survey was prompted by procurement issues identified in major IBAC investigations into the Department of Education and Training and Public Transport Victoria.  

Suppliers concerned about suspected corruption in procurement in the Victorian public sector are encouraged to report concerns to IBAC.


Media contact: media@ibac.vic.gov.au or 0427 480 840
Media interviews will not be available