Recommendations for corruption prevention

The Commission has made three corruption prevention recommendations to Ausgrid as follows:

Recommendation 1

That, in the short term, Ausgrid tightens processes within the existing system for contract cable laying work orders to reduce existing corruption opportunities. In this regard, Ausgrid should focus on processes for approving variations, tightening the scope and budget for work order contracts, and reducing opportunities for individual officers to control key tasks, including the selection of contractors.

Recommendation 2

That Ausgrid improves its data management and retention systems. Data capture should, as a minimum, be able to provide Ausgrid with the capability to establish unusual expenditure patterns, improve the accuracy of estimates for work orders, capture information on environmental and site conditions to inform project design and budgeting, and help to establish cost benchmarks.

Recommendation 3

That Ausgrid considers and adopts the optimum contracting model to deliver contract cable laying work. Central to this consideration should be the alignment of Ausgrid and contractor motivations, Ausgrid's current operating environment, and the efficiency and effectiveness of any such contracting model.


Implementation Plan

The implementation plan posted below has been provided by Ausgrid in response to the ICAC's corruption prevention recommendations. It's appearance here is for information only and does not constitute the approval or endorsement of the plan by the Commission.

Implementation plan - Ausgrid

12 Month Implementation Plan

The Commission recognises that Ausgrid has made considerable headway towards the implementation of the three corruption prevention recommendations. In regards to the final recommendation, the Commission acknowledges that Ausgrid has considered an optimum contracting model, but that it remains to be adopted. The Commission accepts the Ausgrid has declared the adoption of the contracting model as imminent. Nonetheless, the Commission is of the opinion that the achievement of Recommendation 3 remains outstanding and, thus, Ausgrid has been asked to provide a further and final implementation plan in 12 months time.

12 months Implementation Plan - Ausgrid