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The review findings suggest that while there are some good anti-corruption practices in place, there are a number of areas where councils could significantly improve their processes to reduce the risks of corruption.

A 2013 investigation into allegations of corrupt conduct at Mitchell Shire Council’s works depot identified several issues which increased the risks of corruption occurring.

Recognising that other councils may face similar risks, IBAC reviewed six Victorian council depots to identify common corruption risks and areas for improvement.

“We now know that these corruption risks are not isolated to Mitchell Shire Council,” IBAC CEO Alistair Maclean said.

“Procurement, management of small plant and equipment and bulk consumables, leadership and culture are common issues that leave depots vulnerable to corruption.”

Policies and practices of concern to IBAC included:

• a number of councils allowing purchase orders to be created after they were invoiced for the goods or services
• policies allowing council employees or work units to bid for council tenders
• having unrestricted access to stores containing valuable small plant and equipment
• allowing depot employees to hire depot plant and equipment for personal use. After IBAC highlighted the concerns with this practice, the council issued an immediate directive to cease the practice.

Similarly, once council CEO had as recently as 2013 stopped a practice of allowing staff to sell scrap metal from council projects to funds the depot social club functions.

While the review found areas for improvement across the six works depots, IBAC also observed many good practices throughout the project. More importantly, councils are acting on the issues raised during the course of the review, to work towards a more corruption-resistant workforce.

“Local government leaders need to have a good hard look at how they run the depots to address the risks we have detected.”

“Given the resources and responsibilities entrusted to local government, it is important that councils operate efficiently and effectively and continuously seek to improve their capacity to prevent corrupt conduct.”

The review found that:

• in general, councils could significantly improve their systems and processes, and workplace culture, to strengthen their organisation against corruption
• although councils’ procurement policies were generally clear, there were opportunities for improvement in procurement practices
• there were significant deficiencies in the management of small plant and equipment
• councils could significantly improve their management of and accountability for bulk consumables
• councils could better tailor training content and delivery methods for operational staff to promote a shared understanding of organisational values and increased awareness of fraud and corruption risks.