Rise in perception of corruption in public service

In 2016-17 the Australian Public Service Commission (APS) finalised investigation of 1,720 code of conduct complaints which resulted in 1,494 breach findings. 

Sanctions were applied in the majority of breach cases by way of either official reprimand, reduction in salary or fines. Only 18.3 per cent of sanctions took the form of termination of employment and just 11.3 percent resulted in reduction in classification or reassignment of duties.

The most serious of these breaches by classification appeared to be:

287 breaches involving failure to behave honestly and with integrity;

126 breaches involving failure to use Commonwealth resources in a proper manner and for a proper purpose;

64 breaches involving improper use of: inside information, duties, status, power or authority;

50 breaches involving providing false or misleading information;

44 breaches involving conflict of interest; and

16 breaches involving failure to comply with all applicable Australian laws.

According to the Commission:

In the 2017 APS employee census, 5 per cent of respondents reported they had witnessed another employee engaging in behaviour they considered to be corrupt. 

Of that 5 per cent:

1. Sixty-four per cent of those respondents reported that they had witnessed cronyism.
2. Twenty-six reported that they had witnessed nepotism in the workplace.
3. Twenty-one per cent reported that they had witnessed ‘green-lighting’, that is making official decisions that improperly favour a person or company, or disadvantage another.

The Guardian on 10 January 2018 reported this as representing a significant increase from the 2.6% who witnessed corruption in 2013-14 and the 3.6% of respondents in 2014-15.

The Australia Institute, 10 January 2018:

Corruption’s $72.3 billion hit to GDP

New research released today by the Australia Institute estimates the effects of rising perception of corruption in Australia since 2012 could have reduced Australia’s GDP by $72.3 billion, or 4%.

[Full report - see PDF below]

“Since 2012 Australia has slid from 7th to 13th on Transparency International’s Corruption Perception Index (CPI), with index score declining from 85 to 79,” said Rod Campbell, Australia Institute Director of Research and co-author of the report.

“Economic analysis estimates each point decline in this score translates into a reduction in GDP per capita of $486. Extrapolating across Australia’s population, our GDP could have been $72.3 billion higher this year had we maintained our 2012 reputation for minimal corruption.

“This is in line with World Economic Forum estimates that corruption costs 5% of GDP worldwide.

“The economic impacts of corruption are well-known. Business costs increase, capital is not allocated efficiency and inequality worsens.

“Australia needs policies to address this threat to our economy.

“A federal ICAC with teeth is needed to increase public trust and tackle the perception of corruption in Australia.

“The perception of corruption is on the rise, the number of public servants who have witnessed corrupt behaviour is on the rise and public trust in federal parliament is at an all-time low.

As well as the obvious democratic cost, corruption and the perception of corruption also costs our economy.

“Not only does corruption cost business, businesses do not want to operate in countries where there is a perception of corruption.”

“This research shows that the business community also has a stake in perceptions of corruption and should be supporting calls for a federal ICAC,” Campbell said.

Type of Publication: 

Media Releases

Section: 

Economy

Government and Accountability

Download Publication: 

 P381 Costs of corruption FINAL.pdf

Author: 

The Australia Institute

Posted on:

10 January 2018