The NSW Independent Commission Against Corruption (ICAC) are currently holding a public inquiry into the conduct of the NSW School Infrastructure department and its leader, Anthony Manning.
Allegations have been made that the agency subverted recruitment practices, engaged friends as contractors on very lucrative arrangements, improperly awarded contracts, maintained poor financial reporting arrangements, had projects with significant cost overruns, as well as the bullying of staff including whistleblowers. There have been allegations of conflicts of interest, corruption, mismanagement and the mishandling of confidential information, where complaints were lodged & issues raised over a period of time that were not addressed or acted upon.
This summarised is a corporate governance mess, which has left a trail of fallout across the organisation, with significant reputational damage that reflects poorly on the NSW Department of Education.
What is Governance?
The definition of “governance” varies and there is no one globally applicable definition. It is usually summarised, based on the OECD principles, as the processes by which organisations are directed, controlled and held to account. It encompasses and includes:
- Stewardship – making decisions in the best interest of all stakeholders
- Transparency – ensuring objectives & performance is communicated effectively
- Accountability – setting and maintaining performance & compliance benchmarks
- Integrity – having ethical standards for the organisation
- Risk Management – understanding & managing risks to the organisation in pursuit of its objectives
Common Governance Issues
Common issues can include:
- Lack of independent oversight
- Inadequate risk management
- Conflicts of Interest
- Failure to hold management to account
- Lack of transparency in decision making
- Weak compliance standards
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