Corruption Threatens Local Councils Ahead of Victoria’s October Elections: Uncovering the Risks in Wyndham City and Beyond

Given the responsibilities and resources entrusted to councils, it is vital for them to develop, implement, and maintain strong integrity frameworks. Continuous improvement in identifying and preventing corrupt conduct is especially important as the October local council elections approach, where communities across Victoria will elect new councillors for a four-year term.

IBAC plays a key role in preventing corruption by equipping public sector agencies with the information and resources necessary to build resistance to corruption. Recently, IBAC held regional forums for local government councillors and staff in preparation for the elections. Enhancing awareness of corruption risks in local government is critical for achieving fair and effective administration outcomes and remains a top priority for IBAC.

Corruption in local government has significant consequences; it erodes public trust and jeopardises the delivery of essential programs and services. Unfortunately, governance failures in councils have been a recurring issue in recent years. When these failures lead to investigations, monitoring, or even the dismissal of a council, the community bears the cost and disruption to effective representation.

Common corruption risks in local government include the misuse of position, conflicts of interest, improper use of public resources, cronyism or nepotism in recruitment practices, improper actions in licensing and regulation, and procurement favouritism or fraud, which continues to be a top risk area.

IBAC’s role in preventing corruption involves receiving complaints and information about corrupt or improper conduct, then identifying, investigating, and exposing that conduct. Complaints and information come from various sources, including community members, local government employees, government contractors, and referrals from other integrity agencies. Even when IBAC does not investigate a specific matter, the information helps identify potential integrity risks.

Operation Sandon is one of IBAC’s most significant investigations into local government, with a special report tabled in Parliament in July 2023. This investigation focused on allegations of corrupt conduct involving councillors and property developers in the City of Casey. It revealed how the manipulation of council governance processes, donations, and lobbying improperly influenced council decisions and posed risks of improper influence at the state government level. The investigation uncovered a decade-long effort by a developer and planning consultant to influence councillors to secure favourable decisions. This conduct thrived in an environment where poor councillor behaviour went unchecked, council decisions were manipulated, and the acceptance of undeclared donations became normalised.

Mitigating corruption risks in local government involves learning key lessons from Operation Sandon. An organisational culture of integrity that genuinely supports and encourages people to speak up is vital in exposing and preventing public sector corruption. There needs to be a clear, well-communicated process for employees and councillors on how to report corruption or misconduct. Building confidence in reporting wrongdoing is essential, ensuring that staff feel safe and encouraged to speak up. Awareness of policies and procedures among staff and councillors is crucial as the first line of defence against potential corruption. These policies must be up to date, endorsed, and well communicated within the organisation. Effective leadership is key, with councillors and executives expected to lead by example and model appropriate behaviours.

While preventing corruption is a core function of IBAC, everyone has a role in ensuring that councillors and councils work in the best interests of the entire municipality. It is important for the community to engage and carefully consider the merits of candidates running for office. Monitoring campaign activities to ensure that council resources or information are not misused and that candidates conduct themselves in line with the values expected of a council is essential. Every vote is a powerful tool against corruption.

Reporting suspected corruption or improper conduct is fundamental to the effectiveness of IBAC’s prevention activities. Anyone can file a complaint with IBAC. For those wishing to report suspected corruption or misconduct in the public sector and Victoria Police, more information can be found at ibac.vic.gov.au/report, with the option to remain anonymous.

For more information on which integrity agency to approach regarding issues and suspected wrongdoing within council matters, councillors, and local government officials in Victoria, visit ibac.vic.gov.au/councilcomplaints.