Master Builders ACT has renewed its calls for an urgent review of the Territory’s procurement systems following serious corruption findings linked to the $18.8 million Campbell Primary School Modernisation Project.
Released on 23 July, the ACT Integrity Commission’s Operation Kingfisher report examined whether the project’s procurement, which took place between 2019 and 2020, was conducted with probity and affected by corrupt conduct.
The investigation found the process was improperly influenced, resulting in Lendlease being selected even though local construction company Manteena had been recommended in a finalised but unsigned report prepared by the first tender evaluation team and a completed report prepared by the second.
Former ACT Education Directorate director-general Katy Haire and education minister Yvette Berry’s then-chief of staff, Joshua Ceramidas, were found to have engaged in serious corrupt conduct.
The Commission made no adverse finding against Berry, while neither Manteena nor Lendlease was implicated in any wrongdoing.
According to ABC News, public hearings were told the CFMEU opposed Manteena securing the contract because the company didn’t have an agreement with the union.
An Education Directorate official who was assigned the pseudonym “John Green” told the Commission Haire had informed him that Ceramidas said Manteena was not to be awarded the contract.
Although the Commission criticised Green’s conduct, including dishonest evidence provided to the ACT Auditor-General, it concluded he should be regarded as a whistleblower and that his behaviour didn’t amount to serious corrupt conduct.
The report found Haire and Ceramidas “dishonestly provided a back door” through which the CFMEU’s strategic interests were prioritised over government policy, the ACT community and Manteena’s right to have a fairly considered tender.
It also found the procurement process had been skewed, resulting in substantial additional costs, and that Haire and Ceramidas undertook a “calculated attempt to cover up the truth of what occurred”.
Ceramidas rejected the findings and called for external scrutiny of the Commission’s conduct.
“I reject the findings made by the Commission and regard its conduct throughout the investigation as requiring external scrutiny,” he said in a statement reported by the ABC.
He also alleged the published report differed from the version originally made available to him during the procedural fairness process.
An ACT Public Service spokesperson said appropriate steps would be taken in accordance with the government’s employment obligations, with any further action to be determined through official processes.
ACT Policing also confirmed it had received correspondence from the Integrity Commission relating to Operation Kingfisher and was considering the information.
Master Builders ACT CEO Anna Neelagama said the findings validated longstanding concerns about the fairness and effectiveness of procurement processes in the Territory.
“The findings of Operation Kingfisher demonstrate that unfairness and challenges within the ACT procurement system are real. The threat of corruption and undue influence is also very real,” she said.
“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, and that we need an urgent review of all processes to ensure fairness, transparency and to eliminate corrupt influence.”
The Commission found the procurement process was undermined by improper and undisclosed communications involving Ceramidas, union officials and senior government personnel.
It also concluded the selection of Lendlease involved a significant departure from the stipulated procurement process, with considerations applied that hadn’t been disclosed to tenderers.
The conduct disadvantaged Manteena, benefited the strategic interests of the CFMEU and resulted in a substantial additional cost to the Territory.
Neelagama also criticised the time taken to complete the investigation, which began in March 2021 and included public examinations from 2023.
“The length of time taken to hand down these findings is also unacceptable,” she said.
In its response, Master Builders ACT identified a broad range of reforms it said flowed from the report, including stronger procurement independence, clearer boundaries around the roles of ministers and ministerial staff, full documentation of decisions and safeguards against the introduction of undisclosed assessment criteria.
The association also backed stronger probity oversight, enhanced training for senior officials, greater Government Procurement Board scrutiny, protections for procurement delegates, improved transparency around the Secure Local Jobs Code, and stronger audit and investigation processes.
“Master Builders ACT agrees with the key recommendations from the report, which include strengthening procurement independence to ensure procurement operates free from political, ministerial, union or stakeholder interference,” said Neelagama.
“We also agree with the recommendation to improve transparency around the Secure Local Jobs Code, including compliance being determined by the independent Registrar and preventing directorates from conducting their own unofficial assessments.”
Despite making no findings against Berry, the report prompted Canberra Liberals Leader Mark Parton and ACT Greens Leader Jo Clay to call for her resignation.
Clay cited the ACT Ministerial Code of Conduct and its requirement that ministers accept responsibility for the decisions and actions of their staff.
On 23 July, Berry resigned as Deputy Chief Minister and from her ministerial portfolios, saying she accepted full responsibility for the findings made about staff within her portfolio. However, she will remain in the Legislative Assembly as a backbencher.
“We’re renewing our calls for an urgent review of all aspects of the ACT Procurement process, including whether the officials and advisors are fit and proper,” added Neelagama.
“We’re also urging the acceleration of the much-needed independent review of the Secure Local Jobs Code, and delivery on the Local Industry Participation Plan (LIPP).
“The findings of Operation Kingfisher sadly reflect the abject failure for both builders and taxpayers in the ACT.”
