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Exclusive: An investigation into corruption within the federal parliament’s bureaucratic system has expanded, leading to several public servants being instructed to step aside. This inquiry is scrutinizing a substantial exit payment made to a high-ranking executive.
9News has learned that seven bureaucrats, both senior and mid-level, are under a separate probe concerning missing documents and the proper calculation of a $315,000 payment.
The Department of Parliamentary Services (DPS) underwent a search by the National Anti-Corruption Commission last October. Shortly after, Rob Stefanic, its Secretary, took a leave of absence with pay.
On December 17, he was sacked by his bosses, Senate President Sue Lines and the Speaker of the House of Representatives Milton Dick.
“The Presiding Officers acted quickly. Trust and confidence were lost, leading to his dismissal,” Lines shared during a parliamentary committee meeting on March 27, just before the federal election was announced by Prime Minister Anthony Albanese.
Stefanic had a relationship with his deputy secretary Cate Saunders, who was seconded to Services Australia for six months in April 2023.
She was given a $315,000 “incentive to retire payment” later that year to leave the Australian Public Service.
Liberal Senator Jane Hume and ACT independent Senator David Pocock, who have often questioned DPS officials about their practices, criticized the department for its lack of transparency.
“Unfortunately the Department of Parliamentary Services has become a Department of Mystery,” Hume said.
“This is a department that runs this building.
“It runs our security, it runs the Parliamentary Library, it runs Hansard and broadcasting.
“It has really important functions. It underpins our democracy, but it’s so opaque.”
Pocock said he received more internal complaints about DPS than any other government department or agency.
“It’s deeply troubling that our National Anti-Corruption Commission has to investigate the department responsible for maintaining our democracy, running parliament, and supporting its members,” he remarked.
“There’s a very high threshold to be investigated by the NACC and so some serious things have gone wrong, and we know that there’s ongoing investigations.
“I would love to see more transparency about what the investigations are – I think it is in the public interest, and that’s how you change culture.”
The government appointed former NACC deputy commissioner Jaala Hinchcliffe as acting secretary of the DPS last year, formally making her DPS secretary in March.
Hinchcliffe, who was also integrity commissioner for the Australian Commission for Law Enforcement Integrity, ordered an independent “fact-finding investigation” into the incentive to retire payment by senior barrister Dr Fiona Roughley, including the role of DPS in the process, whether it was calculated appropriately and whether any conduct by DPS officials may be subject of referrals for further investigation.
Roughley made seven recommendations, which have led to DPS changing its record-keeping and management of conflicts of interest.
The way Saunders’ exit payment was calculated is under further scrutiny.
Of the seven DPS public servants asked to go on indefinite leave, 9News understands that two of them are senior ranking.
An organisational chart for the DPS, which was on the parliamentary website as recently as last week, showed that 11 of the department’s top 24 positions were filled by employees who were “acting”.
DPS told 9News by email that the chart was “outdated”, attaching an updated organisational chart which revealed a recent restructure of the higher echelons of the department.
“The number of acting SES officers has reduced as DPS has progressed several competitive recruitment rounds and accessed whole-of-government competitive recruitment lists from other recruitment processes to fill vacant positions on a permanent basis,” the department said in a statement.
“We have also welcomed SES officers on secondment from other agencies to backfill officers currently on leave.”
But the DPS declined to explain why some senior staff were on extended leave.
“DPS does not comment on the individual leave arrangements (including duration and reason for leave) in place for any officers,” the department said.
As for Saunders’ exit payment, DPS said it had not been repaid.
“DPS is considering the public release of a summary report outlining Dr Roughley’s findings,” the department said.
“This will also include the actions that DPS has taken to action the report’s recommendations.”