Labor minister Yvette Berry MLA has resigned from Cabinet after the ACT Integrity Commission found her former chief of staff and the former head of the Education Directorate engaged in serious corrupt conduct during the procurement of the Campbell Primary School modernisation.

Ms Berry was Deputy Chief Minister and held the education and housing portfolios.

Chief Minister Andrew Barr MLA accepted Ms Berry’s resignation this afternoon, hours after the Commission published its Operation Kingfisher report into whether the procurement was conducted with probity or affected by corrupt conduct.

The Commission found that former Education Directorate director-general Katy Haire and Ms Berry’s former chief of staff Joshua Ceramidas dishonestly created a “back door” for Construction, Forestry and Maritime Employees Union (CFMEU) interests to influence the procurement.

Their behaviour, the report said, was “of a character that would be likely to threaten public confidence in the integrity of Government or public administration”, followed by “a calculated attempt to cover up the truth”.

Two tender evaluation teams had recommended construction company Manteena as the preferred contractor, but the $18.2 million contract was ultimately awarded to real estate company Lendlease instead.

The Commission found the process effectively cheated Manteena; substantially increased the cost to the ACT; and was followed by a calculated attempt to conceal what had happened.

Neither Manteena nor Lendlease was found to have engaged in wrongdoing, and the Commission made no adverse finding or criticism against Ms Berry herself.

However, Mr Barr said that ministers were accountable under the Ministerial Code of Conduct for the decisions and actions of their staff.

“In light of the Commission’s findings about her former chief of staff, I have accepted the Deputy Chief Minister’s resignation as a minister,” he said.

“I acknowledge Deputy Chief Minister Berry’s long service to the ACT community and her contribution to government over many years. She has held significant ministerial responsibilities and played an important role in advancing reforms across education, housing, community services and the rights of vulnerable Canberrans.”

Mr Barr apologised to Canberrans who had been let down by the conduct identified in the report, describing the findings as “serious and deeply concerning”. He said appropriate referrals would be made to relevant authorities, and further administrative or employment action would proceed in accordance with procedural fairness.

The Chief Minister said the government had strengthened procurement and integrity arrangements since the events investigated, which took place between 2019 and 2020.

Interim ministerial arrangements will be put in place before Labor caucus meets early next week to determine new Cabinet responsibilities.

Earlier today, the Canberra Liberals, the ACT Greens, and independent MLAs Thomas Emerson and Fiona Carrick called for Ms Berry’s resignation.

Opposition leader Mark Parton MLA said Ms Berry should resign or be dismissed by Chief Minister Andrew Barr MLA, and questioned whether Ms Berry could have been unaware of decisions involving her chief of staff and the director-general.

He said he was concerned about the “extreme influence” the CFMEU had on politics, and called on cabinet minister Michael Pettersson MLA to relinquish his membership of the union. Nor did he believe that MLAs’ staff members should be union members.

The ACT Greens also called for Ms Berry’s resignation. Party leader Jo Clay MLA said that the findings showed “a serious failure of ministerial accountability and leadership and a breach of the Ministerial Code of Conduct. Minister Berry cannot continue in her role…

“Canberrans expect and deserve ministers who are accountable for their actions and the actions of those who serve directly under them. These findings expose a serious breach of the standards of accountability and integrity, and a clear betrayal of the community’s trust.”

Mr Emerson also said Ms Berry should step down.

“It’s difficult to imagine a more egregious breach of [the Ministerial Code of Conduct] than a minister’s most senior staff member engaging in serious corrupt conduct that’s potentially criminal in nature,” Mr Emerson said.

“Minister Berry either directed her Chief of Staff to engage in this conduct, knew about his conduct and failed to stop it, or didn’t know what he was up to at all. Each possibility is deeply concerning, and all are clear breaches of the Ministerial Code of Conduct.”

Ms Carrick supported the calls for Ms Berry to resign.

“These findings against key staff that reported to Education Minister Yvette Berry show that she has failed to meet the necessarily high standards that apply to ACT Government Ministers,” Ms Carrick said.

Master Builders ACT said the findings demonstrated an “abject failure” of the ACT procurement system, and called for an urgent review to improve fairness, transparency, and protection from political, ministerial, union or stakeholder interference.

“The findings of Operation Kingfisher demonstrate that unfairness, and challenges within the ACT procurement system are real,” CEO Anna Neelagama said. “The threat of corruption and undue influence is also very real.

”Because of undue influence, including from the very union that is currently under administration due to widespread corruption, the business offering the best value for money for the Territory lost out.

“This proves what Master Builders ACT has been saying all along: that the procurement system in the ACT as it stands is not delivering value for money for the Territory.”