A new research report released by the Independent Broad-based Anti-Corruption Commission (IBAC) alerts Victorian government departments and community service organisations (CSO) to key corruption risks. These include procurement and contract management, conflicts of interest, cash handling, false/inaccurate reporting practices and misuse of sensitive information.
Vulnerabilities in how departments and CSO boards oversight the delivery of government-funded services by CSOs, overlap or duplication of regulatory activity, and gaps in CSOs' governance and corruption prevention frameworks were also highlighted as potential corruption risks.
IBAC's research report, Corruption risks associated with government-funded human services delivered by community organisations highlights the corruption risks and drivers that can be experienced by CSOs and identifies ways to mitigate the risks.
IBAC Commissioner The Honourable Robert Redlich AM, QC said that CSOs receive government funding to deliver vital programs for the Victorian community including child and family services, drug and alcohol services, aged care, social housing, homelessness and disability services.
"CSOs play a critical role in delivering human services on behalf of the Victorian Government. These organisations generally perform exemplary services for the community despite sometimes experiencing resource and capability constraints, including in response to the added challenges brought on by the COVID-19 pandemic," Commissioner Redlich said.
"The impacts of corruption are far reaching, particularly when it results in the waste of public funds and has the potential to jeopardise services delivered to vulnerable people and communities.
"Our research report looked specifically at CSOs funded through the Department of Families, Fairness and Housing and the Department of Health. These departments need to strengthen their oversight, governance and support of CSOs, helping them to build their capacity to prevent corruption and ensure public funds are spent appropriately. This responsibility extends to the boards of CSOs as well.
"IBAC's research reveals some CSOs lack dedicated governance and corruption policies. It is important for staff working in these organisations to be able to recognise corrupt conduct and understand the processes to report it. We want to make sure employees know there are options for reporting either through CSOs, to the departments and agencies funding these services, or to IBAC," Commissioner Redlich said.
IBAC recognises there are already some steps being taken by government departments, CSOs and regulators to mitigate corruption risks including new reporting and oversight systems. However, recent matters before IBAC continue to expose how the key corruption risks identified in this report can impact CSOs. These matters will be subject to future reporting.
IBAC will continue to engage with key stakeholders across the Victorian public service and the CSO sector to raise awareness of the risks identified in the report and to support corruption prevention.
About IBAC
IBAC is Victoria's agency responsible for preventing and exposing public sector corruption and police misconduct. This also covers the not for profit sector where organisations receive government funding to provide services on behalf of the government. Suspected corrupt conduct can be reported to IBAC, including anonymously. To report corruption and misconduct now, visit www.ibac.vic.gov.au/report or call 1300 735 135.
