In June 2023, the Joint Committee of Public Accounts and Audit adopted an inquiry into probity and ethics in the Australian Public Sector, with a view to examining whether there are systemic factors contributing to poor ethical behaviour in government agencies, and identifying opportunities to strengthen government integrity and accountability.

The five audit reports that formed the basis for this inquiry highlighted different aspects of probity and ethics in the Australian public sector:

• the Artbank report dealt with procurement practices in the broader context of program administration
• the report on the Community Health and Hospitals Program (CHHP) studied grant management
• the financial regulator reports examined probity management.

This report deals in separate chapters (chapters 2 and 3) with procurement and grants, which involve an examination of aspects of the audit reports relating to Artbank and CHHP respectively. Chapter 4 examines integrity frameworks and the probity assurance practices of the five entities and discusses whether an integrity framework approach can provide the accountable authority with confidence that officers are acting with probity and ethically. Chapter 5 discusses culture and accountability. In the final chapter, the Committee draws its conclusions and makes 10 recommendations.

Ultimately, as is discussed in chapter six, the Committee finds that the key to ensuring the public sector acts with probity and integrity is through the interrelationship of frameworks, culture and accountability, drawn together with the ‘golden thread’ of ethical leadership.

Key recommendations:

• The Committee recommends the Department of Finance issues guidance that makes clear to public officials that if they breach finance law, suggesting there was no malice or personal gain is not sufficient to fulfil their obligation under the Public Governance, Performance and Accountability Act 2013 to act honestly, in good faith, and for a proper purpose.
• The Committee recommends the APS Employee Census be augmented with questions asking officers of their level of confidence that agencies’ assessments, advice and decisions on issues such as procurement, grants, regulatory actions, and so on, comply with both the letter and intent of legislative and regulatory frameworks.
• The Committee recommends the Department of Finance and the Australian Public Service Commission each develop an approach, including robust metrics, to provide reasonable assurance that the policy frameworks they administer are effective. An update is to be provided to the Committee within six months, including timelines to complete this work.