Public sector integrity is essential for community trust. Victorians expect government employees and agencies to act in ways that are fair, transparent and accountable. However, a range of evolving pressures is increasing the risk of corruption in parts of the public sector, particularly in areas responsible for valuable information or managing high-value projects.

This blog explores the recent insights shared by the Independent Broad-based Anti-corruption Commission (IBAC) on corruption risks in the Victorian public sector and strategies for prevention.

Changing Conditions and New Vulnerabilities

In recent years, the Victorian public sector has operated in an environment shaped by complex and ongoing challenges. These include the COVID-19 pandemic, high inflation, interest rate pressures, a housing crisis, and budget constraints across government services.

Such conditions can place significant pressure on staff and systems. With rising costs and increased workloads, the likelihood of improper conduct may rise.

Some public sector agencies are more vulnerable than others due to the nature of their work. This includes those that:

• hold and manage valuable or sensitive information
• oversee high-value investment projects
• outsource the delivery of public services
• allocate significant public funds.

IBAC notes that understanding the different types of corruption risks is important for designing effective prevention strategies.

Risks Related to Information Misuse

Many public sector agencies hold sensitive data, including health records, personal contact details, economic forecasts, and financial information. Unauthorised access or disclosure of such information is a known corruption risk and can lead to reputational damage and loss of public trust.

Information misuse may involve data leaks, accessing information without permission, or sharing information for personal or financial gain. While these activities can enable broader corrupt conduct, they are sometimes viewed as low risk within agencies. IBAC intelligence suggests that incidents of information misuse are under-reported. This may be due to:

• limited detection systems
• low awareness of the seriousness of misuse
• an under-appreciation of privacy rights
• a lack of recognition that these actions may be offences in themselves.

Agencies looking to strengthen safeguards around information may consider:

• increasing the frequency and targeting of audits, which can act as deterrents
• enhancing education and training to reinforce ethical practices and awareness of legal responsibilities.

Managing Corruption Risks in Major Projects

Agencies involved in major projects – particularly those in infrastructure, housing, energy, and water – face distinct risks. These projects are often large, complex, and involve multiple stakeholders, including government departments, private firms, and unions.

In Victoria, the ‘Big Build’ program includes more than $90 billion in infrastructure upgrades. IBAC’s findings show that large-scale investments create opportunities for fraudulent practices, including overcharging and submission of false records such as timesheets. Risks may emerge during all stages of a project, from early planning through to implementation.

Specific vulnerabilities include:

• pressure on firms to favour particular suppliers
• use of fraudulent invoices
• lack of oversight due to complex contractor networks
• unclear responsibilities following machinery-of-government changes
• risk of bribery to fast-track housing requests or prioritise known suppliers.

Prevention strategies may include:

• embedding integrity functions into project teams
• conducting random site inspections
• applying robust project governance controls
• using data analytics tools for real-time monitoring
• upskilling employees and creating dedicated teams with expertise in managing capital works and procurement.

Each agency is encouraged to identify corruption risks specific to its environment and develop tailored approaches in response.

A New Tool for Transparency and Education

In December 2024, IBAC introduced the Corruption and Misconduct Allegations Dashboard. This tool, available on the IBAC website, presents data on the types and number of allegations received by IBAC across state government departments, local government, and Victoria Police.

The dashboard aims to support public sector bodies in recognising common risk areas and enhancing their prevention activities. It also promotes transparency by allowing agencies to compare their own data with trends seen in other organisations.

Sharing lessons and prevention strategies between agencies may help improve system-wide integrity.

Conclusion

Public sector corruption risks can arise in a range of contexts, particularly where high-value projects and sensitive information are involved. Changing economic and social conditions may increase these risks, but a proactive approach – centred on detection, education, and collaboration – can support prevention.

IBAC’s insights and resources, including the new dashboard, provide practical tools to help organisations recognise vulnerabilities and strengthen their internal controls. Agencies are encouraged to engage with this information, learn from one another, and continue to invest in their ethical cultures.

By doing so, public sector bodies contribute to a system that aligns with the values of fairness, accountability and public trust.

***

CourtHeath acknowledges the Traditional Aboriginal Owners of Country throughout Victoria and pays respect to Elders past and present, and to the ongoing living culture of Aboriginal people.

A participant in the UN Global Compact, CourtHeath seeks to raise awareness about the sustainable development goals and the principles of the Global Compact with business and government organisations in Victoria.

***

Image: Shutterstock

***