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Andrews created a culture of fear and centralised power: ombudsman

The Victorian public service became ruled by a culture of fear under former premier Daniel Andrews where excessive secrecy, wide use of consultants and appointment of former ministerial staff without proper process became the norm.

Victorian Ombudsman Deborah Glass on Wednesday handed down a long-awaited report on the alleged politicisation of the Victorian public sector, which found the former premier had roughly as many staffers as the prime minister and NSW premier combined.

Daniel Andrews served as the 48th premier of Victoria from 2014 to 2023. Joe Armao

The centralisation of power under Mr Andrews was reflected in top public servants being blindsided by major projects such as the $125 billion Suburban Rail Loop and the cancelled the 2026 Commonwealth Games, the report found.

Despite a two-year investigation, Ms Glass on Wednesday said many public servants declined to speak to her. She said the fear was “disturbing” and “very widespread”.

“Two sentiments stood out – concern and fear. Concern about what people saw as the quickening corrosion of longstanding Westminster principles of responsible government. Fear that if they spoke up, if they were in any way identifiable as having done so, their careers would be finished,” the report concluded.

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In one example, a public official lost employment after providing candid advice to the government regarding “a costly election commitment” shortly after its win in 2014.

The report investigated 45 highly placed public servants and reviewed millions of individual records across more than a dozen agencies. But Ms Glass found that cabinet secrecy was a “significant block” to a full investigation.

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“A culture of fear in the upper echelons of the public sector does not support frank and fearless advice,” she said.

The report charts how the development of the Suburban Rail Loop was subject to “excessive secrecy” and found that senior public servants were excluded from consultations on the 90-kilometre orbital rail line around Melbourne.

The report also found instances of “the frequent appointment of former ministerial staffers without open and advertised processes, often explained by a pressing need to hire someone familiar with government policy to ‘get things done’.”

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The report also focused on the expanded role of the Premier’s Private Office, or PPO as it is known, which expanded to 84 staff and became central in the decision-making process, above the public service and even ministers.

“One former secretary noted many public servants showed an unhealthy focus on PPO views and reactions, which were perhaps even put above those of their relevant minister’s office,” the report said.

Ms Glass has recommended that a new independent public service chief should appoint senior bureaucrats. She also recommended the overhaul of employment clauses that let the government terminate workers at short notice, and recommended improvements to minimise cabinet secrecy.

‘Deeply unfair’

Mr Andrews was not interviewed. Premier Jacinta Allan, in Canberra on Wednesday for a national cabinet meeting, said the ombudsman’s report did not find one example of partisan political hiring in the public sector.

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“Those inferences that are being drawn by others, the speculation, the shade being thrown on a very strong public sector that we have in Victoria is not just deeply unfair, it is not founded in any evidence that is presented in the report released today,” she said.

Treasurer Tim Pallas said there had been a “relaxation on central control” since Ms Allan succeeded Mr Andrews, but added that central control established a “very capable” and “high performing” government.

“The premier has a different style and that’s the way she wants to go about it. I think you’d find from the ministers that they’re quite relaxed with that approach,” Mr Pallas said.

Ms Glass, when asked if she believed the culture of the Victorian public sector would change following the departure of Mr Andrews, said: “I can’t answer that question. I simply don’t know.”

Victorian Department of Premier and Cabinet secretary Jeremi Moule later hit back at her assertions regarding the role, scale and influence of his department.

“It is clear that the ombudsman and I have differing views in relation to DPC’s role in serving the government and in leading the Victorian public sector,” Mr Moule said.

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“It is my hope now that the ombudsman’s findings will bring to an end unfounded and unfair criticisms of Victoria’s skilled and dedicated public sector workforce.”

Opposition Leader John Pesutto described the report as one of the “most serious and damning” indictments yet on the state Labor government, and said he would lead a government that put a premium on integrity and good governance if elected in 2026.

Gus McCubbing is a journalist at the Australian Financial Review in Melbourne. Connect with Gus on Twitter. Email Gus at gus.mccubbing@afr.com
Patrick Durkin is Melbourne bureau chief and BOSS deputy editor. He writes on news, business and leadership. Connect with Patrick on Twitter. Email Patrick at pdurkin@afr.com

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