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Governance breakdowns– insights from ICAC
Stephen Wood MBA
Senior Corruption Prevention Officer
6A
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Scale and breadth of corruption
• What is the level of public sector corruption?
• Is it going up or down
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Key trends
• Change in public sector approaches
• Blurring of lines
• Organisational change
• Constrained capability
• Gig economy
• Technology and cybercrime
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NSW Snapshot
• NSW public sector exceeds $100B in revenue, $110B in expenditure and manages over $550B in assets1
• 24% witnessed misconduct – 66% reported it2
• 44% of surveyed agencies reported 1077 frauds averaging $21K• Average for procurement related was $225K3
1 Calculated from NSW Budget Statements 2018-19 together with 2017 financial statements of universities and local councils
2 People Matter Survey Main Findings Report 2018
3 NSW Audit Office Fraud Survey for period 1 July 2012 to 30 June 2015
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Systemic issues
• Three main categories• Individuals
• Management of business units or organisations
• Organisational processes
• Opportunity rarely created – predominantly violation of procedure/policy/regulation
• Inter-related systemic risk areas
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Common governance failings
A few recent and past examples:
• Tarlo
• Yarrow
• Ricco
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Building better processes and controls• Performance measures
• Complaint management
• Conflicts of interest
• Human resource management
• Procurement
• Regulatory activity
• Non-government organisations
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Summary
• ability to exercise unilateral control over key decisions
• use of discretion and existence of potentially inappropriate relationships
• supplier due diligence
• analytics
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Further information
• www.icac.nsw.gov.au
• +61 2 8281 5999
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Questions
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