In the world of procurement, one word matters more now than ever before: probity.
In an environment where trust, transparency and accountability are non-negotiable, probity is the ethical bedrock that underpins every successful procurement process—whether you’re working in a government agency managing billions in public funds, or a private company engaging with suppliers under increasing ESG scrutiny.
But while most procurement professionals have heard the word, fewer can confidently define it, and even fewer consistently apply it. In this post, we’ll unpack what probity actually means in practice, why it’s attracting renewed attention, and how both public and private organisations can strengthen their procurement integrity.
What Is Probity in Procurement?
At its core, probity means acting with integrity, honesty and transparency—particularly when public money, competitive tenders, or high-stakes contracts are involved. It’s about ensuring fairness and impartiality, managing conflicts of interest, and making decisions based on merit, not influence.
In the public sector, probity also carries a legal and fiduciary duty. As the Australian Government’s Department of Finance puts it, probity is not just about avoiding corruption—it’s about protecting public confidence in how taxpayer dollars are spent.
In the private sector, the same principles apply, particularly where procurement impacts shareholders, investors, customers, or communities. With growing expectations around transparency and ethical sourcing, businesses can no longer afford to treat probity as a government-only concern.
Why Probity Is in the Spotlight in 2025
Over the past year, a string of procurement controversies has brought probity—and its absence—into sharp public focus. Here are just a few examples:
1. Defence and Thales: A $1.2 Billion Wake-Up Call
An Australian National Audit Office (ANAO) investigation into a $1.2 billion munitions deal with Thales Australia revealed that a Defence official had shared confidential tender information with the company, while accepting expensive gifts—including champagne—during the tender period.
The outcome? A major reputational hit to Defence, public outcry, and renewed scrutiny of probity practices in sole-source contracting (The Australian).
2. The Australian War Memorial Redevelopment
In April 2024, an audit revealed that the $550 million redevelopment of the Australian War Memorial did not follow key probity safeguards. Multiple contracts were awarded without ministerial oversight, prior relationships were not disclosed, and contract splitting was used to bypass approval thresholds.
It wasn’t just about missing paperwork—it was about public confidence, good governance, and the perception that major decisions were being made behind closed doors.
3. Salesforce and the NDIA
In the private sector, tech giant Salesforce found itself under scrutiny for its dealings with the National Disability Insurance Agency (NDIA). A 2024 parliamentary report raised concerns about potential conflicts of interest and inappropriate hospitality offered during a major contract negotiation. While no formal findings of misconduct were made, the case highlighted how easily lines can blur when ethical guardrails aren’t clearly defined (The Guardian).
Probity Isn’t Just a Public Sector Issue
There’s a common misconception that probity only matters in government contracts. The reality is very different.
Private sector organisations are now expected—by shareholders, regulators, and customers—to uphold similar standards of fairness, governance, and transparency. Procurement decisions that are perceived as biased, unfair, or non-competitive can damage trust, erode brand reputation, and even result in legal action.
With ESG obligations, supplier diversity targets, and modern slavery risks rising up the agenda, procurement integrity is no longer a tick-box exercise—it’s a boardroom issue.
What Does Good Probity Look Like?
Strong probity frameworks don’t just protect against corruption—they create confidence, clarity, and consistency in decision-making.
Here are the five principles that should guide every procurement activity:
1. Integrity
Act honestly and consistently. Don’t cut corners. Be transparent with your rationale. Apply the rules the same way every time.
2. Transparency
Record your decisions. Publish evaluation criteria. Document your engagement with suppliers. If challenged, you should be able to show the process was fair.
3. Accountability
Ensure decision-makers understand and own their responsibilities, because probity thrives when roles are clear and authority is appropriately exercised.
4. Impartiality
Avoid any perception of favouritism or bias. Because, that includes managing relationships, gifts, and prior dealings. Declare conflicts—perceived or real.
5. Confidentiality
Keep supplier information secure. Breaches—whether deliberate or accidental—can destroy supplier confidence and open the door to litigation.
Practical Tips for Strengthening Probity
Regardless of whether you’re in government or the private sector, here are practical ways to embed probity into your procurement processes:
Start with clear policies
Ensure your procurement and conflict of interest policies are up to date, practical, and understood. Probity frameworks should be embedded in everyday practice—not just in high-value tenders.
Train your teams
Probity is not innate knowledge. Run regular training sessions, scenario-based workshops, and refresher courses for anyone involved in procurement, finance, or supplier engagement.
Engage a probity advisor (when appropriate)
For complex, high-risk, or politically sensitive procurements, bring in a probity advisor early. They can help design the process, advise on market engagement, and ensure transparency from start to finish.
Use probity plans and registers
Create a probity plan for major procurements that details how you’ll manage conflicts, confidentiality, communication, and record-keeping. Maintain a live register of declarations.
Embed audit and review processes
Regularly audit procurement activity. Look for patterns—are rules being consistently followed? Are certain suppliers being favoured? Are records complete?
The Risk of Getting It Wrong
Failing to uphold probity doesn’t just risk poor outcomes—it can have serious consequences:
- Tender challenges or supplier complaints
- Investigation by integrity bodies (ICAC, Ombudsman, ANAO)
- Reputational damage that undermines trust in your organisation
- Project delays or cancellations
- Financial waste and value-for-money failures
When probity is compromised—as seen in the Defence procurement scandal—the consequences can be severe, including disciplinary or criminal action against individuals.
Probity and Procurement Reform: The Road Ahead
As part of the 2025 Federal Budget reforms, the Australian Government has not only recommitted to stronger probity and governance in procurement but also placed a renewed focus on Indigenous procurement, ESG compliance, and SME engagement.
Digital Transformation Agency (DTA) and Finance Department on using AI tools in procurement while maintaining probity and transparency.
Meanwhile, states like Victoria and Queensland have updated their procurement probity frameworks to include social procurement, collaborative contracting, and open book costing.
This reflects a clear direction: probity is evolving, and procurement leaders need to evolve with it.
Final Thoughts: Probity is the Price of Public Trust
In the end, probity is about more than avoiding scandal or meeting a checklist. Furthermore, protect your organisation’s integrity, ensure value for money, and uphold public or stakeholder confidence by making decisions transparently and responsibly.
While some might see ethical practice as optional, in a world of increased scrutiny, limited budgets, and complex policy demands, doing the right thing is not only good ethics—it’s also smart procurement.
Let’s make sure we don’t wait for the next scandal to remind us why it matters.
Further Reading and Resources
