Explanation |
|
DPFC |
Dame Phyllis Frost Centre |
DEECD |
Department of Education and Early Childhood Development |
HR |
Human Resources |
ICAC |
NSW Independent Commission Against Corruption |
ICAC/OPI |
Independent Commissioner Against Corruption South Australia/ |
LGI |
Local Government Inspectorate |
LSC |
Leading senior constable |
LTQAP |
Learning Technologies Quality Assurance Project |
MFESB |
Metropolitan Fire and Emergency Services Board |
PRSB |
Police Registration and Service Board |
TAC |
Transport Accident Commission |
TAFE |
Technical and Further Education |
VAGO |
Victorian Auditor-General’s Office |
VBC |
Victorian Building Commission |
VCGLR |
Victorian Commission for Gambling and Liquor Regulation |
VO |
Victorian Ombudsman |
VPS |
Victorian Public Service |
VPSC |
Victorian Public Sector Commission |
VPS code of conduct |
Code of conduct for Victorian public sector employees |
1 Overview
The Victorian public sector is large and diverse, with movement of people in and around the sector through a variety of employment arrangements. Over the last decade or so, there has been an increased reliance by public sector agencies on alternative forms of employment, including greater use of contractors and consultants, and engagement of personnel through recruitment agencies.
Employment-related activity in the public sector, particularly recruitment, is routine and constant. The principle of merit-based and competitive recruitment processes is well established. Under the Public Administration Act 2004, public agency heads are required to ensure employment decisions are merit-based. Under the Code of conduct for Victorian public sector employees (VPS code of conduct), public officers are expected to make decisions about employment based on impartiality, rather than favouritism, bias or self-interest. They are also required to use their powers responsibly, and not to provide a private benefit to themselves, their family, friends, or associates.
For the most part, employment activity is well managed and conducted in accordance with agency or public sector-wide standards. However, if employment practices are corrupted, the potential adverse consequences are significant.
Employment practices in the Victorian public sector are clearly vulnerable to corruption and misconduct risks. These risks have been highlighted by IBAC investigations and research, and by other integrity agencies including the Victorian Ombudsman (VO). Risks include recruitment compromised by nepotism and poor management of conflicts of interest, and by ‘recycling’ of employees with problematic discipline and criminal histories. The unwitting recruitment of a person with a discipline or criminal history that should preclude them from employment, for example, can place agencies at risk of the misuse of public funds, as well as substantially damage agency reputations.
The findings of this report are based on consultations with relevant Victorian public sector agencies, IBAC research, investigations and data holdings and other materials. The report highlights the corruption vulnerabilities associated with employment practices across the Victorian public sector and alerts public sector agencies to opportunities to strengthen their systems and practices to mitigate those vulnerabilities. It is noted that agencies need to tailor corruption prevention and detection strategies to their operating environments, to ensure the strategies they adopt are effective and proportionate.
IBAC has consulted with the Victorian Public Sector Commission (VPSC) on the findings of this research report, and understands that the Commission is examining ways in which the vulnerabilities identified can be addressed.
1.1 Key findings
- Employment practices in the public sector are vulnerable to corruption at different stages of the employment life cycle, from recruitment through to an employee leaving the sector. Public sector agencies need to be aware of these risks and consider how they can strengthen their systems and practices to address them.
- Inadequate pre-employment screening (such as failing to require applicants to provide information about qualifications, work history, discipline and criminal histories, and conflicts of interest) can place a public sector agency at greater risk of corruption. There have been instances where agencies have pre-employment processes in place, but have not consistently implemented them.
- Recruitment is vulnerable to compromise by nepotism, favouritism and conflicts of interest. Selection processes can be corrupted in the earliest stages of recruitment (such as during the development of position descriptions) and by the failure of panel members to declare or manage conflicts of interest.
- There may be corruption risks associated with the use of recruitment agencies, ranging from the circumvention of merit-based selection and probity processes, through to complex schemes like ‘double dipping’ (involving public sector employees or contractors establishing a company and then using a recruitment agency to source contractors through that company).
- ‘Recycling’ of employees with problematic discipline or criminal histories throughout the public sector is a significant corruption risk.
- Where complaints are made about public sector employees and action is taken, ongoing oversight and follow-up does not always occur, which risks misconduct or corrupt conduct continuing.
- Conflicts of interest can arise when an employee leaves the public sector and takes up a position in the private sector, directly utilising the knowledge and relationships acquired in the public sector. Certain positions, particularly those involving interaction with the private sector, present a greater risk in relation to such conflicts.
The Victorian public sector The public sector is a major employer in Victoria. As at 30 June 2017, more than 297,0001 and 43,0002 people are employed in state government and local government respectively. These figures predominantly comprise full-time and part-time ongoing positions but also include contractors, consultants and other forms of non-permanent, temporary and fixed-term employees who also work across the public sector. The annual separation rate for various sectors ranges from 3.3 per cent (police and emergency services) to 10.2 per cent (creative industries, finance and transport).3 These separation rates mean that in 2016/17 around 38,000 (new, non-casual) positions were filled across the Victorian state government sector. More than one in six Victorian public sector employees are engaged on fixed-term contracts. The proportion of fixed-term employment in the Victorian public sector increased from 16.4 per cent to 19.1 per cent in the five-year period from 2012.4 |
1.2 Methodology
This report examines corruption and misconduct risks associated with public sector employment practices during key stages of the employment life cycle, namely recruitment, in the course of employment and after an employee leaves a public sector agency.
This report is based on:
- consultations with more than 20 Victorian public sector agencies, including the VO, the VPSC and the Victorian Auditor-General’s Office (VAGO)
- IBAC research, investigations and other data holdings
- open source materials, including research reports, academic literature and other materials.