Education Department’s Nino Napoli pocketed $95,000 in banker schools rort
A dodgy public servant pocketed $95,000 — which he splurged on a luxury hair piece — by awarding contracts to businesses linked to his family.
Police & Courts
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Disgraced Education Department big wig Nino Napoli was secretly recorded revealing he told “a few little porkies” when grilled for 12 hours by corruption watchdog investigators over the “banker schools” funding rort.
IBAC investigators interviewed Napoli in October 2014 following a probe into fraudulent conduct involving the misappropriation of school funds to himself and his family.
Two months later, he told fellow department official John Allman of his lies, including when asked whether he had given “any slings” to his cousin, Carlo Squillacioti.
Fast forward almost five years, and Napoli and Squillacioti faced the County Court on Thursday for a pre-sentence hearing after they both pleaded guilty to conspiring to defraud the department and perverting the course of justice.
Prosecutor Andrew Grant told the court Napoli used his “position of trust” to personally pocket $95,000 — and a $2000 toupee — by awarding contracts and approving payment of dodgy invoices to businesses linked to his family.
In the seven years to January 2014, Mr Grant said 72 false invoices totalling more than $500,000 were paid by the state for works such as printing and IT equipment and consultancy at public schools across Melbourne.
On many occasions the work had never been done.
Squillacioti, as director of a number of companies including Encino, Quill, CT&C and Squillacioti Bros, was among a handful of family members who Napoli provided information to enable them to tender or quote for department contracts on behalf of their companies at lower prices than their competitors.
Mr Grant said Napoli and other department executives would receive “various gifts and benefits” from the scheme.
In May 2009, $2000 was paid to a woman for a hair piece for Napoli and its ongoing upkeep.
“Nino Napoli was not entitled to any payment or benefit for the work he performed for the Schools Finance Unit,” Mr Grant said.
“In addition, he was not entitled to take advantage of his position to award contracts, or approve payments which involved an apparent conflict of interest – unless he declared that conflict of interest.”
Squillacioti’s businesses were linked to nine invoices totalling $114,000, with him personally benefiting from $58,000.
The court heard Napoli and Squillacioti also engaged in discussions to formulate false explanations to the IBAC investigators over the payments.
When Napoli knew IBAC was investigating him, he told other associates to destroy any evidence of the scam and that they had to get their stories straight “or I am shot — gone”.
“Anything that looks shifty, pull it out,” Napoli said.
Napoli also hid items in the garage and roof cavity of his mother’s house to conceal them from investigators.
Defence barrister Jim Shaw, representing both men, said delays in the case and the fact they had suffered extra curial punishment with media publicity about the fraud over several years should be reduce any sentence imposed.
The pre-sentence hearing will continue on August 14.
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