Education Minister Jeremy Rockliff reveals resignation of TasTafe boss Stephen Conway

TASTAFE has been rocked by an Integrity Commission report detailing allegations that favouritism led to exorbitant pay rises, bonuses and perks for select executives.

TasTAFE CEO Stephen Conway speaking at the opening of the Sino-Australian VET forum at the Hotel Grand Chancellor. Picture: SAM ROSEWARNE

TASTAFE has been rocked by an Integrity Commission report detailing allegations that favouritism led to exorbitant pay rises, bonuses and perks for select executives.

TasTAFE chief executive Stephen Conway has resigned in the wake of the report which was tabled in State Parliament.

In an investigation dubbed Operation Black, the Integrity Commission examined a complaint that Mr Conway allegedly provided favourable treatment to a friend, deputy chief executive Lori Hocking, who he had previously worked with in Adelaide.

The report identified possible evidence to support the allegations against Mr Conway, including Ms Hocking’s progression from a base salary of $121,318 to $176,167 in about 12 months and the provision to Ms Hocking of an “incentive payment scheme” worth about $30,000 in benefits.

The report found that the allegation that Ms Hocking “adopted Mr Conway’s practice of favouring certain individuals” was supported by evidence that Ms Hocking reviewed and edited the application of a friend for a senior management position for which she was responsible for establishing the recruitment process.

“During the Commission’s assessment of the complaint, additional allegations of potential misconduct were identified and investigated,” the report said.

The report found Mr Conway had a conflict of interest due to his close friendship with Ms Hocking which he failed to declare or properly manage.

The report found it was “open to conclude” that the practice of using Tasmanian Government cards for entertainment expenses without approval was “widespread among the senior executive level of TasTAFE.”

The Integrity Commission referred its report to Premier Will Hodgman.

Deputy Premier Jeremy Rockliff told Parliament Mr Conway had been advised by the Government he would not be reappointed when his contract expired, and Mr Conway instead indicated he would resign.

Mr Rockliff said a code of conduct investigation had been initiated, however given the resignation the investigation was unlikely to proceed.

He said he would oversee an independent audit of TasTAFE recruitment processes, and a new induction process would be developed.

“Whilst these matters are serious, there has been no suggestion by the Integrity Commission that the matters are of a criminal nature,” Mr Rockliff said.

Nick May is acting TasTAFE chief executive, and an interim chief executive will be appointed.

Mr Conway was contacted for comment.