A recently completed review of management practices of agencies within the portfolio of the Minister for Urban Affairs and Planning, and Minister for Housing identified situations where individuals had been contracted as companies to perform the duties of senior executives.

Under these arrangements, an individual senior executive established a company and the agency entered into a contract with the company for the provision of services, ie, performance of the duties of a senior executive, with the contact providing for a rate of payment higher than the appropriate salary for a member of the Senior Executive Service (SES) performing the same duties.

These arrangements are totally unacceptable to the Government. They breach Government policy on the SES, and are contrary to the Public Sector Management Act and the Public Finance and Audit Act.

The Premier has directed that an audit be conducted of all public agencies to identify any further instances of such unacceptable practices.

Accordingly, I request your advice by 21 December 1995 of whether any senior executive roles in your agency are being performed under arrangements along the lines of those described in this Circular. Nil returns are required. If such arrangements exist in your agency, your advice should include full details for each instance (in confidence) of the person engaged in this way, the senior executive role involved and a copy of the contract.

This audit covers all public agencies, including departments, statutory authorities and state owned corporations.

KEN CRIPPS
Commissioner

Date: 8 December 1995