An Independent Commission Against Corruption report published on Tuesday, titled “Buy Now, Lie Later”, outlines a recently completed ICAC investigation into allegations two Transport Department officials misused government-issued purchase cards.

According to ICAC, the investigation was prompted by a Transport Department manager who was examining the purchase card records of two employees who had spent almost $400,000 on close to 1000 items over approximately three years.

“While the majority of the transactions were found to be legitimate, there were a number that appeared to be excessive and inconsistent with what ought to have been necessary for their roles,” the report states.

“On further investigation, it was revealed that the officers had: purchased duplicates of tools unnecessarily, purchased equipment that would not be required by the section, purchased equipment that would ordinarily be supplied by other areas of the Department… [and] purchased from suppliers who were not preferred suppliers.”

ICAC also found the employees provided documentation for the transactions which “did not accurately reflect the items purchased”.

Approximately 10 per cent of the 1000 items purchased “could not be accounted for”, ICAC said.

“In one example, a $1100 mobile phone was purchased (without approval) and was simply recorded as ‘communications equipment’,” the report states.

“Another purchase of over $2000 was entered into the Department’s system without any information describing it, or supplying a tax invoice or receipt.

“Manual receipts were being submitted into the system via an electronic notepad app. One manual ‘receipt’ for more than $2000 of computer hardware simply read: ‘Fake receipt to keep Pro Master happy :)’.

“Not only was the card holder acting outside of the Department’s purchase card policies and procedures, so too was the officer approving the transactions.”

ICAC said while the actions of the two public servants “certainly pointed to inappropriate conduct”, the evidence from the investigation “could not prove corruption… due to a lack of adequate record keeping in this section of the Department”.

Independent Commissioner Against Corruption Ann Vanstone made five recommendations to the Department to strengthen its purchase card policies and procedures.

This included “[reassessing] the business need for issuing employees with purchase cards” and undertaking a review of internal audit processes for purchase card transactions.

In a letter to Vanstone, Transport Department deputy CEO Judith Formston said the Department “has commenced taking steps in respect to the five recommendations”.

She said a review would be undertaken of the Department’s procurement processes, including the issuing of purchase cards and “relevant controls to flag transactions which do not meet policy and procedural requirements”.

“To assist with the above the Department is looking to engage an independent examiner to undertake an audit and to address the recommendations involving implementation of appropriate controls to the Department’s existing purchase card policies and procedures,” Formston wrote on September 29.

“The Department is committed to minimising the identified risks as thoroughly as possible.”

Formston said the ICAC’s recommendations would be “reviewed and actioned” by March 31, 2023.

Vanstone said the Department’s response to her recommendations “demonstrates a proactive commitment to minimising further misuse of purchase cards by its officers”.

“It also sets a commendable example of the steps that other agencies in the public sector could take, to their advantage,” she wrote.