Fraud and Corruption Prevention Policy
This policy outlines the Department of Enterprise, Investment and Trade (‘The Department’)’s approach to the prevention, identification and reporting of suspected and actual instances of fraud and corruption. The Department has a zero-tolerance approach to fraud and corruption.
This Policy applies globally to all staff anywhere the Department may undertake business. Some Australian laws may apply to your conduct outside of Australia, in addition to the operation of relevant local laws.
ARC is the Audit and Risk Committee.
Corrupt conduct is improper acts or omissions, improper use of influence or position and/or improper use of information. Corrupt conduct can include but is not limited to:
- bribery (staff must refer to the Anti-Bribery Policy)
- theft (including data and information theft);
- revenue or tax evasion
- currency violations
Fraud is when a person acts dishonestly while obtaining a benefit or causing a loss by deception or other means. For example, misuse of assets (including information).
Staff refers to all persons undertaking work for or engaged by the Department in either a paid or unpaid capacity.
The Department is committed to a ‘speak up’ culture. Annexure B sets out the processes for reporting suspected fraud and corruption.
All staff must:
- comply with this policy by refraining from engaging in fraud and corruption
- act honestly in their use of public resources and maintain the highest ethical standards
- act in accordance with the DEIT Code of Ethics and Conduct
- take practical steps to avoid or manage the risks associated with fraud and corruption in the workplace, and report all suspected cases
- act in a manner that promotes and encourages the reporting of fraud and corrupt conduct.
- must receive and deal with reports of fraud and corrupt conduct as set out in the Public Interest Disclosure Policy.
- are accountable for effectively managing fraud control and corruption prevention.
- must ensure all staff are aware of their responsibilities and this policy.
Fraud and Corruption Control Framework
The DEIT Fraud and Corruption Control Framework governs fraud and corruption prevention, detection, and response by the Department. The framework incorporates the attributes of fraud control under the stages of Planning and Resourcing; Prevention; Detection and Response, as follows:
Further details of Prevention, Detection and Response are set out below.
This Policy sets out the appropriate structures and responsibilities required for the prevention and detection of fraud and corruption.
The Department endeavours to prevent fraud and corruption by maintaining effective financial and operational controls, and by encouraging a “speak up culture” to support staff to report incidents of potential and actual fraud and corruption.
Staff must familiarise themselves with the DEIT Risk Management Framework.
All staff are required to:
- undergo pre-employment screening involving police checks, certification (for roles requiring certification) and referee checks; and
- complete our Code of Ethics and Conduct training and all other mandatory training required to understand their responsibilities under this policy.
Conflicts of interest and disclosure
A conflict of interest may arise in situations where there is a conflict between public duty and private interest. Staff must be aware of their obligations of declaring conflicts (as set out in the DEIT Code of Ethics and Conduct).
Staff who engage third parties to provide goods, services or labour to the Department are required to conduct all procurement and business relationships with honesty and fairness in accordance with this policy.
All staff are required to report any instances of suspected fraud or corruption. Staff can make reports of fraud and corruption in accordance with the Public Interest Disclosure Policy and Annexure B of this policy.
All suspected instances of fraud and/or corruption which come to the attention of a manager no matter where located, must be reported to either the Secretary, the Disclosure Coordinator, or a Disclosure Officer as set out in the Public Interest Disclosure Policy and Annexure B. Where there are reasonable grounds to suspect corruption or a criminal offence has occurred or is about to occur, the Deputy Secretary Engagement, Operations and Governance must report the matter to the appropriate external body. The Department will ensure all reported allegations of fraud and/or corruption are reviewed and dealt with appropriately.
The Department is committed to an open environment where all staff can confidently report any suspected improper conduct without fear of detrimental action. The Department endeavours to protect staff making reports from any form of detrimental action.
The Department will not tolerate detrimental action against its staff for making a report under this policy.
Internal audit systems
The Chief Risk Officer has oversight of the organisation’s risk framework and providing the necessary oversight and reporting on risk management practices within the Department.
