Three Territorians charged with defrauding Commonwealth

A Northern Territory building company is at the centre of a serious investigation, with authorities alleging a Commonwealth employee exploited his position to influence the allocation of Defence contracts.

Three Northern Territorians have been arrested as part of Operation Panton Hill.

A trio of Northern Territory business figures have been arrested and charged with corruption offences and defrauding the Commonwealth Government of up to $71 million after an eight-month long investigation culminated in multiple raids in the Darwin region.

They were arrested on Friday after the Australian Federal Police, the Department of Defence and the National Anti-Corruption Commission (NACC) executed simultaneous search warrants across the greater Darwin area.

Investigators targeted businesses and homes as part of the operation and seized mobile phones and laptops which will undergo a forensic examination.

Authorities also seized documentation, jewellery, $30,000 in cash, a firearm and a small quantity of an illicit substance believed to be cocaine.

A Commonwealth employee has been charged with two offences.

All three alleged offenders were charged with dishonestly gaining a benefit from a Commonwealth entity, namely the Department of Defence.

If convicted, they each face 10 years imprisonment.

One of the trio is a Commonwealth employee who was further charged with abuse of a public office, which carries a maximum penalty of five years imprisonment.

Police arresting one of the alleged offenders.

Police allege the Commonwealth employee exploited his position to influence the allocation of building contracts to the building company and a subsidiary company owned by the co-conspirators.

All three alleged offenders are expected to face court on Monday, November 17.

An air rifle was seized during one of the raids.

The AFP have confirmed they initiated the joint agency investigation, named Operation Panton Hill, in March 2025 after receiving a report from the Department of Defence about irregularities which had been identified through an internal investigation.

The irregularities in-question involved a Northern Territory business being awarded up to $71 million worth of contracts by defence.

The investigation remains ongoing.

The AFP alleges the Commonwealth employee, his spouse, and directors of a local building company were involved in a conspiracy to influence the awarding of tenders to their company and dishonestly gain benefit from the Commonwealth.

Meanwhile, the operation remains an active investigation.

A canine search was carried out as part of the raid.

AFP Superintendent Greg Davis said the offences, if proven, were a serious breach of trust.

“Defrauding the Commonwealth is a crime that prevents public funds from being used to support the wider Australian community, and we will not hesitate to investigate suspected criminal activity to bring offenders to justice,” he said.

“The AFP has specialised and skilled investigators across the country, and maintains strong partnerships with state, territory and Commonwealth agencies.”

Police arresting one of the alleged offenders. Photo: AFP

Department of Defence Deputy Secretary Governance, John Reid, it was an internal report which prompted defence to tie in with AFP and the National Anti Corruption Commission.

“Public confidence in the integrity of Defence and its personnel is essential,” he said.

“We are committed to ensuring all Defence employees and industry partners are held to the highest standards of integrity.”

A NACC spokesperson also emphasised the threat of corruption.

“The Commonwealth public sector spends tens of billions of dollars on procurements each year, and corruption in these activities can lead to substantial loss and waste, decreased service quality, and reduced confidence in the public sector,” they said.

Originally published as Three Territorians charged with defrauding Commonwealth