• The ACTis has raised one flag for DCS and placed two under monitoring.
• Prolonged acting positions and contested appointments suggest instability and irregularity in leadership and senior management appointment processes. The position of Chief Financial Officer (CFO) is particularly concerning, given the responsibility it carries and the vulnerability to undue influence created by temporary appointments. The link between a senior executive and potential abuse of resources is a further concern.
• Repeated procurement irregularities could indicate an environment susceptible to corruption. Given the DCS’s history of state capture, this could be a legacy issue.
• Although there are clear signs of governance weakness, improvements have been seen in procurement, audit outcomes, irregular expenditure and consequence management. This suggests fragmented risks across the Department rather than a coordinated pattern of influence that typifies attempts at state capture.