Corruption Matters - June 2022 | Issue 59
What’s Australia’s largest case of public sector fraud?
In November 2022, Jon Tuttle will be speaking at the Australian Public Sector Anti-Corruption Conference about the Corruption and Crime Commission’s investigation into former WA public servant Paul Whyte.
Provide an overview of this investigation from your perspective as deputy director of investigations at the Corruption and Crime Commission (CCC) in Western Australia.
The investigation started with a single intelligence report stating that Mr Whyte may have a gambling problem. Although of interest, there was insufficient basis to commence an investigation. Our proactive intelligence team started to look further into Mr Whyte due to his very senior position and gambling being a red flag in respect to corruption risks. Through this work, we gained a greater insight into Mr Whyte, his lifestyle and conduct.
We established that, early in his employment with the Housing Department, he was maxing his corporate credit card to the value of $50k per month but this had ceased about six years ago. Further intelligence work enabled us to get closer to Mr Whyte and his current behaviour. We learnt that he was issuing false invoices to two fictitious companies to the value of $100k per month. Due to the quantum of his offending, the matter was referred immediately to WA Police and the CCC went on to investigate further activities within the Department of Communities.
It is described as Australia’s single largest case of public sector fraud. What was your role in the investigation?
I had overall responsibility for the investigation. In the initial stages, I had to be satisfied and justify why we were putting valuable resources into an investigation which, on the face of it, was not supported by tangible evidence.
In the later stages, I had to oversee the investigation and confirm what we suspected was occurring and the amounts of money involved. Finally, I had to brief the police so they would be well placed to commence a criminal investigation into the offending and stop the criminal flow of public money.
Describe the fake invoice scheme he put in place that allowed him to syphon off $27 million in taxpayer funds.
It wasn't elaborate. Had the department utilised standard checks and balances in their procurement practices, it would have easily been uncovered.
Mr Whyte committed this fraud over 11 years. (1) In your opinion, how was he able to get away with it for so long? (2) How did he come unstuck and how did the CCC get the tip off?
Basically, the culture of the organisation allowed his behaviour to flourish. He had a lot of power and was able to dictate to others without question or a need to justify his actions. Contrary to what has been reported, there was no whistleblower. The CCC received a single report from a financial intelligence agency that he may have a gambling problem. It was their excellent intelligence and investigative work that brought his conduct into the light.
The results of anti-corruption agencies like the CCC comes into focus for the broader public after years of work and dedication by many people across a range of disciplines. Provide an account of the length of the investigation, and what went on behind the scenes to expose this corruption and make the findings.
Great intelligence work and investigative work, the use of covert and overt resources and, most importantly, the dedication and tenacity of the people involved. Without those dogged, determined and dedicated people, Mr Whyte would still have his liberty and his conduct would be continuing unchecked.
In November 2021, Mr Whyte was sentenced to 12 years in jail. What was your reaction to that announcement?
It is not my place to comment on the sentence. I am proud of the team that uncovered Mr Whyte's activities and I often reflect that Mr Whyte's department provided services to the most vulnerable members of our community and what good could have been done with over $20 million in government money. Just after the story broke, I was invited to address the department's 50 most senior officers. The sense of shock and betrayal was palpable.
APSACC is Australia’s premier anti-corruption conference. Reflecting on your experiences in this investigation, what lessons learnt would you like to direct to the delegates?
Corruption flourishes in the dark. If you get a good lead, be sure to follow it and be tenaious. Most importantly back and support your people, as it is they that deliver the results, not you, the manager.
The Australian Public Sector Anti-Corruption Conference returns to Sydney from 15 to 17 November 2022 at The Fullerton Hotel. APSACC is Australia's premier corrruption prevention forum. The 2022 program includes plenary sessions, discussion panels and workshops. Registration is now open with early bird rates available until 15 August 2022. |
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