Probity auditors are engaged to observe and review the competitive bid process and establish whether the procedures have been administered fairly and impartially to all parties. The probity auditor addresses the process however he/she cannot ensure value for money is achieved through the decisions made.
The probity auditor is commonly an observer in dealings between proponents and the government project team, such as at presentations and interviews.
A probity auditor has three main roles:
• To provide independent scrutiny of the competitive bid process to ensure that prescribed processes are complied with and that no party is given an unfair advantage or is unfairly discriminated against
• To provide advice to the government project team concerning probity issues which may be raised during the process
• To consider the efficacy of proposed solutions for probity related issues which arise during the competitive bid process and investigate any probity issues raised by bidders throughout the process
• To provide interim reports throughout the competitive bid process and a final report at the end of the process which records an independent professional view of the manner in which it was managed, from a probity perspective. The final report should be submitted to the Minister responsible for the line agency undertaking the public private partnership process and be tabled in Parliament.
A probity auditor cannot:
• Act as insurance against errors in decision making
• Be expected to comment on the commercial effectiveness of the government project team in its dealing with proponents
• Be called in part way through the competitive bid process to remedy an already flawed process. In this regard, it is important to ensure that, if a probity auditor is to be engaged, this is done at the earliest opportunity in the bid process, but in any event, well before bid documents are finalised.
Probity auditors should not be used to transfer risk from the line agency to someone else. Management is still accountable for the decisions it makes. The engagement of a probity auditor should not be seen as a substitute for the adoption of sound processes.
Some of the specific tasks that a probity auditor should undertake include:
• Review the probity plan for soundness
• Review the proposed documentation relevant to the competitive bid process from a probity perspective
• Respond to requests to examine any probity issues arising during the course of the project
• Report on any act or omission in the competitive bid process that affects, or may affect, the integrity of the process
• Attend meetings where necessary
• Monitor adherence to the probity plan
• Provide report(s) as required by the chair of the steering committee.
In addition, the probity auditor can be requested to oversee the appointment of the government project team's advisors.
The probity auditor should be given full access to necessary documentation, personnel, meetings and premises to assess the adherence to the principles of probity.
It is recommended that an external probity auditor be appointed where:
• The transaction is of high value
• The matter is highly complex, unusual or contentious
• The nature of the market place makes roponent grievances more likely (e.g. where commercial secrets are commonplace, or where competition is particularly fierce)
• Proponents are being asked to commit considerable funds to preparing their bids
• It is an innovative project where proponents are likely to be concerned about protecting their ideas (intellectual property) and comparison of proposals focuses on outcomes rather than comparing like bids
• The matter is politically sensitive
• Where there is a high probability of conflict of interest
• The integrity of the project may be questioned.
Public private partnership projects are generally of sufficient size and complexity to warrant appointment of an independent probity auditor.