The community expects—and the law requires—that public sector employees act with integrity, accountability, impartiality, fairness, equity and consistency, and in the public interest.
Fraud and corruption can undermine trust in government, damage the reputation of the public sector, and waste public resources. Fraud is dishonest activity involving deception that causes actual or potential financial loss. Corruption is dishonest activity in which an employee acts against the interests of their employer and abuses their position to achieve personal gain or advantage for themselves or for others.
In this audit we examined the Melbourne Metro Rail Authority (MMRA), Public Transport Victoria (PTV) and the now defunct Major Projects Victoria (MPV), as examples of an administrative office, a statutory authority, and a business unit under the auspices of the Department of Economic Development, Jobs, Transport and Resources (DEDJTR).
We assessed whether their fraud and corruption controls were well designed and operating as intended.
We also assessed whether PTV took sufficient, appropriate and timely action to address issues identified by the Independent Broad-based Anti-corruption Commission’s Operation Fitzroy October 2014.
We made 11 recommendations for DEDJTR, and we made six further recommendations for PTV. All recommendations have been accepted.