On December 4 2018, the NSW independent Commission Against Corruption (ICAC) released the report – Corruption and integrity in the NSW public sector: an assessment of current trends and events (the Report). The Report reviews the nature and corruption and integrity in the NSW public sector. In doing so, the Report identifies and explores the "emerging trends, hotspots, case studies and notable practices that have been brought to ICAC's attention."
The Report acknowledges that by global standards, NSW does not have a significant level of public sector corruption. However, the Report suggests that there is no room for complacency and all public sector executive and employees should read and adopt the advice in the Report.
The most notable trends identified in the Report are as follows:
Blurring of lines between public, private and not-for-profit sectors
The relationship between government agencies, businesses and not-for-profit organisations has shifted; so much so that the dividing line between public and private sectors has been diminished. ICAC recognises that contractors likely have "different attitudes to the use of public money, the management of conflicts of interest and public sector accountability conventions." An example of blurred lines between the public and private sector is a contractor who is issued with a public sector credit card.
Constrained markets
Public sector agencies that are required to work in constrained markets often have a tendency to compromise standards. This can lead to corrupt conduct such as contracting with parties that have conflicts of interest, failing to segregate duties, failing to protect confidential information or overlooking contract breaches.
Organisational change
The Report states that opportunities for corrupt conduct arise either during or after a period of poorly executed organisational change. ICAC recognises that agencies can easily lose focus on corruption prevention controls during a period of large transformational change. This is caused by a "climate of discontent, confusion and uncertainty in which corruption can flourish."
The gig economy
The gig economy refers to short-term or freelance work, in which numerous public officials are engaged in through secondary employment. ICAC note that persons who work in the gig economy have little or no loyalty to their government employer. This can lead to corrupt conduct through conflicts of interest and the misuse of information and resources.
Technology
ICAC has recognised a noticeable increase in corrupt conduct relating to the procurement, delivery and monitoring of ICT products. This is partly due to the unique characteristics of ICT and the growing share of public sector expenditure devoted to ICT.
Cybercrime
ICAC also recognises the increase in cybercrime. The most common types of cybercrime include spearphishing, theft of confidential information and ransomware.
The Report also explores whistleblowing, human resources, procurement and contract management, regulation and accreditation and non-government organisations. The Report is designed to assist agencies in targeting the greatest risk areas, as identified above.
The Report can be downloaded here.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
