NSW state insurer icare has failed to comply with transparency requirements over contracts for a number of years, a new report from the NSW Information and Privacy Commission (IPC) has found.

The audit identified non-compliance with the contract register requirements of the Government Information Public Access (GIPA) Act, and the non-compliance was known about by management as far back as 2016.

Despite “assurances of remedial action” IPC found that effective action was not taken until last year.

Separately, the Sydney Morning Herald yesterday highlighted the tender process to build a claims and billing platform for icare’s workers’ compensation scheme, which was described as “rushed” and “a sham”.

icare told insuranceNEWS.com.au today that “recently publicised issues” don’t reflect the way it aspires to deliver services, and that work is underway "on multiple fronts". It says the historic non-compliance was caused by "underdeveloped systems and internal confusion".

IPC says increased transparency on government contracts with the private sector “can lead to improved performance of outsourced services, as well as increased efficiency and value for money”.

The GIPA Act requires agencies such as icare to enter information on relevant contracts to a register within 45 days of the contract becoming effective. This information is then published.

Despite “an extended period of non-compliance”, IPC says icare has demonstrated since March this year “a willingness to engage and take steps to address issues of non-compliance”.

IPC says a second phase of the report will look in greater detail at the “scope of non-compliance” and an assessment will then consider “whether an escalation of regulatory action by the IPC may be appropriate”.

It has made eight recommendations, including that ownership of the remediation program is assumed by the CEO and that independent oversight is provided by icare’s Audit and Risk Committee.

“It appears that the absence of a clear governance framework relating to the disclosure of contracts has contributed to icare’s historical non-compliance with the contract reporting requirements of the GIPA Act,” the report says.

“Leadership and effective oversight will be key to achieving compliance in circumstances where non-compliance has been entrenched.”

icare says it has now disclosed all active contracts and will continue to do so within the 45-day requirement.

“icare welcomes the Information and Privacy Commission NSW’s GIPA Compliance Report and is in the process of adopting and implementing the recommendations in full,” a spokeswoman told insuranceNEWS.com.au.

“A quality assurance review of internal procurement processes is underway to drive continuous improvement and confidence in the way icare procures goods and services.

“In addition, an independent review of icare’s culture, governance and accountability is now underway.

“The icare Board has also established a new Committee on Corporate Governance which will review the adequacy and operation of icare’s governance policies and structures. A Corporate Governance expert will be appointed to act as a standing advisor to the Committee.”

Click here to read the IPC report.

Click here to view icare’s public contracts register.