The ACT Integrity Commission has examined 24 people and conducted forensic examinations of three mobile phones as part of its investigation into contracts awarded by the Canberra Institute of Technology. Photo: File.
The ACT’s corruption watchdog said it has made “significant headway” in its inquiries over the past 12 months, including into $8.5 million worth of consultancy contracts awarded by the Canberra Institute of Technology (CIT).
In its annual report, the ACT Integrity Commission said it has conducted private examinations of 24 people and a voluntary interview with one person as part of the investigation into CIT contracts, known as Operation Luna. The commission also conducted forensic examinations of three mobile phones and issued summonses for the review of materials produced by numerous government and private sector organisations.
Over a five-year period, over $8.5 million was given to companies ThinkGarden and Redrouge Nominees Pty Ltd, owned by “complexity and systems thinker” Patrick Hollingworth, for services including mentoring and organisational transformation.
The last and largest of those contracts was worth $4.99 million and was signed in March 2022, four months after the Integrity Commission first received a complaint.
In March 2023, Region reported that CIT CEO Leanne Cover had been stood down on paid leave from her $318,000-a-year job for “the duration of the inquiries and investigations”.
The Integrity Commission said there has been “a significant uplift” in the number of activities it is conducting.
“The increase in operational tempo is particularly reflected in the significant growth in the number of private examinations held and the volume of information and evidence-gathering work being undertaken. Notably, there was a 450 per cent increase in the number of examinations held, a 70 per cent increase in the number of confidentiality notices issues, and a 54.4 per cent increase in the number of summonses issued.”
As of June 2023, 13 investigations were on hand, along with eight preliminary inquiries.
The commission said it has prioritised two investigations – Operation Luna and Operation Kingfisher – “as they required a significant amount of investigative work, and because of the seriousness of the allegations”.
Operation Kingfisher concerns the contract awarded for the Campbell Primary School Modernisation Project.
The investigation seeks to determine whether public officials within the ACT Education Directorate failed to exercise their official functions honestly or impartially when making recommendations and decisions regarding the Campbell Primary School project between 2019 and 2020.
It is investigating why the directorate chose not to give the contract to Fyshwick-based Manteena despite being identified as the preferred tenderer in two key stages of the procurement process and to instead recommend Lendlease for the tender. The commission was told the ACT Government could have saved nearly $900,000 if a different tenderer was chosen for the project.
Operation Kingfisher included the commission’s first public hearings. It has also involved private examinations of 21 people, consideration of significant volumes of procurement documentation and forensic examination of three mobile phones.
Eight days of public examinations have been held so far, and nine witnesses have given evidence.
ACT Integrity Commissioner Michael Adams KC said in his foreword to the annual report that, for the first time, the commission was largely fully staffed at the end of the reporting period.
He said the commission is now “concentrated on dealing with a substantial backlog of corruption reports due to staffing shortfalls the previous year”.
However, the report noted that the commission “continues to experience instability in its staffing levels and problems related to its immaturity as an organisation”.
This reporting period marked the Integrity Commission’s third full year of operational activity after opening its doors on 1 December 2019.
In August 2022, Mr Adams told budget estimates that the commission was “significantly under-resourced” and would need additional investigators to help trawl through “well in excess of a million documents” relating to the CIT investigation.
Mr Adams said the commission had first intended to investigate only the latest contract but later had to adjust this and look into the entire series. He also indicated public hearings may be required.
“The investigation into the CIT has been significantly more resource intensive than expected and has been challenging for existing staff resources,” a report published by the Select Committee on Estimates said.
“This has had the impact of pushing out completion timeframes. The Campbell School investigation had also been substantial. At the same time, government procurement is proving to be an area that needs significant attention.”
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