Victorian IBAC silent on $800k payouts

Victoria’s IBAC made almost $800,000 in taxpayer-funded payouts to staff at the same time as the agency lobbied for more public funding.

Former IBAC commissioner Robert Redlich. Picture: AAP

Victoria’s anti-corruption watchdog made almost $800,000 in taxpayer-funded payouts to staff, including a rare ex gratia payment, at the same time as the agency lobbied for more public funding.

The Independent Broad-based Anti-corruption Commission is keeping details of the six-figure bill secret and refusing to explain how many staff pocketed the payouts and the circumstances around the unusual ex gratia payment.

IBAC’s annual report reveals a $129,000 ex gratia payment was made in 2021 to an employee, while termination benefits of $548,000 were dished out that year to an undisclosed number of staff. Another termination payout of $122,000 was made in 2022.

The payments are buried in IBAC’s 2022 annual report and while no specific details are revealed, the $129,000 payment was described as an “employment termination payment”, suggesting it was made to resolve a legal dispute with a staff member.

“Ex gratia expenses are the voluntary payments of money or other non-monetary benefit (for example, a write-off) that is not made either to acquire goods, services or other benefits for the entity or to meet a legal liability, or settle or resolve a possible legal liability of or claim against the entity,” the annual report states.

IBAC failed to answer detailed questions from The Australian on Wednesday about the $129,000 payment relating to whether it commissioned independent legal advice, what internal guidelines governed the process and payment, whether the Victorian Inspectorate – which monitors the performance of IBAC – was informed, if the employee dropped legal action as part of the deal and if a confidentiality clause was attached to the payment.

Instead, the agency released this broad statement: “IBAC’s ex gratia payments are paid in very limited circumstances after careful consideration of all relevant obligations.”

The IBAC annual report does not reveal how many staff shared in the $670,000 “termination benefits” over the past two years, and simply states: “Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts an offer of benefits in exchange for the termination of employment.

“Termination benefits are recognised when IBAC is either demonstrably committed to terminating the employment of current employees according to a detailed formal plan which has no possibility of withdrawal, or providing termination benefits because of an offer … to encourage voluntary redundancy.”

Responding to further questions from The Australian, IBAC said the termination payments were in line with the Victorian public service enterprise agreement and employment contracts.

Former IBAC commissioner Robert Redlich, who retired as the state’s chief corruption fighter at the end of last year, has waged a campaign over the past two years for more funding and for that funding model to be independent of the government of the day.

“As commissioner, it is important that I advocate to ensure the agency has the powers and resource ... to fulfil its legislative obligations,” he states in the report.

IBAC’s report confirms its funding increased by more than $10m in 2022 to $53.598m. About $35m of the budget went on employee expenses. And despite the additional funding, it recorded a $3.45m operating loss for the year.

IBAC’s report reveals the agency received more than 3700 complaints about potential corrupt activity, a 30 per cent rise on the previous year. Thirty investigations and preliminary inquiries were launched into allegations of serious public sector corruption and police misconduct.