Buying trust: Corruption risks in public sector procurement

In March 2023, the Commission began examining the risks of corruption in public sector procurement.

Public sector procurement involves public authorities acquiring goods and services through complex processes, often involving significant sums of public money and interactions between employees and suppliers. The South Australian government spends more than $11 billion on goods, services and construction works annually.

Public procurement is vulnerable to corruption. This corruption primarily revolves around the misuse of power for personal gain. This abuse can have severe consequences, including the diversion of public funds for private benefit, the establishment of corrupt contracts that persist for years, and the potential for incomplete or subpar projects.

To address the substantial corruption risks associated in public sector procurement, the Commission invited public officers and suppliers involved in public sector procurement to share their views and experiences in a confidential online survey.

The report Public Sector Procurement, published 24 August 2023, provides findings from the Survey.

The subsequent report Buying trust: Corruption risks in public sector procurement, published 4 June 2024, provides a detailed qualitative analysis of the survey, and draws on stakeholder submissions, insights from reports referred to the Commission, and findings from other integrity agencies. The report includes case studies illustrating common corruption risks in public sector procurement. It makes 18 recommendations to address weaknesses in public sector procurement and alerts public officers to red flags that may point to potential corrupt conduct.