Queensland Premier Annastacia Palaszczuk's former chief of staff has been cleared of corruption allegations, but the corruption watchdog says he failed to properly declare his interests.
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The opposition referred David Barbagallo to the Crime and Corruption Commission after his company was awarded $267,500 in state funding to develop a mobile app.
Mr Barbagallo was chairman of Fortress Capstone, while also working in Ms Palaszczuk's office, when the firm was awarded the funding in August 2017.
CCC chairperson Alan MacSporran's probe found that Mr Barbagallo had no involvement in the funding application or vetting process.
"There are no grounds for consideration of prosecution proceedings against Barbagallo for the offence of misconduct in relation to public office," said the CCC report, released on Wednesday.
However, the report found Mr Barbagallo failed to properly declare his interests. In particular, his roles as chairman, director and shareholder of Fortress Capstone.
Mr Barbagallo claimed he had made "innocent oversights" in an interview with investigators.
He said as former premier Wayne Goss' chief of staff in the 1990s he was one of the "good guys" who had set up the then Crime and Misconduct Commission.
During the interview, Mr Barbagallo also lashed out at the Liberal National Party.
"You know that other mob are the ones that are corrupt and f***ed over this state," he told the CCC.
"So you know I have an intellectual, philosophical and personal commitment and everywhere I've worked I've set up procurement policies and a whole bunch of things to ensure people aren't doing the wrong thing."
But the probe found Mr Barbagallo's declaration of interests forms had not been signed and dated by the premier, even though she may have seen them.
The report said Mr Barbagallo should face disciplinary action over the matter, but he resigned from the premier's department in September 2019.
"There is no provision in the contract ... to consider post-separation disciplinary action against Barbagallo for his failure to declare his interests as required," Mr MacSporran wrote.
The commissioner said the episode highlighted the importance of public servants avoiding conflicts.
"Conflicts of interest can ... cause public officials to put their private interests above the public interest (or create a perception that this has been done), contrary to what the Queensland public expects," the report said.
The CCC recommended that a person be appointed to oversee all declaration of interest forms and that a new conflict of interest form be drawn up for ministerial staffers.
The watchdog called for the Queensland Investment Corporation to issue a standardised document to record actual or perceived conflicts of interest of panel members and funding applicants.
Mr MacSporran said individual panel members should record their reasons for short-listing pitches for funding, and government staffers should disclose Integrity Commissioner advice they receive about real or perceived conflicts of interest to their managers.
A spokesman for the premier said Mr Barbagallo had not been employed in the premier's office since October.
"The government accepts all the recommendations outlined by the CCC in today's report," a statement said.
Australian Associated Press
