Common corruption risks in local government

Corruption comes in all different shapes and sizes. One of the most common examples involves actions taken to gain personal benefits from positions of entrusted power. Addressing this issue requires a collaborative effort, as no single agency can single-handedly prevent or combat every instance of abuse of entrusted power for personal gain. The Crime and Corruption Act 2001 recognises that reducing corruption, promoting integrity, and maintaining high employee standards are the shared responsibility of all public sector agencies.

Examples of corrupt behaviour include:

• undeclared or inadequately managed conflicts of interest
• nepotism or favouritism to achieve an improper purpose
• accepting bribes, gifts, or other benefits in exchange for a favourable outcome
• misappropriation of public resources or funds
• unauthorised release of confidential information or falsification of records to cause a benefit or detriment to a particular individual or organisation
• perceived or actual bias in relation to public sector agencies’ and public sector officers’ decisions.

Insights into corruption complaints 

The types of complaints commonly received by the CCC about councillors and mayors has remained consistent over time.  

1.) Misuse of authority

Misuse of authority involves using your position as a councillor to exert undue influence or control over council employees or resources for inappropriate purposes. 

For the conduct of a councillor to amount to corrupt conduct, it must also amount to a criminal offence. Criminal offences, such as fraud or misappropriation, are contained in the Queensland Criminal Code. However, offence provisions can also be found in other legislation including, for example, the Local Government Act 2009, the Public Interest Disclosure Act 2010  and the Public Records Act 2002.

Examples include: 

• providing confidential council documents about a tender process to a friend to assist them in lodging a more favourable tender offer.
• insisting that staff work on your political campaign during office hours using council resources.
• intimidating or threatening a council officer to cause them to make a certain decision on a planning application lodged by a person who donated to your political campaign.

Misuse of authority falls into two categories of alleged conduct:

Misuse of authority to benefit others 

This type of conduct involves using your position to give an unfair advantage to someone else. 

Examples include using influence to have a friend’s business selected for a council contract without going through a fair tender process; or pushing for zoning changes that benefit a developer who is a major donor to your campaign. 

It is also important that councillors do not seek to influence recruitment or procurement decisions in any capacity. For example, decisions relating to employing or promoting council staff or administrative functions, unless they have an appropriate delegation to do so (for example, to employ a CEO).

Misuse of authority to benefit self 

This type of conduct involves using your position to gain personal benefits. Examples include using council resources, such as personal use of vehicles and council equipment; taking office supplies for a private business; manipulating council decisions to increase the value of personal real estate holdings; or demanding free or discounted services from businesses that have contracts with the council.

2.) Fraud, misappropriation, or unauthorised use of resources

Fraud involves deception to gain an unfair advantage, often financial. Examples include:

• submitting false claims for travel expenses
• forging documents to divert council funds into a personal bank account
• creating fake invoices for services not provided and authorising payments to themselves or their associates.

Misappropriation or unauthorised use of resources involves the misuse of council resources and entitlements by elected officials. 

While councillors may be eligible for various entitlements and remunerations, they can only claim expenses and facilities explicitly provided for in their council’s relevant policy. 

It’s important to adhere to the recordkeeping and claims procedures outlined in the policy and to keep evidence of expenditure, such as receipts.

Reasonable expenses incurred by councillors in the discharge of their duties and responsibilities may include: 

• travel allowances
• meal allowances
• accommodation allowances. 

Claims for reimbursement that exceed actual expenses or are for political or private purposes unrelated to council business are not acceptable and may constitute fraud.

Examples include:

• claiming a travel allowance to visit a friend
• claiming allowances for meals already covered by a conference registration
• claiming the cost of equipment retained for private use
• billing repairs of private equipment to the council
• claiming expenses not incurred or incurred on private business
• claiming the costs of election advertising or political mail-outs as council-related expenses.

3.) Failure of duty 

Failure to comply with legal obligations imposed on councillors, where that failure amounts to an offence under relevant legislation, could amount to corrupt conduct. 

Examples include failing to declare conflicts of interest during a council meeting where a decision is made about a contract involving a family member; or not updating your councillor register of interests accurately. 

4.) Misuse of information

Misuse of information involves the unauthorised access to, or mishandling of, confidential information by public officials or officers.

For misuse of information by a councillor to amount to corrupt conduct, it must also involve a criminal offence. 

Examples include falsifying or disclosing official information to provide a benefit of cause a detriment to a person or organisation, or accessing information on a computer system without authority.