Common forms of corrupt conduct: risks faced by NSW public sector agencies

By The Independent Commission Against Corruption (NSW)

This guide assists NSW public sector agencies in understanding the nature and prevalence of common and systemic corruption issues they are likely to encounter. The NSW Independent Commission Against Corruption (“the Commission”) publishes information on only a few investigations among the thousands of allegations and reports it receives. Underrepresented in these reports are many of the most common, often systemic forms of misconduct that public sector agencies encounter. This guide is designed as an introduction to these minor but common forms of corrupt conduct within the public sector in the knowledge that preventing low-level corruption is an important element of reducing and preventing corruption overall. Preventing minor but common forms of misconduct is important for a number of reasons: widespread minor instances of misconduct can amount to a significant financial loss as well as to serious or escalating acts of corruption. Less serious forms of misconduct can also provide agencies with early warning about internal controls that could be improved, and the prevalence (or absence) of common forms of corruption plays an important role in determining an agency’s workplace norms. For these reasons, identifying and preventing minor acts of corruption is a high priority for the Commission.

Key areas and issues include

• Recruitment

• Procurement and contract management

• Timesheet, roster, and payroll fraud

• Outside employment

• Misuse of resources, including time

• Misappropriation of goods and funds

• Failures to identify and disclose conflicts of interest

• Unauthorized use of information

The guide outlines measures that can assist as corruption controls, as well as highlighting key risks, red flags, and best practice controls for each key area.

Sydney: The Commission, 2024.