Public officers, including ministers and members of Parliament, are expected to act in the best interests of Victorians, resisting attempts of improper influence by interest groups, with honesty and transparency. IBAC's Operation Richmond has exposed serious and concerning conduct by senior public officers, including ministers, that not only enabled improper influence and privileged access, but were contrary to codes of conduct and policy, creating an environment where corrupt conduct could not only have occurred, but been enabled. Operation Richmond commenced in 2018 after IBAC received allegations that between 2016 and 2018, then Premier Daniel Andrews was blackmailed by the Secretary of the United Firefighters Union, Mr. Peter Marshall, during Country Fire Authority Enterprise Bargaining Agreement or EBA negotiations. IBAC expanded the scope of Operation Richmond to include allegations relating to the negotiation of the former Metropolitan Fire Brigade EBA and the establishment of Fire Rescue Victoria. While IBAC did not find evidence of blackmail or substantiate corrupt conduct, which must be a criminal offense under our legislation, what we did find is serious and reveals a number of corruption risks that must be addressed. Some of the key concerning conduct identified in Operation Richmond includes in April 2016, the then Premier authorised then special minister of state Mr. Gavin Jennings with assistance from then deputy secretary of the department of Premier and cabinet Mr. Tony Bates to negotiate a backroom deal with the UFU without knowledge of the CFA, then emergency services minister Ms Jane Garrett, or other key stakeholders. IBAC found that the actions of the then Premier Minister Jennings and Mr. Bates over this period were contrary to government policy procedures convention and their respective codes of conduct. This undisclosed deal was then used as leverage by Mr. Marshall to extract concessions from government, gain privileged access to ministers, and exert extraordinary influence over government under the threat of industrial action and public exposure of the undisclosed deal. When the CFA Board failed to endorse the EBA, they were dismissed and a new board was appointed outside of proper procedure with members the government believed were amenable to follow the government's directions on the EBA. In 2017 and 2018, the government also filled vacant MFB board positions with members who understood the government's preferred position on the MFB EBA, which they approved in January 2019. Then during the establishment of Fire Rescue Victoria, IBAC found Minister Neville's inappropriate stakeholder management of Mr. Marshall enabled his privileged access to her; and paired with a lack of transparency, this created a risk of corrupt conduct as Mr. Marshall sought to influence the selection of the FRV Commissioner. In addition, sensitive or confidential information was shared with Mr. Marshall by an MFB board member during this period and twice by Mr. Bates in 2016. Throughout Operation Richmond, IBAC heard evidence of inappropriate behaviour by Mr. Marshall. The investigation found that the government, including the then Premier, did not take visible or effective action to address this behaviour, exposing individuals to harm, setting a poor cultural standard within the Victorian public sector, and fostering public perceptions of favouritism. IBAC found that the concerning conduct identified in Operation Richmond left the government vulnerable to significant corruption risks, including privileged access, improper influence, failures in ministerial conduct, failures by senior public servants to act impartially, and the politicisation of appointment processes for public sector boards. IBAC has made three recommendations that seek to improve clarity and accountability on the application of constitutional conventions; formalise and embed integrity standards for ministers; and strengthen awareness and understanding of ministerial obligations. These are that the Premier introduces legislation to establish a statement of values for ministers and require the publishing and periodic review of a ministerial code of conduct to be based on the statement of values. IBAC also recommends that the Premier publish a ministerial handbook that brings together existing integrity guidance and policies for ministers and their staff with new guidance on the operation of the Westminster Conventions in a Victorian context. And that the Secretary of the Department of Premier and Cabinet update training materials for ministers to include new guidance on navigating relationships with interest groups and lobbyists and on Westminster principles and conventions. There are also other reforms the government could progress to address the corruption risks identified in this investigation. This includes recommendations made to government in IBAC's special report on corruption risks associated with donations and lobbying and the Operation Daintree special report. Improving the integrity of Victoria's public sector is a role IBAC takes very seriously and these recommendations are a step towards doing just that. IBAC will monitor the action taken in response to these recommendations and to address the corruption risks identified in Operation Richmond that persist today. I encourage you to visit our website to read the report and recommendations in full.
