A conflict of interest may occur when there is a real or perceived conflict between private interests and public duty. Undeclared conflicts of interest present a significant fraud risk within local government. Mismanagement of conflicts of interest can damage a council’s reputation and ability to deliver services.
In 2016–17 the Crime and Corruption Commission (CCC) examined how 13 councils had dealt with allegations of conflicts of interest and the adequacy of their conflict of interest systems.
In October 2017, the CCC released its report about ‘Managing and responding to conflicts of interest involving council employees’. It recommended 10 councils implement an overarching framework to enable them to apply a coordinated approach to identify, manage and monitor conflicts of interest.