Media Releases
IBAC investigation uncovers corruption of procurement processes at women's prison
An investigation by Victoria’s anti-corruption commission, IBAC, reveals a former public sector manager abused his position at a Victorian women’s prison by helping his son win $1.56 million in contracts over a five year period.
In a report tabled to Parliament today, IBAC’s Operation Nepean provides findings of an investigation into allegations that Jeff Finlow, former manager of the facilities department at the Dame Phyllis Frost Centre (DPFC), ignored proper procurement processes and failed to fully declare and manage clear conflicts of interest.
The IBAC investigation found Mr Finlow subverted procurement processes to provide work to companies owned or operated by his son (and his son’s wife) to a value of $1.56 million. This included sharing competitors’ quotes, as well as failing to consistently obtain the required number of quotes for jobs, helping his son’s companies to submit cheaper quotes and win contracts.
Mr Finlow also used his position to influence the recruitment of another son at DPFC, despite his son not having the electrical qualifications required for the position.
In addition, IBAC revealed Mr Finlow accepted a fishing boat and trailer as a gift from a contractor, contrary to Department of Justice and Regulation (DJR) policy.
“Victorian public sector employees are expected to observe the highest standards of integrity. This includes avoiding conflicts of interest and demonstrating impartiality in making decisions without favouritism or self-interest,” IBAC Commissioner Mr Stephen O’Bryan QC said.
“Public servants are also required to refuse all offers of gifts and benefits that could be perceived as influencing them or undermining integrity.
“A conflict of interest, whether actual or perceived, which is not properly declared or managed, is a serious red flag for potential corruption, putting a public sector agency’s reputation and finances at risk.”
Mr Finlow was stood down from his position while an internal investigation was conducted by DJR. He resigned in June 2015.
After due consideration, IBAC decided there was insufficient evidence to charge Mr Finlow with criminal offences.
IBAC identified a number of corruption vulnerabilities at DPFC that helped facilitate Mr Finlow’s conduct. This included the failure of senior management to adequately oversight Mr Finlow or respond appropriately to his conflicts of interest. Recommendations are made by IBAC for DPFC to address these vulnerabilities.
IBAC has also recommended Corrections Victoria review its policies and procedures to address the corruption vulnerabilities identified in Operation Nepean and take steps to ensure those vulnerabilities are addressed by other prison facilities under its control.
Both DPFC and Corrections Victoria are to report to IBAC by 10 October 2017 on the implementation of the recommendations
Media contact: media@ibac.vic.gov.au or 0427 480 840
Please note: IBAC will not be providing interviews
