Perceptions of corruption: survey of Victorian government suppliers

Abstract

IBAC has identified significant corruption risks associated with public sector procurement. More than a quarter of our investigations have examined allegations around suspected corrupt conduct in procurement processes, and three of the four public hearings we have conducted to date have examined allegations around corrupt practices in procurement. This report examines suppliers’ perceptions of corruption in Victorian public sector procurement, based on a survey of suppliers who have contracted goods or services to the Victorian public sector (comprising both state and local government), as well as suppliers who are interested in potential future contracting opportunities. The survey revealed: 40 per cent of respondents perceive corruption is a major or moderate problem in procurement in the Victorian public sector, while 34 per cent indicated they had been deterred from bidding or tendering for government work because of their concerns about corruption.  52 per cent believe it is typical for gifts, benefits and hospitality to be offered by other suppliers to public sector officials, while 59 per cent believe it is typical for public sector procurement officials to favour certain suppliers.  Nearly two thirds of suppliers are likely to report corruption when they suspect it. This report highlights action public sector agencies and bodies, such as the Victorian Government Purchasing Board, Health Purchasing Victoria and the Victorian Public Sector Commission could take to strengthen the integrity of their procurement processes, as well as suppliers’ perception of the integrity of procurement