Media Releases 2011

Yarra commits to leading practice in fraud and corruption control

17 February 2011

Council has accepted all recommendations by independent consultants Ernst & Young following their assessment of Yarra’s fraud and corruption control procedures.

Last November, the CEO of Yarra, Dr Andi Diamond, voluntarily initiated the assessment after police announced investigations into bribery allegations relating to illegal brothels across several Melbourne municipalities, including Yarra.

She asked Ernst & Young to examine general fraud and corruption control measures and the allegations of potential employee impropriety relating to the police investigations at Yarra.

“I want to ensure Yarra develops the most robust system it can against Fraud and Corruption,” Dr Diamond said.

“Restrictions related to ongoing police investigations made it difficult for Ernst & Young to reach final conclusions on the alleged impropriety. However, they did recommend general administrative and human resources improvements, which we will adopt.

“It is apparent, however, that no specific improvement of Council’s practices would have necessarily prevented the alleged improprieties from occurring.

“We will continue to monitor police investigations and review our practices as required.”

Ernst & Young assessed Yarra against leading practice guidelines for all industries described in Australian Standard for Fraud and Corruption Control AS8001-2008, and the Australian Standard for Organizational Codes of Conduct AS8002-2003.

Yarra accepted and will adopt all six Fraud and Corruption recommendations and all four Alleged Impropriety assessment recommendations, and all suggestions for improvements of policies, procedures and practices, Dr Diamond said.

Yarra will also voluntarily make the leading practice expressed in AS8001 and AS8002 the minimum standard for Yarra's policy, procedures and practices.

Dr Diamond said: “I want to assure our community that Yarra is committed to applying the most robust Fraud and Corruption controls. That is why I initiated the Ernst & Young assessments, and why I recommended we implement all recommendations and suggested improvements to make the leading national standards our minimum standard.”

Ernst & Young produced the reports in confidence and the full reports were provided to Council in the regular Council Confidential Meeting.


For media enquiries about this issue, please contact:
Jessica Matrakis
Communications Assistant
9205 5144


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