Leanne Cover, former CEO of the Canberra Institute of Technology, received a payout of nearly half a million dollars, it was revealed in Estimates hearings this morning.
Ms Cover resigned last month, a week before the release of the report of the investigation of the Integrity Commissioner, the Hon. Michael Adams KC, into the $8.78 million contracts of Ms Cover with ‘complexity thinker’ Patrick Hollingworth. The report found Ms Cover guilty of serious and corrupt conduct.
Natalie Howson, deputy chair of the CIT board, stated that Ms Cover received $465,262.13 ($249,896.13 after tax).
It was, skills minister Chris Steel confirmed, Ms Cover’s lawful entitlements under employment law (her accumulated long service and unused annual leave, including entitlements accrued from her time as an ACT Government employee), and Ms Cover would have been entitled to the same payout had her employment been terminated.
Although suspended, Ms Cover had continued to be paid her normal salary, increased to more than $383,000 last month. Interim CEO Christine Robertson had been paid at the same rate as Ms Cover, since the latter’s suspension.
Canberra Liberals leader Elizabeth Lee said that “slugging Canberra taxpayers” with the bill for the payout during a cost-of-living crisis was “absolutely outrageous”.
Mr Steel claimed that the finding “sends a strong message to everyone across government that this type of deceptive conduct, pattern of concealment, and dishonesty will not be tolerated”. The finding would “potentially impact on [Ms Cover’s] lifelong employment opportunities”.
Earlier this year, Chief Minister Andrew Barr had tabled an instrument that denied senior public servants and government-appointed executives contract payouts if they were found guilty of corrupt conduct.
However, Ms Lee observed, Ms Howson stated that the board was required to pay out Ms Cover, despite the corruption finding.
“Now, that doesn’t fly,” Ms Lee said. “Either Mr Barr has been utterly incompetent and not realised that he’s not actually addressed the issue, or he has been wilfully misleading the public. Either way, it’s the Canberra taxpayers that are footing the bill once more.”
Ms Lee also held that Ms Cover should have been stood down earlier. Ms Howson said that the Board had begun an internal audit, but the Integrity Commissioner had asked the board to pause the audit until his investigation was complete. She alleged that the CIT board’s priority had been to uphold principles of procedural fairness and natural justice while they awaited the outcomes of the Integrity Commission’s report; no-one expected it would take two years.
However, Mr Adams testified that nothing should have prevented the CIT board taking action against Ms Cover. He said he had informed the board that his investigation should not impede their independent consideration of what should happen to a staff member.
