Two former senior officials at the Canberra Institute of Technology (CIT) — then-CEO Leanne Cover and Andrew Whale, executive director of education and training services — engaged in serious corrupt conduct in approving a $5 million consultancy contract, the ACT Integrity Commission has found.
The Commission’s second Special Report on Operation Luna focused on the sixth contract CIT awarded to Patrick Hollingworth’s consultancy firm, Redrouge Nominees Pty Ltd. The $4.99 million contract, signed in March 2022, allowed for 99 per cent of the total to be paid before the contract ended, and before services were rendered.
The Commission found that a key document justifying these payments contained knowingly false and misleading statements. Ms Cover and Mr Whale falsely claimed the prepayments were necessary to enable the contractor to acquire resources and begin work, despite no such justification being raised in negotiations. The Commission found the justification was a “fiction”, designed to enable improper payments and to mislead oversight bodies.
“This was not a case where relevant information was omitted… to cover up some unfortunate mistake,” the report states. “A fictional narrative was placed in a crucial authorisation… enabling a multimillion-dollar procurement… at the cost of the Territory and deflecting or misleading scrutiny or inquiry.”
The Commission concluded that Ms Cover and Mr Whale’s actions met the legal threshold for “serious corrupt conduct” under the Integrity Commission Act, and undermined public confidence in government probity and oversight.
Operation Luna was launched in June 2022 to investigate allegations of corrupt conduct associated with more than $8.5 million in CIT contracts awarded to entities associated with Mr Hollingworth, including ThinkGarden and Redrouge. The first report, tabled in 2024, examined broader governance failures within CIT and its relationship with the responsible Minister, Board, and CEO.
Mr Hollingworth is not the subject of adverse findings in this report.
In response to the findings, CIT Board Chair Kate Lundy said Ms Cover and Mr White were no longer with the organisation, and that CIT has undertaken significant reforms since 2022.
A new CEO, Dr Margot McNeill, was recruited last year after a nationwide process. “This is an essential role for CIT and comes at a critical time after rebuilding capacity and focussing on governance, procurement, and financial processes,” Ms Lundy said.
Since August 2022, in line with ministerial direction, CIT has strengthened its governance arrangements. The Board now requires approval for procurements over $1 million, and for consultancy procurements over $500,000. Other reforms include the formation of a Board Governance and Nominations Committee, a CIT Integrity Committee, a new Fraud and Corruption Policy, and a new governance framework.
“The CIT Board looks forward to the Integrity Commission’s final report to ensure that CIT has taken all required steps to improve its processes,” Ms Lundy said.
