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‘Conflicts of interest’ behind Australian parliamentary official’s $315k retirement payment, report finds

Barrister finds ‘multiple procedural failures’ in payment to Cate Saunders, who had ‘close’ relationship with former DPS secretary

An independent “fact-finding mission” into a $315,126 retirement payment to a senior parliamentary department official has found “multiple procedural failures” including overpayment, a disregard for specialist advice and “excessive pressure” applied in the payment’s timing.

The report by Sydney barrister Fiona Roughley SC, released Thursday, found there were “conflicts of interest” and “conflicted persons” within the Department of Parliamentary Services involved in the decision-making process.

In Senate estimates hearings in 2024, the former DPS secretary Rob Stefanic said he declared a conflict of interest with Cate Saunders, his former deputy secretary, in August 2022, due to a “close” personal relationship.

Saunders remained his subordinate for eight months until she was seconded to Services Australia, where she later accepted a $315,126 incentive payment for her retirement from the public service on 1 October 2023.

The National Anti-Corruption Commission confirmed in March this year it was also conducting an investigation related to the subject matter of Roughley’s report.

Roughley’s report also found multiple procedural failures resulted in Saunders’ retirement payment deviating from public service guidance material, which “resulted in an increase in the quantum of the payment made”.

The report highlighted additional concerns including the “exclusion”, “lack of involvement” and/or “disregard for the advice of specialist DPS payroll staff”.

It also noted concerns about “excessive pressure applied on the timing of the payment”.

The report made seven recommendations, including quarantining conflicted decision-makers from the process and documenting the reasons for making an offer.

Stefanic told Senate estimates in 2024 that the working relationship between Saunders and himself was “transactional” after declaring a conflict of interest, and that his dealings with Saunders as her boss during that period were “purely administrative in nature”.

The former long-serving secretary said he had formally declared a conflict of interest with Saunders due to “gossip” and “rumour” about their “close, personal” relationship.

While the exit package was approved by the Department of Parliamentary Services, Stefanic told the hearing he was not involved in its signoff.

The details arose across subsequent Senate estimates hearings. The DPS is not subject to freedom of information legislation.

Stefanic stood down in December 2024 after a period of indefinite leave months after his position first came under intense scrutiny.

The now DPS secretary, Jaala Hinchcliffe, ordered the independent review in July 2024, telling a November Senate estimates hearing there were no records of conversations Stefanic said he had with the presiding officers and the parliamentary services commissioner about the declared conflict of interest.

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