The board of the Canberra Institute of Technology (CIT) will commission an independent audit into the latest in a series of controversial contracts issued to two consultancy firms, after it revealed it could not currently ensure the $5 million agreement represented value for money.
Last week, the ABC revealed that since 2018, CIT had awarded four contracts, worth almost $8.5 million, to two businesses, Think Garden and Redrouge Nominees Pty Ltd, both owned by mountaineer Patrick Hollingworth.
According to the CIT's tenders, the contracts, funded by taxpayers, were for "strategic guidance and mentoring services to executives and staff" as well to "guide and support CIT through a time of unprecedented change and opportunity".
But Canberra Liberals leader Elizabeth Lee described the contracts as "shrouded in secrecy" and said there were "serious questions" the ACT government needed to answer.
As a result, ACT Skills Minister Chris Steel wrote to the chair of the CIT's board, demanding details of the services provided under the latest $5 million contract and asking the board to ensure that the procurement process was "conducted with the highest levels of probity and impartiality".
In a response to Mr Steel, the CIT board said it was within the CEO's financial delegations to undertake the procurement process, without the involvement of the board, but said it would be commissioning an independent review of the contract against desired outcomes to ensure that "clear milestones" were being achieved.
"In order to remedy this position, the Board has resolved to immediately review the contract in question through an independent internal audit."
in a statement from Mr Steel's office, an ACT government spokeswoman said that while the government welcomed the board's decision, questions still remained.
"We are continuing to seek advice on the most appropriate steps forward in relation to this issue and will have more to say later in the week."
Audit will determine contract's future
The most recent contract awarded to Mr Hollingworth's company Think Garden was signed in March, and is valued at just under $5 million.
It is the second of two consultancy contracts awarded to Think Garden since 2020, while Mr Hollingworth's other company, Redrouge Nominees Pty Ltd, received two consultancy contracts in 2018 and 2021, for $1.22 million and $512,000 respectively.
CIT chief executive Leanne Cover last week told the ABC that all of the contracts were awarded to the best bids the institute had received.
"It's a competitive market," she said.
She said Mr Hollingworth's firms were helping to ensure "that, as an institution, we're adapting and changing our workforce and capability as an organisation to meet the needs of the ACT's vocational education and training sector".
But in his letter to Mr Steel, CIT's chair said the future of the latest contract awarded to Mr Hollingworth's company could be in doubt, depending on the results of the audit.
The ABC has twice contacted Mr Hollingworth for comment but he has not responded.
