26 September 2023

IBAC finds doubt in $1.2 million contract

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The former Department of Health and Human Services (DHHS) failed to conduct a competitive process before awarding a $1.2 million contract, according to a special report from the Independent Broad-based Anti-corruption Commission (IBAC).

Acting Commissioner at IBAC, Stephen Farrow said that in October 2018, the then DHHS entered a contract with the Health Education Federation (HEF) – a recently established entity linked to the Health Workers Union (HWU) – to provide occupational violence and aggression training to health workers.

“Operation Daintree uncovered that DHHS did not conduct a competitive process before awarding the contract to the HEF and a senior advisor to the Minister for Health had improperly influenced the awarding of the contract to the HEF,” Acting Commissioner Farrow said

“IBAC’s Operation Daintree revealed breaches of duties and obligations of ministers, ministerial advisors and senior public servants,” he said.

“Our investigation showed that the HWU was given privileged access and favourable treatment in its access to ministerial offices.”

A/Commissioner Farrow said the proposal from HEF raised a conflict between the Government’s interest in procuring the most suitable supplier for the training and the Governing party’s interest in assisting an affiliated union.

He said this conflict of interest was not properly managed or declared.

“Advisors in the Premier’s Private Office and the Minister for Health’s office also interfered in the management of the HEF contract to obstruct consideration of its termination and to ensure it continued,” the A/Commissioner said.

“The DHHS awarded the contract to HEF without a competitive procurement process due to senior staff in the Department believing it was the Minister’s and Government’s preference, and because of ongoing pressure from both the Minister for Health’s advisor and Secretary of the union,” he said.

“This conduct by senior public servants falls short of the required Victorian public sector standards.”

A/Commissioner Farrow said IBAC made 17 recommendations to ensure Ministers had a clear understanding of their obligations and accountability for the management of ministerial staff and that the role of ministerial advisors was far more transparent and accountable.

IBAC’s 128-page Operation Daintree Special Report can be accessed at this PS News link.

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