Ballarat Council manager Lukas Carey convicted for commissions
A Darebin Council employee helped secure more than $16 million in contracts for personal gain, Victoria’s anti-corruption commission has determined. The investigation found the manager was receiving cash, gifts and other kickbacks for his efforts.
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A corruption investigation into Darebin Council has found one employee helped a contractor secure more than $16 million in work for personal gain.
An investigation from the Independent Broad-based Anti-corruption Commission, tabled in state parliament today, found the project manager was receiving cash, gifts and other benefits while helping contractors secure work.
IBAC commenced Operation Dorset in 2015, and determined the contractor known as ‘Company B’ received $13.8 million in invoices from 2002 to 2015, $5.9 million more than the next highest competitor.
Company B was on a panel of four companies appointed for minor civil works, which were able to be allocated without justification provided the works were valued at less than $50,000.
IBAC analysed payments from 2002 to 2015 and found 54 per cent of all invoices at $50,000 or less were allocated to Company B.
The investigation also found the manager amended invoices submitted by contractors to inflate previous quotes and tenders, failed to declare his associations with a number of contractors to the council and failed to comply with council policies.
In 2017 the project manager resigned while under investigation.
IBAC commissioner Robert Redlich said the report highlighted a range of corruption risks which were likely to be faced by most, if not all councils in Victoria.
“Public sector corruption is not a victimless crime. It wastes taxes and rates that should be used to operate and maintain Victoria’s schools, hospitals, roads and other vital public services and projects,” he said.
A separate IBAC investigation also in the report found former Ballarat Council manager Lukas Carey played a role in awarding contracts worth $55,885 to a company owned and operated by his wife in 2015.
Mr Carey also played a role in helping three associates gain a financial advantage and received secret commissions totalling $47,745.
In 2017, he was convicted of a range of offences, sentenced to three years’ jail and ordered to repay $31,200.
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Three other people, including his wife, pleaded guilty to other charges.
IBAC made recommendations for both Darebin Council and Ballarat Council chief executives to advise how they had strengthened their procurement policies.
They also recommended Local Government Victoria develop a code of conduct for suppliers to Victorian councils outlining expectations of declaring conflicts of interest or suspected misconduct.
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In response to the report, Darebin Council chief executive Sue Wilkinson wrote a letter outlining a number of reforms designed to prevent corruption, including segregation of duties, a new internal auditor and the drafting of a new procurement policy.
“Darebin City Council is deeply committed to ensuring that corruption is both mitigated and eliminated across our organisation,” Ms Wilkinson said.
“I am confident that a number of significant reforms have been subsequently implemented to council systems and processes that have substantially reduced our risks of procurement related corruption.”