Mastering Probity in practice

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By Sonali Cordeiro, Senior Advisor - Probity and Assurance & Procurement Office

Article 2 of 3 in the Probity Series 

Introduction 

In the first article in this series, we explored the foundations of probity and the powerful precedent set by Hughes Aircraft Systems v Airservices Australia. We examined how procedural fairness is not only a principle of good public sector governance, but also a legally enforceable obligation. 

In this second article, we turn our focus to two principles that are tightly intertwined: conflict of interest and confidentiality. Together they form the ethical backbone of integrity in decision-making. When either is neglected, the entire procurement process can be compromised and the outcome challenged. 

Through a real-world case study, involving Racing Queensland, we’ll explore how a failure to declare a personal relationship, and protective sensitive information, led to serious legal, organisational, individual and reputational consequences. We’ll also provide practical strategies to help public sector agencies uphold integrity and fairness in their procurement processes. 

Understanding conflicts of interest 

A conflict of interest occurs when a person’s private interests - financial, personal, or professional - could improperly influence, or appear to influence, their official duties and responsibilities. These can be: 

• Actual: A direct conflict exists.
• Perceived: It looks like there may be a conflict, even if none exists.
• Potential: A conflict may arise in future, depending on circumstances. 

In procurement, even the perception of bias or unfairness can undermine trust in the process and expose the agency to legal or reputational risks. That’s why early identification, disclosure, and effective management are critical. 

Case Study: Racing Queensland – breach of probity through concealed conflicts 

A former Infrastructure and Operations Manager at Racing Queensland (RQ) was investigated by the Queensland Crime and Corruption Commission (CCC) and charged with fraud and misconduct in public office. Over an 18-month period, the employee was responsible for managing tenders for five contracts - while secretly assisting a close friend who was bidding for the work. 
 
The employee disclosed confidential information - including competitor pricing and internal budget details - to their friend to improve their chances of winning. Despite being aware of their obligation to declare any conflict of interest, they failed to do so.  

Although there was no evidence of personal financial gain, the breach of confidentiality and undisclosed relationship compromised the integrity of the procurement process. 

Outcome

The employee pleaded guilty to fraud and was sentenced to two years’ imprisonment, wholly suspended for three years. The matter caused significant reputational damage to Racing Queensland, leading to internal reforms. 

Key Lessons Learned 

This case offers clear insights into how conflicts of interest, if unmanaged, can unravel public trust and organisational integrity: 

• It’s essential for agencies to have strong controls and oversight in place to identify and manage conflicts of interest during procurement. 
• Sharing confidential information to benefit friends and associates is a serious criminal offence regardless of personal gain. 
• Failing to declare and manage conflicts of interest can lead to serious consequences.  
• Clear frameworks and regular staff education are crucial to ensure employees understand and meet their obligations to disclose all forms of conflict – actual, perceived or potential. 

Organisational Safeguards 

Racing Queensland’s experience reflects a broader truth: conflicts of interest are not wrong and can be common in the public sector. However, conflicts of interest can be manageable when organisations have the right controls in place. 

Organisations should: 

• Implement and regularly review a conflict-of-interest policy.
• Require staff and panel members to declare conflicts early.
• Develop conflict management plans using the six R’s: Register, Restrict, Recruit, Remove, Relinquish, Resign.
• Ensure panel members sign confidentiality declarations.
• Provide regular training to help staff recognise and manage conflicts. 

Practical tips for managing conflicts in procurement

• Don’t assume people know what a conflict is – staff awareness and training sessions, using training scenarios.
• Make disclosure simple – online forms or confidential processes.
• Keep conflict registers updated and reviewed regularly.
• Follow through – recording a conflict isn’t enough; manage it.
• Embed probity early in the procurement planning process. 

Practical tips for managing confidentiality

• Limit access to confidential information – only those who need it should have it.
• Require all panel members and relevant staff to sign confidentiality agreements.
• Require all project and panel members to keep all written and recorded information under their control, securely stored and labelled ‘confidential’, particularly information at home offices and when transported in vehicles.
• Conduct regular reminders – reinforce obligations throughout the procurement lifecycle.
• Establish clear breach protocols – ensure staff know how to report and respond to any actual or suspected breaches. 

Reinforcing themes from article 1 

Just as Hughes Aircraft Systems v Airservices Australia reminded us of the legal enforceability of fair process, the Racing Queensland case highlights that even small lapses in judgment can have major consequences. Probity isn’t just about protecting contracts—it’s about protecting confidence in government decision-making. 

Looking ahead: fairness, evaluation, and closing the loop 

In Article 3, we’ll bring the series to a close by examining fairness, transparency and accountability in the evaluation process through two “Wild West” council case studies. We’ll explore how poor documentation and consultant involvement almost derailed tender outcomes - and how organisations can ensure equity and process integrity from start to finish.