IBAC issues red flag report
A new report says public servants must be able to spot infrastructure red flags.
A new research report examining projects led by Victoria’s Major Transport Infrastructure Authority details potential corruption pitfalls in procurement and construction processes.
The new report released by the Independent Broad-based Anti-Corruption Commission (IBAC) aims to help bridge the common integrity risks in major projects.
IBAC warns the common risks include fraud, collusion, and bribery during procurement, collusion and bribery.
IBAC acting commissioner Stephen Farrow says these projects are defined as high-risk, high-value initiatives, and can come with a host of issues that attract corruption and integrity possibilities.
“Public sector organisations know that corruption prevention starts with strong integrity frameworks and corruption controls, but the culture and expectations of public sector integrity must extend to project partners and suppliers to be successful,” he said.
The research paper says under-resourcing in the public sector can hinder public infrastructure initiatives.
“The limited pool of providers working across multiple projects has complicated recruitment for Victorian agencies and contractors, increasing the likelihood of conflicts of interests,” the report says.
“Contracting methods including public-private partnerships, alliance contracting and design and construct, are all ways of undertaking complex projects.
“Each have inherent risks for business planning, management, construction and completion.”
Acting Commissioner Farrow said all actors in large infrastructure projects have a responsibility to speak up and report suspected wrongdoing.
“It is essential that leaders set the ‘tone at the top’ about integrity and that breaches of anti-corruption policies and codes of conduct will not be tolerated,” he said.
The paper includes a three-part checklist to help public servants navigate organisational culture red flags, individual red flags, and third-party red flags.