This report draws on a survey of procurement officers and state sector suppliers, stakeholder submissions, insights from reports referred to the South Australian Independent Commission Against Corruption, and findings from other integrity agencies. It provides case studies illustrating common corruption risks in public sector procurement.

Poor procurement may increase the costs of goods, services, and construction projects. Essential services may be delayed or not be delivered all at. Service quality may be reduced, putting public safety at risk. Suppliers, especially small businesses dependent on public sector work may be forced to lay off staff or close.

The report makes 18 recommendations to assist public authorities to prevent corruption in public sector procurement, and alerts public officers to red flags that may indicate potential corrupt conduct.

Key recommendations

• Public authorities conduct regular procurement audits based on the risk profile of their procurement activities.
• Public authorities prevent non-Aboriginal suppliers taking unfair advantage of schemes intended to assist Aboriginal suppliers to win public sector contracts by verifying the status of suppliers claiming Aboriginal identity.
• All public officers involved in procurement, including those with delegation authority, complete training on probity in procurement. This should include training on corruption risks in procurement, conflicts of interests, gifts, benefits and hospitality, the handling of confidential information and public officers’ reporting obligations.
• Public authorities ensure that if a participant in a procurement discloses a conflict of interests, a management plan is devised, documented, actioned and monitored.
• Public authorities ensure that internal policies include advice regarding the handling and recording of gifts, benefits and hospitality offered by suppliers in high risk functions including procurement.