Media Releases

For noting: IBAC research reports present research into current and emerging trends and issues in public sector corruption or misconduct. In this report IBAC has used the Major Transport Infrastructure Authority (MTIA) as a reference point. It is not an investigation into the MTIA and does not identify corrupt conduct or misconduct occurring at the MTIA.

The Independent Broad-based Anti-corruption Commission (IBAC) has released a research report identifying the key drivers of corruption that can impact major Victorian infrastructure projects responsible for spending billions of taxpayer dollars each year.

IBAC has undertaken this research because of the size and complexity of this sector, the important role it plays in providing necessary infrastructure to Victorians, and the considerable public funds required to build these major projects.

The research report highlights a number of corruption risks in the construction workforce including fraud, collusion and bribery during procurement.

IBAC's research report Corruption risks associated with major transport infrastructure projects focuses on a number of projects overseen by the Major Transport Infrastructure Authority (MTIA) and undertaken through the Victorian Government's multi-billion-dollar Big Build initiative. These projects include the North East Link Program, the Level Crossing Removal Project, the Metro Tunnel Project, the West Gate Tunnel Project and future major projects including the Melbourne Airport Rail, and the Western Rail Plan.

The research flags key corruption drivers such as complex systems, processes and operating environments; high-level political, performance and economic pressures to deliver; and conflict of interest consequences resulting from a small number of major contractors and a shortage of technical experts.

Acting Commissioner Stephen Farrow, said he recognised that major infrastructure organisations faced unique challenges when managing private-public sector workforces, however they must meet community expectations around integrity, especially in relation to the use of significant public funds.

"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," Acting Commissioner Farrow said.

IBAC's research identifies a range of corruption prevention and detection tips for agencies and suppliers including centralised risk assessment, detection and prevention measures; information sharing between integrity officers and those responsible for leadership to ensure stronger integrity frameworks; and developing a culture of integrity across entire projects, including project partners and suppliers.

"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," Acting Commissioner Farrow said.

"When something is not right, it's up to all public or private sector employees involved in delivering a major project to speak up and report any suspected wrongdoing."

The findings of the report are broadly applicable to the entire major project sector and to agencies delivering high value, high risk projects.

IBAC will continue to engage with key stakeholders across the major infrastructure sector to raise awareness of the risks identified in this research report and to support corruption prevention.