Steel slams 'egregious breach of public trust' in CIT integrity report

Mr Steel said the report would send a strong message to all senior executives in the ACT public service that corrupt behaviour would attract severe consequences.

A report from the ACT Integrity Commission found Mr Steel was misled by Leanne Cover about the contracts with "complexity and systems thinker" Patrick Hollingworth.

"The commission found that my office effectively told the former CEO that further contracts with Mr Hollingworth would not 'pass the pub test'," Mr Steel said.

Mr Steel said the breach of trust should send a strong message to senior executives in the ACT public service and statutory authorities that the government has high expectations.

"Or there could be severe consequences through a finding of corruption," he said.

The investigation showed Mr Steel and his chief of staff had expressed their concerns about CIT entering into another contract with Mr Hollingworth's entities in December 2021.

But the investigation showed Ms Cover did not inform the board of this phone call. The institute would go on to enter into a $4,999,990 contract in March 2022.

It found a "pattern of concealment" about proposed procurements which resulted in Mr Hollingworth being awarded contracts. He was awarded multiple contracts over a five-year period totalling more than $8.5 million.

"These acts of dishonesty and concealment, which occurred over a period of approximately a year, amounted to serious corrupt conduct by the former CEO," Mr Steel said.

"It is an egregious breach of public trust that, when scrutinised by myself, my office, and the government procurement board, the former CEO acted so dishonestly and in a pattern of concealment from the CIT board."

Mr Steel said the conduct affected the reputation of the CIT and had led to substantial adverse financial consequences. He has written to the CIT board asking for an update on efforts to recover public money spent during the course of this matter.

The CIT board said in a statement they had been worked to strengthen internal processes, including greater scrutiny on financial decisions made by the chief executive.

CIT board chair Kate Lundy welcomed the release of the report, saying the board had given careful consideration to its findings.

She said this would end a period of uncertainty for CIT.

I would like to acknowledge the work, dedication and drive of all CIT staff and educators, who are integral to the work of CIT," Ms Lundy said.

"We continue to look at ways of further supporting our staff and educators to ensure that they can continue to provide high quality education services to the people of the ACT."