How do I report suspected fraud or corruption within a registered organisation?

Okay, here's how you can report suspected fraud or corruption within a registered organisation, based on the legislation provided.

In Plain English

If you suspect that something shady is going on within a registered charity or not-for-profit, here's what you need to know:

  • To the ACNC: The ACNC Commissioner has the power to gather information to check if registered entities are following the rules and regulations. If you have information that suggests a registered entity isn't complying with the Australian Charities and Not-for-profits Commission Act 2012, you can report it to the Commissioner. This includes suspicions of fraud or corruption.
  • To the NACC: If you suspect corrupt conduct within the National Anti-Corruption Commission (NACC) itself, you can report it to the Inspector of the NACC.
  • To the FWC: If you reasonably believe that there has been a breach of a provision of Part 3 of the Fair Work (Registered Organisations) Act 2009 or the Fair Work (Registered Organisations) Regulations 2009, the reporting guidelines, a regulation made for the purposes of this Part, or a rule of a reporting unit relating to its finances or financial administration, you must give the FWC written notice to that effect and give to the FWC any relevant information obtained during the inspection.
  • How to Report: The specific process will depend on which organisation you are reporting to. For the ACNC, you would likely need to provide the information in writing.

Detailed Explanation

Here's a breakdown of the relevant legislation and how it applies to reporting suspected fraud or corruption:

  • Australian Charities and Not-for-profits Commission Act 2012:
    • Commissioner's Powers: Section 70-5 of the Australian Charities and Not-for-profits Commission Act 2012 grants the Commissioner the authority to obtain information and documents from entities if the Commissioner reasonably believes it's necessary to determine whether a registered entity is complying with the provisions subject to monitoring under Division 75 or whether the information subject to monitoring under Division 75 is correct.
    • Reporting Non-Compliance: Division 65 outlines the duty of registered entities to notify the Commissioner of certain matters. Section 65-5(1) states that a registered entity must notify the Commissioner if it has contravened a provision of this Act or has not complied with a governance standard or external conduct standard, and the contravention or non-compliance is significant.
  • National Anti-Corruption Commission Act 2022:
    • Reporting Corruption Issues: Section 202 of the National Anti-Corruption Commission Act 2022 states that any person may refer a NACC corruption issue or provide other information about a NACC corruption issue to the Inspector. Section 203 states that if the Commissioner becomes aware of a NACC corruption issue, the Commissioner must refer the NACC corruption issue to the Inspector.
  • Fair Work (Registered Organisations) Act 2009 and Fair Work (Registered Organisations) Regulations 2009:
    • Reporting Breaches: Section 278 of the Fair Work (Registered Organisations) Act 2009 outlines the process for reporting breaches of Part 3 of the Act or related rules found during an inspection of financial records. If a person reasonably believes that a breach may have occurred, they must give the FWC written notice and any relevant information.
    • FWC Referral to General Manager: Section 278(2) states that if the FWC receives notice under subsection (1) and the FWC is satisfied that there are reasonable grounds for believing that there has been a breach of a provision of this Part, the reporting guidelines, a regulation made for the purposes of this Part, or a rule of a reporting unit relating to its finances or financial administration, the FWC must refer the matter to the General Manager.
  • Competition and Consumer Act 2010:
    • Scams Prevention Framework: Sections 58BR and 58BS of the Competition and Consumer Act 2010 outline the reporting requirements for regulated entities regarding actionable scam intelligence and scams. Regulated entities must report actionable scam intelligence to the SPF general regulator and provide reports about scams to an SPF regulator upon request.
  • Fair Work Amendment (Corrupting Benefits) Act 2017:
    • Corrupting Benefits: Section 536D of the Fair Work Amendment (Corrupting Benefits) Act 2017 outlines offences related to giving, receiving, or soliciting corrupting benefits. This includes providing benefits to influence a registered organisations officer or employee or requesting benefits with the intention of influencing their actions.

I hope this helps!