Public authorities – Corruption allegations that staff from a number of local councils and other authorities accepted secret benefits from suppliers and that staff from two local councils facilitated payment of false invoices from suppliers (Operation Jarek)

The ICAC investigated allegations that staff from a number of local councils and other authorities engaged in corrupt conduct by accepting gift vouchers and other gifts from suppliers as an inducement to continue placing orders with their companies or as a reward for placing orders with the companies. The ICAC also investigated allegations that staff from two local councils engaged in corrupt conduct in relation to false invoices to those two councils.

In its report on the investigation, made public on 29 October 2012, the Commission finds that 22 employees or former employees of 14 local councils and another public authority in NSW engaged in corrupt conduct by accepting gift vouchers and other gifts from suppliers as an inducement to continue placing orders with their companies or as a reward for placing orders with the companies. Fifteen staff from four supplier companies were also found to have engaged in corrupt conduct through their involvement in offering these gifts.

The ICAC also finds that two former storepeople, Geoffrey Hadley of Bathurst Regional Council and Kerry Smith of Yass Valley Council, and three suppliers engaged in corrupt conduct in relation to false invoices issued to those two councils in return for cash kickbacks. Under this scheme, Mr Hadley and Mr Smith received combined corrupt payments in excess of $323,000.

The Commission has made 15 corruption recommendations to all councils in NSW, as it is evident that the conduct uncovered during this investigation is systemic and all councils should take action to mitigate these risks.

Investigation reports Investigation reports
Investigation into allegations that staff from a number of local councils and other public authorities accepted secret benefits from suppliers (Operation Jarek)(October 2012) View full report
Findings of corrupt conduct Findings of corrupt conduct
Findings of corrupt conduct View findings
Recommendations for prosecutions Recommendations for prosecutions
Recommendations for prosecutions View recommendations
Recommendations for disciplinary action Recommendations for disciplinary action
Recommendations for disciplinary action View recommendations
Recommendations for corruption prevention Recommendations for corruption prevention
Recommendations for corruption prevention View recommendations
Transcripts Transcripts
View all transcripts associated with this investigation View transcripts
Public Notices, Media Releases and Fact Sheets Public Notices, Media Releases and Fact Sheets
ICAC conducts state-wide council talks to share lessons from Operation Jarek investigation View media release
ICAC finds 41 public officials and suppliers corrupt View media release
MEDIA ALERT - ICAC public inquiry to examine alleged fraud up to $1.5m concerning Bathurst and Yass Valley Councils View media release
Public inquiry View public notice
GoogleNews