Victoria’s public service has been muzzled by a strong-armed state government and creeping politicisation has become a reality, a damning report reveals.

Some bureaucrats fear speaking out could lead to them being sacked or tailor their advice depending on the government of the day, a Victorian Obmudsman’s report into the alleged politicisation of the state’s public sector found.

It revealed early planning of both the Suburban Rail Loop and now-aborted 2026 Commonwealth Games were impacted by heavy secrecy and a reliance on consultants, which potentially impacted the public sector’s ability to provide frank, impartial and timely advice.

Ombudsman Deborah Glass on Wednesday tabled the second iteration of her report in parliament, which was triggered by a successful motion in the state’s upper house by former Labor powerbroker Adem Somyurek.

It once again did not find the public service had been improperly stacked with Labor operatives but it uncovered it had been politicised in “other, equally pervasive ways”.

“Creeping politicisation is a reality in Victoria, and requires urgent attention,” Glass said.

The state’s public sector had been “marginalised” and was unable to remain an impartial body that served the government of the day while providing it with frank and fearless advice.

The report took aim at relying on consultants who “proved up” the Suburban Rail Loop project, which was announced just months before the 2018 state election.

“Its announcement blindsided the agency set up by the same government to remove short-term politics from infrastructure planning,” the report stated.

The ombudsman detailed a culture where senior hiring decisions were undermined by the sidestepping of processes, including frequent direct appointments of former ministerial staffers, shoddy and opaque recruitment practices and poor record-keeping.

“Perception matters,” Glass said.

“Not only must merit selection be done, it must be seen to be done.”

Glass described the concerning growth and influence of the former premier’s private office where a concentration of decisions were made outside of specialist departments. “In 2022 the Victorian premier had roughly as many staffers as the Australian prime minister and NSW premier combined,” she said.

After interviewing 45 highly placed public officials and reviewing millions of records, the ombudsman noted the “troubling” number of public servants afraid to contribute, fearing retribution if they spoke up.

The report made eight recommendations including establishing a public service head to replace the premier as the employer of department and administrative heads, stronger hiring practices and the lifting of excessive cabinet secrecy.

When asked about the report on the way to a national cabinet meeting in Canberra, Victorian Premier Jacinta Allan thanked the state’s public servants for their contribution.

“We have a very strong public sector, people who work hard every single day to deliver the services that the Victorian community needs,” Allan told reporters.

Former premier Daniel Andrews was cleared in the ombudsman’s first investigation of spearheading the “red shirts” scheme which found Labor misused $388,000 of taxpayer funds during the 2014 election campaign.

No criminal charges were laid after the report despite 21 past and present Labor MPs being found to have breached parliamentary guidelines.