| Circular Number | 2026-34 |
| Issue date: | 29 October 2026 |
| Application: | All Victorian public sector employees |
| Enquiries: | Policy and Integrity team Victorian Public Sector Commission [email protected] |
On 15 October 2026, the Independent Broad-based Anti-corruption Commission (IBAC) released a special report on Operation Harmonia.
The Victorian Public Sector Commission urges Victorian public sector employees, particularly senior leaders and those responsible for advising Ministers, to read and reflect on the findings of this report.
Operation Harmonia examined:
IBAC found that senior public servants did not accurately tell the relevant Secretary and Minister about the suspected loss. IBAC also identified instances where false, misleading or incomplete information was created and provided to decision-makers and oversight bodies.
These failures meant senior decision makers were unable to fully understand the issue or respond appropriately, limiting the Government’s ability to address the suspected loss of public funds.
The report highlights the critical importance of providing frank, impartial and timely advice, and the risks that arise when decision-makers are not given complete and accurate information.
IBAC also noted that fostering an environment where frank and fearless advice is valued helps protect agencies and public funds from fraud and potential corruption.
These obligations are reflected in the legislated Victorian public sector values and VPSC codes of conduct.
In practice, this means that public sector employees must:
The COVID-19 pandemic created an exceptionally demanding environment for Victorian public sector employees. We were required to make highly consequential decisions and deliver critical support under significant time pressure.
These circumstances placed considerable strain on staff, processes and systems. However, they also reinforced the value and importance of how we do our work. Even under the highest pressure, we need to strive to provide effective oversight, risk escalation and frank, accurate advice to decision makers.
The findings also serve as an important reminder that having a speak up culture is critical to our success, especially during these periods of intense pressure.
“In rapid response environments, mistakes are likely to occur. Departmental officers should not be criticised for making honest mistakes. However, when mistakes are identified they must be addressed in a timely manner to prevent issues from compounding."
Operation Harmonia highlights the importance of promoting a speak-up culture. Senior leaders play a key role in creating this culture.
Staff should feel safe to raise concerns, identify mistakes, share difficult information and use their professional judgement without fear of negative consequences. Leaders should support staff to report risks, respond constructively and ensure serious issues are carefully considered.
The Victorian Public Sector Commission will continue to reflect on this report and strengthen our approach to promoting the obligations under the code of conduct.
This will include enhancing guidance materials, incorporating key messages into training and working with senior leaders to identify further opportunities to reinforce expectations and address gaps in current practice.
The VPSC encourages public sector employees and senior leaders to familiarise themselves with the following resources: