Media Releases

IBAC today tabled a report to Parliament on its investigation, Operation Exmouth, which found a former senior employee of Places Victoria, Carmine Petrone, awarded contracts for work to entities with whom he had a familial relationship, and flouted Places Victoria policies in a range of areas, including procurement, declaration of conflicts of interest, information management, and recruitment.

Operation Exmouth also identified the broader need for public sector agencies to ensure their contractors understand and comply with public sector standards, codes of conduct and all relevant policies.

IBAC Commissioner Stephen O’Bryan QC said the investigation found Places Victoria did not provide sufficient training and guidance around policies and procedures, and as a result, missed opportunities to detect and address Mr Petrone’s improper management of contracts. Mr Petrone is no longer employed by Places Victoria.

“By sharing the findings of this investigation, IBAC draws the attention of all public sector agencies to the real risks and vulnerabilities that exist for corruption to occur, and we have made clear recommendations to help agencies prevent corruption,” Mr O’Bryan said.

Mr O’Bryan said it was incumbent on all Victorian public sector agencies to ensure they not only had the appropriate policies and procedures in place, but that they made sure they actively monitored and implemented these polices and undertook regular, ongoing internal education of staff and contractors.

Operation Exmouth also found that Places Victoria had inadequate recruitment screening processes in place. For example, when recruiting Mr Petrone, Places Victoria failed to identify that he had been dismissed from a previous (private sector) employer for serious misconduct.

“Recycling problematic employees is a very real issue. IBAC and the Victorian Ombudsman have previously highlighted the need for public sector agencies to strengthen their recruitment and employment systems and practices to prevent such recycling,” Mr O’Bryan said.

IBAC recommended Places Victoria review its policies and procedures to ensure:

• appropriate due diligence processes to establish genuine new and existing contractors 
  induction and training for new contractors and subcontractors to ensure they are aware of their obligations, including those relating to public sector values and codes of conduct
  robust recruitment processes, including appropriate security vetting processes for employees prior to recruitment and during the course of employment
• a clear conflict of interest framework is in place
• improved information security
• enhanced procurement and contract management systems.

Places Victoria has responded to IBAC’s recommendations, outlining action taken or providing its response to existing arrangements, which it believes are sufficient.