CIT board chair Kate Lundy: “We hope to be putting the reputational issues behind us.” Photo: Ian Bushnell.
CIT board chair Kate Lundy has welcomed the ‘shocking’ second integrity report on the contracts scandal as another step to drawing a line under this affair, but remains as mystified as anyone about why former CEO Leanne Cover and then-Executive Director of Education Andrew Whale acted corruptly.
The ACT Integrity Commission’s second Special Report for Operation Luna found the pair concocted contract conditions providing for substantial amounts to be paid in advance of the services.
But it failed to pinpoint the motivation for doing so, saying the pair were of good character and did not have personal relationships with ”systems thinker” Patrick Hollingworth and his company Redrouge Nominees.
Ms Lundy said she assumed the ACTIC would provide a final report that may yet shed light on this, but hoped that CIT, under its new CEO Dr Margot McNeill, could get on with delivering the skills the ACT so urgently needed.
She said CIT itself had moved on, with a new executive, measures in place to ensure such a scandal could not happen again and a new campus in Woden.
The CIT board and the interim executive worked immediately to strengthen governance, financial arrangements and processes, and a ministerial direction meant further work to continue doing so, including an internal integrity committee.
“For example, we’ve reduced the delegations available to our executive for board approval to $1 million for goods and services and for consultants, $500,000 so there can never be a contract signed above those amounts without board approval,” Ms Lundy said.
She said CIT would also take on board whatever learnings there may be from this and any subsequent report.
But Ms Lundy conceded that the affair had damaged CIT’s reputation.
“I empathise greatly with staff and all those associated with the CIT community, the concern that these reports caused them and all of us, and it’s good to get past it,” she said.
Ms Lundy said CIT had also rebuilt capacity with its new executive team so it could grow enrolments, deliver courses and not have to look to outside consultants to support that work.
She acknowledged budget pressures, but if enrolments grew, so would revenues.
“In the next year, we hope to be putting the reputational issues behind us,” Ms Lundy said.
The ACT Government acknowledged the seriousness of the matters examined and reaffirmed its expectation that all ACT public sector entities uphold the highest standards of integrity, accountability and public value in their procurement and governance processes.
A government spokesperson said CIT had already taken significant steps to address the issues raised during this inquiry.
“The executive leadership and board of CIT have undertaken work to strengthen governance, rebuild public trust, and ensure the organisation remains focused on its core mission,” the spokesperson said.
“CIT is now well positioned to move forward and continue delivering the high-quality education and training that Canberrans expect and deserve.”
Opposition Leader Leanne Castley said that while many questions may never be answered, this investigation had demonstrated the value of having an independent corruption watchdog in the ACT.
Shadow Minister for Business, Arts, Creative Industries and Skills James Milligan said the Canberra Liberals had been shining a light on these serious accusations of misconduct and corruption for years.
“These systemic failings of the ACT Government have continued to add up to millions of taxpayer dollars that should otherwise be invested in students, through courses and other resources,” he said.
“CIT is meant to provide opportunities for vocational education and training, to equip students of all ages with the necessary skills to achieve their career aspirations.”
Operation Luna has been underway since May 2022.
