West Australia’s corruption watchdog wants its jurisdiction to be expanded to cover public sector contractors after finding serious corruption within the Department of Community Services.

In a report tabled this week, the state’s Crime and Corruption Commission (CCC) found a career public servant and a contractor within the department directed more than $7million worth of work to accountants Grant Thornton and commercial law firm Minter Ellison between 2012 and 2020.

The pair received overseas and interstate tickets, corporate box seats at sporting events and high-end hospitality from the two companies.

The commission found serious misconduct in the case of the employee, Kerry Ravi, but said it wasn’t able find the same in relation to the contractor, Maria Irdi, because she was engaged via consulting and labour hire firms.

The Commission has recommended that its jurisdiction be expanded over people who work within the public sector as contractors but perform work ordinarily done by employees.

WA CCC

“The Commission is unable to form an opinion of serious misconduct in relation to Ms Irdi’s conduct because she was not technically a ‘public officer’, although she worked in the Department from 2012 to 2020,” the report says.

“The Commission has recommended that its jurisdiction be expanded over people who work within the public sector as contractors but perform work ordinarily done by employees.”

Benefits

Mrs Ravi, a long-term employee, and Ms Irdi ran the department’s Value for Money Efficiency Project for eight years, despite what the commission found were ‘deficiencies’ in relevant knowledge and experience.

The pair, who were responsible for allocating GST specialty consulting work, directed $2.1 million in consulting work to Grant Thornton and $5.1 million worth of work to Minter Ellison.

The two women received benefits including hospitality at high-end Perth restaurants, alcohol, corporate box football and tennis tickets, tickets to international basketball games, interstate flights, expensive glassware and spa vouchers, none of which were declared.

There should be appropriate mechanisms in place to ensure the work performed and the conduct of the contractors adheres to the same standards of propriety required of all public officers.

WA CCC

The inquiry found “referral of work was presented as a personal favour. It was not the result of impartial competition (and) Mrs Ravi and Ms Irdi breached procurement policy in ways that favoured the two firms.”

The Commission found Mrs Ravi engaged in serious misconduct over a number of years and used her position and control over consulting work to corruptly gain benefits for herself, as well as a job for a family manner at Grant Thornton.

Mrs Ravi knowingly participated in Ms Irdi’s manipulation of the appointment of Grant Thornton to a department of Communities legal panel, the report said, and Mrs Ravi also manipulated DoC tender processes to keep Ms Irdi working for the department.

Mrs Ravi and Ms Irdi got their positions on the VFM Project through former DoC executive Paul Whyte, who was sentenced to 12 years jail in 2021 for misappropriating more than $22 million from DoC.

Mrs Ravi was Whyte’s executive assistant at DoC between 2008 and 2009.

Ms Irdi previously worked at Grant Thornton.

Insufficient oversight of contractors

The CCC warns there is a serious risk of misconduct in the public sector without adequate oversight of contractors embedded in public agencies on rolling short term contracts.

“The fees paid to embedded contractors are public monies, and as such, there should be appropriate mechanisms in place to ensure the work performed and the conduct of the contractors adheres to the same standards of propriety required of all public officers,” it says

DoC says it has taken action to reduce the risks identified in the investigation, including establishing a corruption prevention unit and reviewing integrity policies.

The report says both Grant Thornton and Minter Ellison have conducted investigations which have resulted in “certain personnel ceasing to work at those firms”.

Grant Thornton has introduced training and protocols for partners dealing with government.

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