University of Sydney – corruption allegations concerning IT manager (Operation Citrus)

Findings of corrupt conduct

The ICAC found that Atilla "Todd" Demiralay engaged in corrupt conduct by:

• using Succuro and Succuro Recruitment Pty Ltd to recruit contractors and staff for the University of Sydney despite the conflict of interest caused by his wife's employment with Succuro and, from August 2008, by his and his wife's financial interest in Succuro Recruitment Pty Ltd

• engaging George Tsipidis, his brother-in-law, to work at the university despite the conflict of interest caused by their undisclosed family relationship

• falsely recording that he had considered other candidates when engaging a close friend, Adrian Buxton, to work at the university

• recommending that the university employ a candidate, Gerard Hunt, provided by Succuro Recruitment Pty Ltd (which resulted in the payment of a fee to the company) despite the conflict of interest caused by Mr Demiralay having an undisclosed financial interest in that company.

Recommendations for prosecutions

The Commission must seek the advice of the Director of Public Prosecutions (DPP) on whether any prosecution should be commenced. The DPP determines whether any criminal charges can be laid, and conducts all prosecutions. The Commission provides information on this website in relation to the status of prosecution recommendations and outcomes as advised by the DPP. The progress of matters is generally within the hands of the DPP. Accordingly, the Commission does not directly notify persons affected of advice received from the DPP or the progress of their matters generally.

The ICAC is of the opinion that consideration should be given to obtaining the advice of the Director of Public Prosecutions with respect to the prosecution of Atilla Demiralay and his wife, Virginia Kantarzis, for offences of giving false or misleading evidence pursuant to the Independent Commission Against Corruption Act 1988.

Mr Demiralay and Ms Kantarzis were being prosecuted for offences of giving false or misleading evidence to the Commission pursuant to section 87 of the ICAC Act. The charges were listed for hearing at the Downing Centre Local Court on 27 October 2014. On 29 October 2014, Ms Kantarzis pleaded guilty to one count of giving misleading evidence to the Commission. On 19 December 2014, she was directed to perform 180 hours of community service work. On 5 February 2015, the charges against Mr Demiralay were withdrawn by the DPP and the hearing date listed for 12 February 2015 vacated.

Recommendations for disciplinary action

As Mr Demiralay is no longer employed by the university, the Commission is not required to form an opinion as to whether a recommendation for disciplinary action to be considered should be made.

Recommendations for corruption prevention

The Commission has made seven corruption prevention recommendations to the University of Sydney as follows:

Recommendation 1

That, where possible, the University of Sydney should establish a single point of access for employment of IT contractors, using multiple C100 recruitment firms in competition.

Recommendation 2

That, where access to IT contract employment is not feasibly managed through C100 firms in competition, the University of Sydney should establish the probity and competence of alternative recruitment firms independently of the views of operational university staff. Such a process should include the conducting of background checks.

Recommendation 3

That the University of Sydney implements its proposed financial analysis framework.

Recommendation 4

That the University of Sydney's management of contract labour through recruitment suppliers be the responsibility of SydneyRecruitment or a specialist unit.

Recommendation 5

That the relevant University of Sydney policy for non-exempt general staff selection committees requires:

• the presence of an independent member on selection committees

• members of selection committees to be more senior than the position for which they are recruiting.

Recommendation 6

That the University of Sydney ensures the authority and responsibility of SydneyRecruitment is such that it is able to influence policy compliance at critical points in the recruitment process, and that it is held accountable for the exercise of that influence.

Recommendation 7

That the University of Sydney adopts an electronic approval system as part of any major enhancement of its human resources systems.

Implementation Plan

The implementation plan posted below has been provided by the University of Sydney in response to the ICAC's corruption prevention recommendations. Its appearance here is for information only and does not constitute the approval or endorsement of the plan by the Commission.

University of Sydney - Implementation plan

Progress report

The progress report posted below has been provided by the University of Sydney in response to the ICAC's corruption prevention recommendations. Its appearance here is for information only and does not constitute the approval or endorsement of the report by the Commission.

University of Sydney - Progress report

Final report

The final progress report posted below has been provided by the University of Sydney in response to the ICAC's corruption prevention recommendations. Its appearance here is for information only and does not constitute the approval or endorsement of the report by the Commission.

University of Sydney - Final Progress report