New inquiry launched to address public sector ethical crisis

The Joint Committee of Public Accounts and Audit (JCPAA) has commenced an inquiry into the administration of Commonwealth regulations, following a damning report on the state of ethics and integrity in the public sector that revealed widespread non-compliance with legal and regulatory standards.

“Too often the public sector is falling short of the high standards of professionalism required of it. Risk tolerance for non-compliance is unacceptably high and ‘getting things done’, even if it involves cutting corners, has sometimes become more important than complying with the law,” said the JCPAA Committee Chair, Julian Hill MP.

He added, “This inquiry will examine how agencies assess compliance risk, inform compliance and enforcement strategies, and identify and address incidences of non-compliance with Commonwealth rules and regulations. The Parliament provides regulatory power to agencies, and we will assess the extent to which full and appropriate use is being made of these powers.”

Despite breaches of finance laws in the Department of Health’s handling of former Health Minister Greg Hunt’s hospital grants project, government officials received corporate ‘Congestion busting’ awards. This included expenditures made without legislative authority, blatantly disregarding legal advice.

It was therefore recommended that the Secretary of the Department of Health and Aged Care, Blair Comley, formally reviews the appropriateness of the ‘congestion busting’ awards in light of the Australian National Audit Office (ANAO) report, and considers whether the awards for this project should be revoked, in particular from senior officers involved.

The government’s newly announced Commonwealth grant rules and principles (CGRPs), effective October 1, will mandate quarterly reports to Parliament whenever federal funds are allocated in a minister’s electorate against official advice.

“We want to ensure the process of awarding grants is open and transparent,” said Minister for Finance and the Public Service, Katy Gallagher.

“After the previous Coalition government’s record…there is an expectation that when it comes to the administration of grants and taxpayers’ money governments should act with the highest standards. The [GCRPs] will enhance accountability and provide the Australian public with greater confidence that grants are delivered in the best interests of the community.”

Submissions to the JCPAA inquiry addressing the terms of reference are invited by 15 August 2024.

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