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ABC News
ABC News
National

ACT Integrity Commission tipped off about Canberra Institute of Techology's vague consulting contracts last year

The ACT's corruption watchdog says it first became aware of unusual consulting contracts at the Canberra Institute of Technology (CIT) more than a year ago.

The ABC revealed earlier this year that the education provider had commissioned millions of dollars in leadership advice from two businesses owned by mountaineer Patrick Hollingworth.

Mr Hollingworth's firms, Think Garden and Redrouge Nominees, had won about $8.5 million in deals since 2018, though the ACT government said it struggled to understand what the vaguely worded contracts were for.

The latest contract, valued at $5 million, was signed in March this year, about four months after the ACT Integrity Commission received a complaint about the deals.

"The first complaint pertaining to the matters being investigated under Operation LUNA was received by the commission in late November 2021," the commission said in a statement to the ABC.

It said it took about five months to assess that complaint and decide to proceed with a formal investigation of the CIT contracts.

The commission began this investigation in May, and the Canberra Liberals began publicly questioning the procurements in June.

$5 million contract's future in question

Mr Hollingworth describes himself as a "complexity and systems thinker".

Tender documents say his businesses' contracts were for "strategic guidance and mentoring services to executives and staff", and to "guide and support [the] CIT through a time of unprecedented change and opportunity".

In June, the CIT's board suspended the latest and most contentious contract, and directed chief executive Leanne Cover to stand aside until an internal investigation was completed.

The ACT minister with oversight of the CIT, Chris Steel, also released documents in June showing the institute had ignored government concerns about the contracts.

The commission said it planned to produce an interim report in the first quarter of 2023, "once the required statutory processes for consultation with impacted parties occurs".

"These processes require a minimum of six weeks' consultation time," it said.

The CIT was asked whether the $5 million contract it suspended in June had since been cancelled, but it did not respond.

Mr Hollingworth has not responded to several requests for comment.

A CIT spokesman confirmed Ms Cover remained on paid leave "on a month-to-month basis at the direction of the CIT board".

He said it was inappropriate to comment further until the investigations were concluded.

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