A long-time teacher at the Canberra Institute of Technology (CIT) has written to the ACT government and opposition expressing "deep concern" about a number of controversial consultancy contracts, which he claims have "severely damaged CIT's reputation as both an educator and employer".
In the email, seen by the ABC, the teacher, who has worked at CIT for a number of years, asked ACT Skills Minister Chris Steel and Canberra Liberals leader Elizabeth Lee to refer a series of multi-million-dollar consultancy contracts to the Auditor-General and ask CIT chief executive Leanne Cover to "stand aside pending the outcomes of that review".
"For a truly independent review, this matter should be referred to the Auditor-General and Ms Cover should stand aside pending the outcomes of that review."
Teacher questions use of public money for contracts
The most recent contract awarded to Mr Hollingworth's company Think Garden was signed in March, and is valued at just under $5 million.
That contract is now the subject of an internal audit commissioned by the CIT board, which this week said it could not ensure that the contract "represented value for money", without the review.
In the letter sent to Mr Steel and Ms Lee, the teacher also claimed to speak for a "broad network of colleagues" who he said had lost confidence in the leadership at CIT.
"It is difficult to imagine how an organisation like CIT could justify to ACT taxpayers spending $8.5 million with [larger consultancy] firms … over the period in question, let alone with the companies operated by Mr Hollingworth (which have small numbers of employees and limited capabilities)."
'No idea how this relates to CIT's mission'
The latest $5 million contract was 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.
According to 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 the teacher's letter disputed that claim, saying it was "difficult to see the value created within the organisation" from the contracts awarded to Mr Hollingworth's companies.
In announcing the independent review of the latest contract on Wednesday, the CIT chair said it was within Ms Cover's powers as CEO to undertake procurement processes without the involvement of the board.
Ms Cover has been contacted for comment.
Government wants independent audit, contract placed on hold
ACT Minister for Skills Chris Steel said in a statement that the ACT government expected any public funding for the CIT to be appropriately and efficiently used.
"As the ACT's public provider for skills and training, the ACT government strongly expects the Canberra Institute of Technology (CIT) to use public funds appropriately and efficiently," he said.
"[But], as Minister for Skills, I have the legislated authority to issue only broad directions to the CIT board in relation to exercise of the CIT's functions because it is an independent authority.
Mr Steel again reiterated that he was disappointed in the lack of specificity provided by the CIT board in their response to his questions earlier this week and wanted to see an independent audit of the contract.
"It is very disappointing that the CIT executive cannot, at this time, provide the level of detail the government is seeking. It is also concerning that the CIT board cannot currently provide a clear assurance that the contract represents value for money," he said.
"The specific actions to be taken are the responsibility of the CIT board, but I have made clear [in return correspondence] that the government's preference is to see an independent audit of the contract completed as soon as possible, with the outcomes provided to me by no later than July 31, 2022, and endeavours made in the meantime to place the contract on hold until this audit is complete."
