By Megan Gorrey
A company linked to a former Sydney council employee and an ex-contractor netted a potential $4 million by supplying dozens of short-term workers through two other recruitment agencies, a corruption inquiry has heard.
The NSW Independent Commission Against Corruption is investigating the conduct of former Canterbury-Bankstown Council employee Benjamin Webb and former contractor Pietro Cossu.
The ICAC announced the inquiry last month.
Operation Mantis is examining allegations Webb and Cossu “partially or dishonestly exercised their official functions” by using or attempting to use a company, PMLV Invest and Const Pty Ltd, for recruitment subcontractor services without disclosing that the pair had a financial interest in the company. The public inquiry, which started on Monday, is focusing on conduct between 2020 and 2022. Neither Webb nor Cossu remain employed by, or contracted to, the council.
The commission is also scrutinising whether the pair partially or dishonestly exercised their official functions to favour a second company, General Works and Construction Pty Ltd, by attempting to influence the awarding of council contracts, or by using the first company to subcontract General Works and Construction council contracts to benefit themselves or others.
In her opening address, counsel assisting the commission Georgia Huxley said Webb managed the council’s works and project unit from February 2020 to December 2022. Cossu was contracted by Randstad to work as a construction team leader at the council, where he reported to Webb, in May 2020. Cossu’s contract was terminated in December 2022.
Huxley said Cossu was listed as PMLV’s director and sole shareholder from October 2013 until mid-2023, when Webb’s father, Ivan, took over as director and shareholder.
“In total, PMLV was paid $690,729.50 by Randstad for the work Mr Cossu was contracted to do at council during the period of his contract,” she said.
The inquiry heard there was evidence Cossu had used PMLV to supply 26 contingent workers to recruitment agencies Randstad and Spinifex Recruiting, who in turn contracted those workers to the council, from 2021 to late 2022.
“Many, if not all, of the workers were paid substantially less than the hourly rate charged to council by Randstad, or Spinifex, by PMLV,” Huxley said.
“This arrangement resulted in a significant profit to PMLV in respect of these contingent workers.”
Financial records showed Randstad and Spinifex paid PMLV more than $7 million between 2021 and 2023. In turn, PMLV paid about $2.6 million of that to the subcontracted workers.
“This leaves potential profits of $4,507,332, from which insurances and other relevant expenses were to be deducted,” Huxley said.
She said the inquiry would “explore the circumstances in which these 26 workers came to be engaged by PMLV and contracted to council, including Mr Cossu and Mr Webb’s knowledge of, and involvement in, these arrangements”.
On November 15, 2022, Webb received an email advising him and others that all recruitment for positions in the council’s works and projects unit was to be placed on hold until further notice.
He resigned a week later.
Huxley said there was no evidence any of the 26 contract workers engaged in corrupt conduct.
Webb and Cossu have yet to provide evidence at the inquiry, in front of Commissioner Helen Murrell, which is expected to last three weeks.
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