Public service crime risk rises
Pressure on the State Budget is increasing the risk of corruption and misconduct because it prompts public agencies to outsource or get corporate sponsorship to deliver services.
The Corruption and Crime Commission sounded the warning yesterday in its first yearly "misconduct intelligence assessment".
The report tabled in Parliament paints a picture of a public sector growing in size, complexity and financial dealings.
Public sector expenses grew from $18 billion to $42.4 billion in the past decade as asset investments grew from $2.8 billion to $6.8 billion.
In that time corrupting forces and influences had become more complex and sophisticated and "the fiscal environment is one of contracting resource availability", the report found.
In the drive for efficiencies, public agencies explored alternative funding source models, including sponsorships, grants and donations.
"There are particular corruption and misconduct risks, including conflicts of interest and gifts and benefits, inherently associated with commercialised activities and the use of sponsorships, grants and donations in the delivery of public sector services, including education," the report says.
In 2011 the teachers' union warned against growing corporatisation after a $6.8 million sponsorship deal that stipulated the Education Department must promote a mining company as "committed to education in the Pilbara".
The CCC report also warns that the need to find savings without affecting frontline services meant "corners may be cut and compliance and governance controls will suffer".
Increased privatisation and outsourcing resulted in agencies forming close relationships with private industry.
This included regulating agencies, which created "increased inherent corruption and misconduct risks".
Outsourcing sensitive and valuable data management to the public sector also created a heightened misconduct risk.
Also tabled yesterday was a report by the joint standing committee on the CCC into improving the working relationship between the watchdog and WA Police.
It found there had been no meetings between the commissioners of the two agencies in the five years to 2014 and recommended formal meetings be scheduled.
