An investigation by the Independent Commissioner Against Corruption has uncovered a reticence among senior officers at the Department for Innovation and Skills to report a vocational education organisation for allegedly manipulating the subsidies it was paid.
In her Report, Received or Deceived? Managing and monitoring the conduct of government contractors, Commissioner Ann Vanstone (pictured) said instead of reporting the matter to the Office for Public Integrity, senior officers made attempts to manage the situation internally.
“Some Department staff expressed disquiet about the appropriateness of this strategy, arguing that Departmental delay and failure to promptly report the matter might be construed as concealment, and possibly implicate the Department in the improper behaviour,” Commissioner Vanstone said.
“Differences of opinion about whether a threshold of suspected corruption is met are inevitable,” she said.
“Corruption and fraud can sometimes be difficult to identify, especially in the context of contractual relations.”
Commissioner Vanstone said the investigation revealed that staff were contending with challenging matters of integrity and corruption, and questioning how best to address and expose them.
“This was in spite of the Department’s evident commitment to instructing staff on their reporting obligations,” she said.
“In our ‘reformed’ integrity landscape where common dishonesty charges are no longer classed as corruption, it is likely that reporting of this sort of conduct in the future will be further restrained.”
Commissioner Vanstone said the Report was prompted by a completed Commission investigation into a registered training organisation contracted to the Department.
“The organisation was alleged to have manipulated the subsidies it was paid for delivering vocational education and training services,” she said.
“This was not the first time that the Commission has investigated allegations of suppliers or contractors improperly manipulating their contracts with Government and seeking to conceal the dishonest conduct.
“Because of recent legislative changes which removed deception and other dishonesty from the Commission’s jurisdiction, it may be that such conduct cannot be investigated by the Commission in the future.
“This makes it all the more important for public authorities to take steps to ensure they have adequate controls in place to prevent dishonest conduct on the part of contractors.”
The Commissioner’s 12-page Report can be accessed at this PS News link.
