Information Sheet Element 5 – Preventing fraud and corruption

This information sheet is part of a series of resources to help officials understand and implement the new Commonwealth Fraud and Corruption Control Framework.

To access other information sheets, go to Learn about the Fraud and Corruption Control Framework.

Purpose

This information sheet will help Commonwealth officials understand how to:

• design integrity into policies, programs and transformation initiatives, so that fraud and corruption are prevented upfront
• prevent fraud and corruption associated with activities, functions and programs undertaken by contractors, consultants and third-party service providers
• promote a culture of integrity
• raise fraud and corruption awareness
• articulate the value of prevention outcomes.

At a glance

Here are some of the key points discussed in this information sheet:

• prevention is the most efficient and effective way to address fraud and corruption
• effective fraud and corruption prevention strategies are built into the design of policies, programs and other initiatives
• embedding integrity into policies, programs and transformation initiatives helps to prevent fraud and corruption and increase the quality of outcomes, reduce costs and foster public trust in public institutions
• data sharing among entities within available legal frameworks can help to identify fraud and corruption that may be occurring across government programs, and can assist with suitability assessments, due diligence assessments and intelligence assessments
• entities are responsible for managing fraud and corruption associated with contractors, consultants and third-party service providers. This can be managed by suitability assessments and due diligence checks, inclusion of contract clauses regarding fraud and corruption control responsibilities, and awareness raising.

Prevention relies on:

• organisational cultures that promote integrity
• awareness of fraud and corruption risks and vulnerabilities among employees, suppliers and third parties
• robust employment screening processes
• a suite of targeted preventative controls which are proportionate to an entity’s fraud and corruption risks.

Related links

• Learn about the Fraud and Corruption Control Framework
• Commonwealth Fraud and Corruption Control Framework 2024
• Information Sheet: Element 1 – Fraud and corruption risk assessments
• Information Sheet: Element 2 – Fraud and corruption control plans
• Information Sheet: Element 3 – Reviewing control effectiveness
• Information Sheet: Element 4 – Governance and oversight
• Information Sheet: Element 6 – Detecting fraud and corruption
• Information Sheet: Element 7 – Investigation and other responses
• Information Sheet: Element 8 – Recording and reporting fraud and corruption