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Exclusive: A corruption probe into the bureaucracy that runs federal parliament has widened, with multiple public servants ordered to step aside as investigators examine a six-figure exit payment to a senior executive.
9News can also reveal that seven senior and middle-ranking bureaucrats have been caught up in a separate investigation into missing records and whether the $315,000 payment was properly calculated.
The Department of Parliamentary Services (DPS) was raided by the National Anti-Corruption Commission in October last year and six days later its Secretary Rob Stefanic went on paid leave.
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 swiftly. We lost trust and confidence and he was terminated,” Lines told a parliamentary committee on March 27, the day before Prime Minister Anthony Albanese called the federal election.
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 both frequently cross-examined DPS officials over its operations criticised the department for its opacity.
“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 very concerning that we have our National Anti-Corruption Commission looking at the department that’s meant to be keeping our democracy, running parliament, supporting parliamentarians,” he said.
“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.”
