Assuring the integrity of the Victorian Government’s procurement activities
Overview
We plan to determine whether Victorian Government departments manage the risks of fraud and corruption when procuring goods and services.
Why this is important
Fraud and corruption by VPS employees can undermine trust in government, damage the reputation of the public sector, and waste public resources.
In 2015–16, the Independent Broad-based Anti-corruption Commission (IBAC) found weaknesses in DET’s fraud controls that led to allegations that senior departmental officers misappropriated funds from the department’s budget. The officers had created false and inflated invoices and arranged payment of inappropriate expenses, such as excessive hospitality, travel, and personal items.
The Victorian Secretaries Board (VSB)—made up of the secretaries of the 9 Victorian Government departments, the Victorian Public Sector Commissioner, and the Chief Commissioner of Victoria Police—responded to the findings. In 2016, they prepared an action plan to strengthen integrity frameworks in the public sector. The VSB and the Victorian Public Sector Commission (VPSC) identified initiatives to strengthen processes to address key integrity risks. They identified tendering and procurement as one of the 6 practices at risk of fraud.
In 2018–19, IBAC began 38 intelligence-led investigations and preliminary inquiries into 38 Victorian state government agencies and found that improper procurement conduct was one of the most identified risks.
What we plan to examine
In this reasonable assurance performance audit, we will focus on whether departments have implemented suitable controls to prevent fraud and corruption when procuring goods and services.
We propose to scope DELWP, DET, DFFH, DH, DJCS, DJPR, DoT, DPC and DTF into this engagement.
Timeframe
2023‒24