ACT public service conflicts 'regularly mismanaged': corruption watchdog

The ACT Integrity Commission also identified record-keeping and hidden relationships and associations as potential corruption risks in the ranks of territory bureaucracy.

The findings were made in the new watchdog's 2019-20 annual report, which was tabled in the ACT Legislative Assembly on Tuesday.

The Canberra Liberals pressured Chief Minister Andrew Barr about the report in Question Time on Wednesday afternoon, pressing the Labor leader on what action was being taken to guard against corruption in the public service.

Mr Barr said his government took "these matters seriously" and would act on the areas identified in the report, although he did not explain how.

"I have no problem with taking on board the advice of the Integrity Commission," he said.

"It is why they were established. It is why one of their fundamental roles was around education. It wasn't just about phone taps and all that sort of stuff - it was about education."

The commission, which commenced in December 2019, had received 76 complaints as of June 30, with full investigations launched into two cases.

The annual report showed that reports had been made about alleged misuse of public funds, corrupt decision-making, fraud, collusion between agencies, cronyism and maladministration.

While no further detail was provided on the cases, the commission's report did expand on some of the themes and "emerging corruption vulnerabilities" that had become apparent in its first seven months of operation.

It found that despite a strong governance and policy framework, conflicts of interests were "poorly understood and regularly mismanaged" in the ACT public service.

"It is not uncommon for public officials to underestimate the risks associated with actual, potential and perceived conflicts of interest, and overestimate their ability to manage these conflicts appropriately, increasing the risk of corrupt compromise and damaging the reputation of the public sector," the report stated.

The commission found that public officials involved in major procurement decisions or recruitment were "rarely required" to declare that they did not have a conflict of interest.

That approach meant it was left to the officials determine what was - or was not - declared, heightening the risks of conflicts being concealed, the report said.

The corruption watchdog recommended that ACT agencies make conflict of interest disclosures mandatory for officials involved in key decisions.

Asked on Wednesday if he would order his directorate to mandate disclosures, Mr Barr said he "didn't have a problem" with the idea in principle.

Record-keeping was cited as another potential problem area, with the commission warning that poor or inconsistent practice could increase the risk of corruption occurring, hinder police investigations and harm the integrity and reputation of the government.

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It also warned about the risks of undeclared relationships and associations in the ACT's "relatively small and interconnected community".

"Relationships between public officials and members of corporate entities with a specific interest in providing commercial or other services to the ACT government may represent a significant corruption vulnerability if they are not declared and managed effectively," the report said.

The Canberra Times contacted the head of the ACT public service, Kathy Leigh, for comment.

In a statement, an ACT government spokesman said the ACT public service placed a strong emphasis on integrity.

"This is reinforced through our workplace policies and practices and through the behaviours that are expected of staff at all levels," the spokesman said.

"The insight provided by the Integrity Commission serves to remind us of the importance of the well-established and proven practices that help to ensure the conduct and actions of the public service remain at the highest standard of integrity and meet community expectations."

The commission's report, which was originally due to be published before Christmas, highlighted the challenges the new agency faced as the COVID-19 pandemic struck just three months after its inception.

The commission's investigations unit had just two people in March 2020, a contractor and a senior investigator seconded from SA's Independent Commission Against Corruption.

SA's border closure forced that official to return home, leaving the ACT watchdog with just person to investigate complaints.

ACT Policing seconded one of its officers to help the commission, which eventually brought two new investigators on board in June and July.

The commission had received 140 complaints and was investigating three cases as of December 1.

The ACT Integrity Commission is still searching for a full-time replacement for inaugural commissioner Dennis Cowdroy, who resigned in November.

Former NSW police watchdog Michael Adams has been acting in the position since mid-January.