P1995-61 Engagement of Companies

I refer to PEO Circular No. 1995-53 concerning an audit of public agencies to identify instances of companies being engaged to perform the duties of senior executives.

While the audit has not been completed, two types of situation have been identified:

• an individual who is employed to fill a vacancy sets up a company, and the company is engaged to provide services involving the performance of the duties the individual was recruited to perform; and
• a company is engaged to provide services involving the performance of the duties of a public employee.

The Premier has directed that action be taken immediately to prevent any recurrence of the engagement of companies for the provision of services involving the performance of duties of public employees. This principle applies particularly in relation to the duties of senior executives, but should also be observed in relation to non-SES arrangements.

To avoid any misuse of delegated authority regarding the engagement of companies, delegations by Ministers and CEOs which permit the engagement of companies to provide services involving the performance of duties of public employees are to be withdrawn.

Ministers are not to approve engagements of these types and are accountable for ensuring that such engagements are not approved under delegation. The effectiveness of these arrangements will be addressed in CEO performance reviews.

KEN CRIPPS
Commissioner

Date: 28 December 1995