The Department’s Chief Audit Executive oversees the Annual Internal Audit Plan that includes assessing the adequacy and effectiveness of internal controls and reporting on deficiencies and weaknesses that require corrective action.
Internal audits/reviews regularly examine samples of medium and high-risk processes across the Department to assess the adequacy of controls and to detect irregularities. Outcomes of audits/reviews are reported to the ARC.
The Department’s internal audits are reviewed by the ARC. The Deputy Secretary, Engagement, Operations & Governance will monitor the implementation of recommendations from Internal Audit to safeguard the Department against fraud and corruption.
All reports of alleged fraud and corrupt conduct will be dealt with appropriately and treated confidentially. The Department’s Director Governance, Audit & Risk will review and determine the appropriate nature and scope of any investigation to be conducted under the oversight of the Deputy Secretary, Engagement, Operations & Governance or the Secretary, including any decision to appoint an external investigator.
In most cases the Department will investigate to make findings about whether the alleged fraud or corrupt conduct occurred, who was involved, who was responsible, and whether the people involved, or the agency engaged, in serious wrongdoing.
There may be circumstances where we decide that the report should be referred to another agency, such as an integrity agency. For example, some reports concerning possible corrupt conduct may be required to be reported to the Independent Commission Against Corruption (ICAC) in accordance with section 11 of the ICAC Act 1988.
The findings of an investigation will be provided by the Director Governance, Audit & Risk to the appropriate decision-maker with authority to determine:
- what steps will be taken to address any recommendations in the findings,
- who will be responsible for ensuring any corrective action takes place.
The decision-maker will be determined on the basis of the matter under investigation, however it will generally be either the Secretary or the Deputy Secretary, Engagement Operations & Governance.
At the conclusion of the investigation, the reporter may be advised of the outcome and any corrective action that will be taken by the organisation.
Substantiated allegations of fraud and corruption, or attempted fraud and corruption, may result in disciplinary action.
Consequences for committing or attempting fraud and/or corruption may include, but are not limited to:
- repayment of misappropriated funds and other costs
- referral to the Independent Commission Against Corruption (ICAC) or prosecution agencies.
Actions of fraud and corruption may result in criminal prosecution.
A breach of this policy may lead to disciplinary action including termination of employment or engagement.
Individuals found to have committed an offence under any relevant legislation may also be subject to penalties as prescribed by the legislation, which can include imprisonment.
The Department may vary this policy from time to time as appropriate.
Next Review Date
Deputy Secretary Engagement, Operations and Governance
1 October 2023
1 October 2024
- Government Sector Employment Act 2013
- Public Interest Disclosures Act 2022
- Independent Commission Against Corruption Act 1988
- Government Sector Finance Act 2018
- Standards Australia AS8001-2021 Fraud and Corruption Control
- NSW Auditor-General Better Practice Guide Fraud Control Improvement Kit: Managing your fraud control obligations (2015)
- DEIT Code of Ethics and Conduct
- DEIT Public Interest Disclosure Policy
- NSW Procurement Policy Framework for NSW Government Agencies
Reporting Fraud and Corruption
You can make a report inside the Department to:
- the Secretary
- the Disclosure Coordinator or a Disclosure Officer set out in Annexure A of the Public Interest Disclosure Policy.
- the Ethics & Integrity Team by emailing email@example.com.
- your manager — this is the person who directly, or indirectly, supervises you. It can also be the person who you directly, or indirectly, report to. You may have more than one manager. Your manager will make sure that the report is communicated to a disclosure officer on your behalf or may accompany you while you make the report to a disclosure officer.
- the Department’s external Integrity Hotline (includes an anonymous report option). This service is provided by Core Integrity and reports can be made by:
- Phone: 1800 303 406
- Online: Use the online portal or scan the QR Code:
- Email: DEITIntegrityHotline@coreintegrity.com.au
- Post: PO Box 730, Milsons Point 1565
Where staff do not wish to use internal reporting options, reports can be made directly to the relevant integrity agency listed in Annexure B of the Public Interest Disclosure Policy.
Where relevant, a report of fraud or corruption may also be dealt with in accordance with the Public Interest Disclosure Policy as well as this policy.