The ACT Government has welcomed today’s announcement that the ACT Integrity Commission and Auditor-General will investigate the procurement of CIT CEO Leanne Cover’s nearly $9 million contracts with ‘complexity and systems’ consultant Patrick Hollingworth since 2017.
ACT Skills Minister Chris Steel, unsatisfied with the “jargon”-ridden, “ill-defined” contracts, invited the Auditor-General earlier this month to review the contract and pursue an inquiry.
Mr Steel said today that the reviews would “get to the bottom of what’s occurred, whether these contracts are value for money, what they will deliver, and why they were undertaken”.
“The government and the community expect that public money should be used efficiently and effectively. That goes to the heart of the investigation.”
- Chris Steel will use ministerial powers to direct CIT (17 June)
- Elizabeth Lee: CIT internal review ‘rings alarm bells’ (17 June)
- CIT promises independent audit of multi-million Think Garden contract (15 June)
- CIT’s $9 million contracts a concern for taxpayers (7 June)
Similarly, Greens MLA Andrew Braddock, spokesperson for integrity, hoped the Commissioner’s findings would provide clarity on how the contracts were made.
“It is really important for governments to have an independent oversight function, which is exactly why the Greens campaigned for so long for an Integrity Commission, and it is good to see it in action.”
CIT will also hold an internal audit, conducted by an external independent auditor – although Mr Steel thinks the institution’s response should be “stronger and more decisive”.
Opposition leader Elizabeth Lee was also pleased an independent investigation will be held. She revealed the contracts to the ABC earlier this month.
“Many Canberrans are rightly concerned about these contracts,” she said.
But what Ms Lee considers negligence on the part of both the government and the CIT Board also concerns her. At the last Legislative Assembly session, she called for Mr Steel to resign.
The Minister, she said today, “has failed to be open and transparent about what he and the Chief Minister knew, when they knew it, and why they failed to discharge their ministerial responsibilities, allowing further contracts worth millions of taxpayer funds to be signed.”
Ms Lee also believes the election of deputy chair Kate Lundy, a former Labor senator, to chair of the Board is inappropriate, given she was a member of it when Ms Cover entered into the contracts.
“I hope the Integrity Commission’s investigation will allow a comprehensive, independent review into these serious issues, and we see an outcome in the best interests of the staff, students and the CIT going forward,” Ms Lee said.
Mr Steel said today that he was confident Ms Lundy would “strengthen the governance of the CIT Board and put in place the risk controls necessary to make sure this type of thing doesn’t happen again”.
Mr Steel has also asked the Board to review Ms Cover’s management contracts and take any action necessary.
