IBAC Insights (newsletter)

Would you be surprised if you found out one of your colleagues had lied about their qualifications and work experience in order to get their job? Maybe you're aware of a colleague employing a friend or family member without revealing their relationship. Unfortunately, these scenarios are not hypothetical, but actual case studies in a new report released recently by Victoria's anti-corruption body, IBAC.

Concerningly, research released by IBAC shows public sector employees believe these situations are not uncommon; for example, 35 per cent of state government employees surveyed suspected hiring of family and friends had occurred in their workplace, while one quarter had seen it happen.

IBAC CEO Alistair Maclean says IBAC's recent report into corruption risks in recruitment and employment in the Victorian public sector found all stages of the employment 'lifecycle' are vulnerable to corruption, from recruitment through to an employee leaving the sector.

This is not unique to Victoria. Earlier this year, the New South Wales Independent Commission Against Corruption released a report regarding the perils of poor employee screening. This report cited research which indicates that between 20 and 30 per cent of job applications contain some form of false information. Last year in Tasmania, the Auditor-General investigated the recruitment of senior bureaucrats and found a number of appointments involved conflicts of interest that were not managed or reported, and referee checks were not adequate in some cases. There have been examples of very senior public sector employees being caught out. In South Australia, following an investigation by South Australia's ICAC, the Department of Premier and Cabinet's Chief Information Officer was sacked after she allegedly faked information on her resume regarding previous roles and academic qualifications. She was charged by ICAC, which is conducting an investigation into the recruitment process that resulted in her appointment.

In Victoria, the public sector is a major employer. There are almost 350,000 people employed in state government and local councils, and last year around 38,000 positions were filled in the state government sector. Mr Maclean says this volume, and the important work of the public sector in providing government services and facilities, underlines the importance of robust public sector recruitment and employment practices.

'Our research found that employment activity in the public sector is largely well-managed in Victoria. However, the report also suggests a range of measures could be introduced to strengthen systems and practices to help prevent misconduct and corruption,' Mr Maclean says.

One of the most significant risks IBAC's report identified was the so-called 'recycling' of employees with problematic discipline or criminal histories.

'This is when individuals conceal an undesirable disciplinary or criminal history during recruitment. If not detected as a result of inadequate background checks or lack of information sharing between agencies, the person is able to gain employment elsewhere in the public sector.'

Mr Maclean says currently information sharing across Victoria's public sector about employees is limited, and there is no central register of Victorian public sector employees who have complaint and disciplinary histories. As a result, he says, problematic employees can move between public sector agencies with little fear their history will follow them.

'Unfortunately it's not uncommon for employees, including police officers, accused of misconduct or corruption to resign while under investigation, and then secure employment elsewhere in the public sector.'

'Resigning before any findings allows them to avoid disciplinary action and limit damaging their employment prospects in other public sector agencies.'

He says a way to address this would be the creation of a central register of employees with concerning complaint and discipline histories. Mr Maclean says South Australia's Commissioner for Public Sector Employment is currently working to establish such a register. In Queensland, public sector employees can be subject to disciplinary action after they have left an organisation.

'If employment practices are corrupted, the potential for adverse consequences are significant. Corrupt conduct by public sector employees impacts on the delivery of vital government services and facilities. It wastes significant time and public money, and damages reputations and community trust,' Mr Maclean says.

His message to public sector human resources managers is simple:

'We encourage public sector human resources managers to read our report and consider how they can improve their systems and practices to help prevent corruption and misconduct in the public sector.'

Victorian Public Sector Commissioner Dr Paul Grimes welcomed IBAC's report, and said it provided timely insights into how public sector employment practices could be further strengthened.

'While it is pleasing to see the report finds most employment related activity is conducted in accordance with policies and public sector standards, the findings are still highly relevant and will be helpful in raising awareness across the public sector about employment related corruption risks and how they can be stopped.' Dr Grimes said.

In a further step to addressing corruption and misconduct risks associated with employment practices, the Victorian Public Sector Commission has issued the Victorian Public Service (VPS) Executive Pre-employment Screening Policy. Under the new policy all preferred candidates for executive level roles in the VPS will be required to complete a statutory declaration to disclose previous misconduct. 

As part of a process of continuous improvement, work continues within the VPS to develop further strategies to address risks raised by IBAC around the ‘recycling’ of employees.