A former Sydney council employee accused of funnelling construction works to a subcontractor for financial benefit is under the microscope of the corruption watchdog.
The NSW Independent Commission Against Corruption is examining the conduct of ex-Canterbury-Bankstown Council employee Benjamin Webb and former council contractor Pietro Cossu.
Public hearings began on Monday morning, looking at whether the duo used PMLV Invest and Const for subcontracted recruitment services without declaring their financial interest between 2020 and 2022.
In her opening address, Counsel Assisting Georgia Huxley told the commission PMLV was subcontracting workers from two other businesses, but paying them "substantially less" than what they were billing the council.
Ms Huxley said financial records showed PMVL received $7.9 million from their subcontracts but only paid the workers $2.7 million, leaving potential profits of around $4.5 million after insurance and other expenses.
The commission is also pressing claims they favoured General Works and Construction (GWAC) when awarding council contracts for financial benefit.
In one project, an upgrade at the Bankstown Library, GWAC quoted around $15,000 for works, but then sent a second quote later that day of nearly $28,000 after Mr Cossu called the company's director.
Another case saw GWAC resubmit a quote at a lower rate, before Mr Cossu approved around $84,000 of variations throughout the project.
"In a number of the projects (the director) sent Mr Cossu a copy of the proposed quote prior to formally submitting it to council (and) in many of those instances the proposed quote was changed after (the director) had sent it to Mr Cossu and before it had been submitted to council," Ms Huxley told ICAC.
"In some of those instances, the quote was amended or prepared by Mr. Cossu himself."
During a council evaluation process, GWAC failed a financial assessment for a project for reasons including limited trading history and minimal experience delivering on contracts at the stated budget.
"Despite failing the financial assessment, the council awarded the contract to GWAC, and the total contract value was $2,419,493," Ms Huxley said.
Mr Webb ran projects and works at the council, while Mr Cossu was contracted as the construction team leader.
Ms Huxley said council paused all recruitment in the works and projects units in November 2022 after members other than Mr Webb became aware of the subcontracting the PMLV.
Mr Webb then resigned in December 2022.
ICAC is looking at Mr Webb's disclosure of interests while he was a councillor, as he only declared his council salary and family trust as income.
