Crime and Corruption Commission warning after jail sentence for former Far North council employee
The Crime and Corruption Commission has issued a stark warning about managing conflicts of interest after two high-profile investigations resulted in jail sentences.
Cairns
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THE Crime and Corruption Commission has issued a stark warning to councils and other agencies about managing conflicts of interest after two high-profile investigations resulted in jail sentences.
The watchdog is still conducting investigations into conduct within Cairns Regional Council but has stressed all allegations “should be treated as unsubstantiated until a final outcome is reached”.
No findings have been made against any individuals from Cairns Regional Council and no charges have been laid.
It is understood the probe is finally nearing a conclusion after more than a year of documented tip-offs, closed-door interviews and raids on the council chambers and Mayor Bob Manning’s house.
It remains to be seen what steps, if any, the CCC takes next.
In the meantime, it has distributed an alert to agencies across Queensland to be vigilant about conflicts of interest affecting procurement processes.
The document points to two recent criminal prosecutions that ended with convictions and jail terms – including for a former Far North local government employee.
In one case, former Etheridge Shire Council director of engineering services Rohana Samarasekera and the director of an engineering firm were prosecuted following a CCC investigation.
Samarasekera pleaded guilty to secret commission offences in March this year in the Cairns District Court over the awarding of a contract to the company in 2013.
The court heard Samarasekera corruptly obtained about $120,000 in payments, which were made to his wife between September 2013 and December 2016, in exchange for ensuring the council entered into a contract with the engineering company.
The contract was worth just over $1 million.
In addition, the director of the company who was awarded the contract was an associate of the employee – a fact that the employee failed to disclose to the council.
Samarasekera has now been sentenced to five years’ imprisonment, suspended after 20 months, while the engineering firm director received a three-year sentence, suspended after nine months.
In another case, a former infrastructure and operations manager at Racing Queensland was sentenced to two years’ jail, wholly suspended, after pleading guilty to fraud in relation to contract procurement in five contracts awarded in 2014 and 2015 for works at several race tracks.
“As a favour to the employee’s friend and co-accused, who was bidding for the RQ work, the employee disclosed confidential information about competitors’ pricing and RQ’s budget allocation for those works,” the CCC document stated.
“Although the employee was fully aware of obligations to declare a conflict of interest, they hid the association with the contractor from RQ.”
There is no suggestion Cairns Regional Council staff or elected officials have engaged in any fraudulent or corrupt conduct.
However conflicts of interest issues have been causing headaches in recent times, culminating in an email from CEO Mica Martin to councillors last month.
“Given the recent emails and media articles a number of you have made contact with me asking if council needs to change or update any of its practices,” the email stated.
“I am seeking some legal advice on what steps, if any, council needs to take.”
The CCC has made a broad warning to public organisations all over Queensland to be eagle-eyed when it comes to procurement and conflicts of interest.
“Releasing confidential information to friends and associates to give them an advantage in a procurement process is a serious criminal offence – even if an employee gains no benefit and believes it will result in a better outcome for the agency,” it stated.
“Agencies must ensure they develop and implement a systemic approach to dealing with conflicts of interest, with a focus on identifying areas of risk and describing the kinds of conflicts of interest that are likely to occur.
“Agencies should implement accessible policies and procedures that provide clear guidance about conflicts of interest, and raise staff awareness about their obligations to fully disclose any conflict – potential, perceived or actual – including those arising from secondary employment, personal associations and other commitments.”
The CCC is not infallible, and is facing an unprecedented backlash of its own after dropping the ball on other prosecutions.
The Parliamentary Crime and Corruption Commission is currently holding investigations into the botched prosecution of seven Logan City councillors in 2019, whose charges were all dropped in April this year.
Charges of perjury, official corruption, failure to correct register of interests and misconduct in relation to public office against former Logan mayor Luke Smith remain before the court.
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