Darwin trio charged with corruption and fraud offences after probe into $71m Department of Defence contracts
Authorities have not ruled out further arrests after three Darwin residents were charged with corruption and fraud offenses related to Department of Defense contracts worth more than $71 million.
The AFP, the Ministry of Defense and the NACC carried out sweeping raids in the Top End city on Friday following an eight-month investigation called Operation Panton Hill.
Announcing details of the investigation on Saturday morning, AFP Commander Naomi Binstead said three people had been arrested in connection with alleged multi-million dollar fraud and corruption in the Northern Territory.
“Investigations into Operation Panton Hill are ongoing and further arrests or charges are possible,” he said.
“Police allege a Commonwealth employee, his wife and directors of a local company conspired to influence the awarding of Defense contracts worth more than $71 million.”
According to AFP, police received a suspected criminal report from the Ministry of Defense in March about “identified irregularities” in the award of a contract to a local construction company.
A Department of Defense employee allegedly exploited his position to influence the allocation of construction contracts.
Three men have been charged and will appear in Darwin Local Court on Monday.
During the raids, detectives allegedly seized electronic devices, documents, a firearm, jewelry, $30,000 and a small amount of substances suspected to be cocaine.
Deputy Minister of Defense for Governance John Reid said the Department referred the matter to the AFP and NACC after an internal report raised allegations of corruption involving a Defense employee and Defense suppliers.
“It is very important that the public has confidence in the integrity of Defense and its personnel,” he said.
“We are committed to ensuring that all Defense employees and industry partners are held to the highest standards of integrity.”
Investigating allegations of corruption in complex procurement was a “strategic priority” for the Commission, an NACC spokesman said.
“The Commonwealth public sector spends tens of billions of dollars on procurement each year, and corruption in these activities can lead to significant loss and waste, reduced quality of services and reduced confidence in the public sector,” the spokesman said.
Each of the three men is accused of dishonestly obtaining benefits from a Commonwealth agency, while the Defense employee is also charged with abuse of public office.
The investigation is still ongoing.
