Western Australia's corruption watchdog has issued a powerful warning to the state's public sector after a senior Perth rail manager was found to have helped a friend's company secure lucrative taxpayer-funded work.
A Breach of Trust and Process
The Corruption and Crime Commission (CCC) investigated the actions of a manager within the Public Transport Authority's (PTA) railcar maintenance division. The investigation, detailed in a report released on Tuesday, found the manager engaged in serious misconduct by failing to declare a significant conflict of interest.
The manager held a close personal friendship with a director of a company that was bidding for and subsequently won maintenance contracts with the PTA. Despite this clear conflict, the manager did not recuse himself from the procurement processes. The CCC found he actively participated in evaluating the company's tender and was involved in discussions about the contract's scope and value.
This misconduct directly contravened the PTA's own code of conduct and the broader Public Sector Management Act. The manager's actions compromised the integrity of a process designed to ensure fairness and value for public money.
Systemic Failures and the Watchdog's Verdict
The CCC's report went beyond the actions of the individual, highlighting concerning systemic failures within the agency's oversight. It found the PTA's processes for identifying and managing conflicts of interest were inadequate at the time.
The investigation concluded that the manager's conduct was so serious it could constitute 'corrupt conduct' as defined by the state's Corruption, Crime and Misconduct Act. However, the commission decided against pursuing a prosecution, citing the manager's eventual cooperation, admission of wrongdoing, and the fact he is no longer employed in the public sector.
Instead, the CCC has used the case as a critical lesson for the entire WA public service. The report serves as a stark reminder of the fundamental importance of declaring and managing conflicts of interest to maintain public trust.
Key Recommendations and Sector-Wide Implications
The commission did not make specific recommendations against the individual but emphasised the need for robust systems. The core message is a directive to all government departments and agencies to scrutinise and strengthen their governance frameworks.
The CCC stated that public officers must be vigilant in:
- Declaring any actual, potential, or perceived conflicts of interest immediately.
- Removing themselves from any decision-making process where a conflict exists.
- Ensuring procurement and contracting processes are transparent and beyond reproach.
This case underscores the ongoing risk to the proper use of public funds when personal relationships are not properly managed within the bureaucracy. The watchdog's public report aims to deter similar behaviour by demonstrating the serious professional and reputational consequences that can follow.
The Public Transport Authority has acknowledged the CCC's findings. A spokesperson stated the agency has since reviewed and enhanced its policies and training around conflicts of interest, gift declarations, and procurement practices to prevent a recurrence.
