ICAC evaluation into Playford Council tabled in State Parliament
ICAC has handed down its long-awaited report into Playford Council. It found serious problems which need fixing.
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Playford Council is vulnerable to corruption because of bad record keeping, outdated policies and poor procurement practices, an evaluation by ICAC has found.
In a report tabled in State Parliament, deputy commissioner Michael Riches said the council was emerging from a turbulent two years, which culminated in the sacking of former chief executive Mal Hemmerling.
Mr Riches said the termination of Mr Hemmerling’s contract last December was one of the triggers for ICAC’s decision to conduct an evaluation of the council’s policies, practices and procedures.
ICAC and the Office for Public Integrity had received 53 complaints and reports about the council between 2013 and 2018 but the highest number — 15 — were received in the months leading to Mr Hemmerling’s dismissal.
Mr Riches said the complaints and reports related to allegations of bullying and harassment, failures to declare conflicts of interest, improper recruitment and procurement practices and poor records management practices.
In his report, he said his examination of the council’s policies, practices and procedures found that while it was performing well in some areas under new chief executive Sam Green it had “a number of weaknesses that leave it susceptible to corruption, misconduct or maladministration”.
Playford particularly needed to improve its record keeping, he said. The council had not reviewed its records management policy for 13 years.
“The policy itself refers to the use of systems that have long since ceased to exist. In short, the policy is largely worthless,” he said.
Mr Riches said he was doubtful the council’s current record keeping would meet its legal obligations under state legislation.
“There is a need for the City of Playford to reconsider its approach to records management,” he said.
“Council policy is significantly outdated, electronic systems designed to store official records are poorly utilised and there is widespread misunderstanding of the role of the records management team.”
Mr Riches said senior management at the council needed to ensure there was proper record management.
“What is concerning is the general perception amongst staff that there has been little focus from executive or senior management on appropriate records management,” he said.
“Despite the council having in place a records management system there is no uniform requirement to use it and, in some cases, it would appear that management actively encourage employees to use alternatives,” he said.
Mr Riches said it “was clear to me” nobody in the organisation “including those in the executive or those responsible for overseeing records management processes, would know the whereabouts of, or be able to gain ready access to, all of the council’s official records.”
“In those circumstances I doubt the ability of the City of Playford to ensure compliance with its obligations under the State Records Act and the FOI Act,” he said.
Mr Riches the council also needed to improve its procurement practices, particularly when spending under $100,000 on individual items.
“I was told of instances where procurement policies were not complied with or were deliberately worked around, and that policy breaches were not managed,” he said.
“I was given examples where in the past, staff had engaged with suppliers verbally in circumstances where purchase orders or quotes were required but not obtained, where staff did not consult with the procurement team as required and where few records were kept of procurements.
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“Perhaps of most concern were apparent instances where procurements of more than $100,000 in value had been split into smaller parts, apparently to ensure that the procurement could be managed by a particular team or so that a formal tender was not required.”
Mr Riches said such conduct “represents a significant red flag in relation to integrity risks”.
“If it is continuing it must cease immediately and suspected instances should be investigated carefully,” he said.
Mr Riches said record keeping, recruitment and procurement practices were areas the council needed to urgently review, along with the information flow between executive management and elected members.
In a letter to ICAC, Mr Green said the council would implement all of the 21 recommendations in the report.
Playford Mayor Glenn Docherty said the council “welcomed” the evaluation by Mr Riches.
“The council found it to be a comprehensive, reasonable and well-considered process,” he said.
“The Deputy Commissioner and his team were open in their approach, enabling us to start addressing early some of the weaknesses he identified as he conducted the evaluation.”
Mr Docherty said the report’s recommendations “will further build on the processes already in place”.
He said the council had noted comments made by Mr Riches about informal gatherings.
“We were pleased that the Deputy Commissioner acknowledged the processes already in place or development that protect the integrity of the Council’s operations,” he said.