Stood-down CIT CEO resigns, court action delays inquiry report

Embattled Canberra Institute of Technology CEO Leanne Cover has resigned from the $373,000-a-year position two years after she was ordered to stand down from the role.

Her resignation comes after a corruption probe into $8.5 million of consultancy contracts awarded to “complexity and systems thinker” Patrick Hollingworth.

The ACT Integrity Commission completed its interim report on Operation Luna late last year but parties were given more than the six weeks allowed to respond. The report was expected out in April but the matter has dragged on to the middle of the year.

Late today the AIC said it had planned to hand the report to the Speaker of the Legislative Assembly today but a person named in the report had gone to the Supreme Court seeking an injunction to prevent the Commissioner from giving the report to the Speaker.

The court has ordered that the identity of that person not be published and set down a hearing to consider the application on Friday 21 June.

CIT Board chair Kate Lundy said Ms Cover tendered her resignation yesterday but it did not provide any reason for leaving now.

“The CEO’s decision is her own and I’m not able to comment any further on her decision,” she said.

Ms Lundy said she could not speculate on the timing of the decision or the conduct and length of the ongoing AIC inquiry.

“Procedural fairness is very important,” she said. “The Integrity Commission must be allowed to conduct its work in its own time.”

Ms Lundy said the CIT’s own inquiry had deferred to the AIC probe, which had priority, “so we await the outcomes of the Integrity Commission investigation”.

Ms Lundy confirmed that Ms Cover had been paid her full salary up to her resignation.

She would not comment on the state of legal action taken by two of Mr Hollingsworth’s companies against the CIT over a cancelled $5 million contract, saying it was all subject to legal professional privilege.

Nor would she comment on what the situation would be if there was an adverse finding against Ms Cover.

“We’ll deal with that when it comes,” she said.

Ms Lundy said Ms Cover’s departure would allow the CIT to start a recruitment process for a replacement permanent CEO.

CIT has had to pay for two CEOs, with Melbourne-based Christine Robertson filling in as the interim chief executive since Ms Cover was stood down.

Ms Robertson has another 12 months to go on her contract, which Ms Lundy said would give CIT the time to find a new CEO.

She acknowledged people’s frustration about the double pay but said procedural fairness demanded it.

“It’s difficult for people to understand why we’ve needed to pay the CEO while she’s been stood down,” Ms Lundy said, “but I think any reasonable person would agree that procedural fairness is the first principle that we apply, and we have abided by that principle.”

Ms Lundy rejected claims from some staff that Ms Robertson had not been visible enough in the organisation.

“I don’t understand that concern because today the CEO is out meeting members of staff in different staff forums,” she said.

“My observation is she has an immense amount of contact with staff across the organisation.”

Ms Lundy thanked students and staff for their patience and support.

“These issues are really difficult for everyone to deal with … and I thank them for their forbearance,” she said.

The CIT Board informed the Minister for Skills and Training, Chris Steel, today of Ms Cover’s resignation.

“A comprehensive recruitment process for a new CEO can now begin by the CIT Board,” he said.

“This will ensure that the institution can continue to focus on delivering high-quality training to meet the needs of students, staff and industry.”

Operation Luna is intended to determine whether the conduct of certain CIT public officials amounts to corrupt conduct and/or serious or systemic corrupt conduct.

Over a five-year period, over $8.5 million was given to Hollingworth companies ThinkGarden and Redrouge Nominees Pty Ltd for services including mentoring and organisational transformation.

The last and most significant of those contracts was worth $4.99 million and was signed in March 2022, four months after the Integrity Commission first received a complaint.

Mr Hollingworth is suing CIT for $3.38 million (including costs) for breaking this contract for services to support its organisational change project.

Ms Cover was stood down in June 2022.