When the National Crime and Corruption Commission (Commission) commenced operations in July 2023, the referrals flooded in, with a few notable Australian parliamentarians making headlines. Since the commencement of the NCCC what trends are we seeing emerging for the public and private sectors? This article explores that question. 

Since July 2023 the NCCC has received 3189 referrals of suspected corrupt conduct. In the three months from July 2024 the NCCC has received in excess of 600 additional referrals. It is fair to say that the Commission has had an active start in its mission to enhance integrity in Australia's public sector.
One referral was from Greens Senator Barbara Pocock referred accounting and consultancy giant PWC, after it leaked confidential government taxation information to clients. 

A short time later LNP Senator Linda Reynolds asked the Commission to investigate the circumstances surrounding a Commonwealth compensation payment to her former staffer Brittany Higgins.

The referrals have resulted in 26 corruption investigations and one individual has been charged with soliciting a secret commission. 

Importantly the Act provides that private companies, that engage with the federal agencies and public servants, federal parliamentarians, and their staff can be investigated. Private companies, advisors, consultants and contracted service providers must be aware of the NCCC provisions and comply to ensure that they do not create risk for Government and for themselves.  The following guiding principles should be considered by Government and service providers alike:

Conduct Regular Risk Assessments: Companies should maintain up-to-date risk assessments to evaluate all touchpoints with the Federal Government and related agencies. Regularly reviewing these assessments helps to determine whether existing controls are sufficient to manage corruption risks.

Strengthen Whistleblower Channels: Ensure that whistleblower mechanisms are functional, well-resourced, and accessible. A company should promote a "speak-up" culture, encouraging both employees and suppliers to report any suspected corruption or unethical practices without fear of retaliation. Update whistleblower protection policies to ensure they comply with current legislation and the NACC's guidelines. These policies should be well-publicised, easily accessible, and consistently enforced across all levels of the organization.

Raise Awareness of NACC Reforms: Keep officers, employees, and suppliers informed about the NACC reforms through clear policies, onboarding of any staff that work with Government, regular training, particularly about developments, including regarding conflict of interests, bribery and corruption training.

Revise Contracts and Clauses: Review contractual clauses, particularly those relating to subcontractors and employment contracts to ensure they address anti-corruption standards. This is especially important for anyone engaging with the Federal Government on behalf of the business.

Educate Employees and Executives: Implement regular training programs on anti-corruption laws, the NACC’s role, and whistleblower protections. Training should ensure that employees, executives, and contractors understand their rights, responsibilities, and the processes for reporting misconduct.

Zero tolerance: If you find that workers or contractors have not ben adhering to NACC requirements, service standards or obligations regarding conflict management, bribery or corruption decisive action is needed to address such conduct. 

Prepare for NACC Investigations: Companies should review internal policies and procedures for handling investigations and ensure they are equipped to respond to NACC information requests or investigations. This includes maintaining clear documentation and communication records with public agencies.

Monitor and Review Compliance: Boards should oversee frequent audits and compliance reviews to identify potential risks. These audits should focus on preventing corruption and ensuring that any identified issues are swiftly addressed.

Create Safe Reporting Mechanisms: Enhance or introduce anonymous, confidential reporting channels that allow whistleblowers to report unethical conduct safely. Protect whistleblowers from retaliation through strict enforcement of anti-reprisal policies.

Conduct Supplier Due Diligence: Ensure that suppliers, particularly those working on government-related contracts, adhere to the same anti-corruption and compliance standards expected of the company. Regularly review these relationships to mitigate risks associated with third-party misconduct.

The NCCC's enhanced whistleblower protections are an important mechanism for improving transparency and accountability across both the public and private sectors. 

For corporate boards and directors, this means not only complying with new legal obligations but also fostering a corporate culture that prioritises ethical behaviour and transparency. 

For Government, training of staff who engage with service providers around NCCC obligations is key as is regular and systematic training around conflicts of interests, risk management, confidentiality obligations, bribery and corruption standards. Clear mechanisms for raising complaints should be available and promoted. There should be zero tolerance for breach of these reasonable expectations. 

By aligning their governance practices within the public and private sectors with these standards, both Government and companies who engage with Government can reduce legal risks, protect their reputation, and contribute to a fairer business environment in Australia. 

Please contact Partners Jon Meadmore and Megan Kavanagh for further advice.