The NSW Independent Commission Against Corruption (ICAC) has found that former Canterbury-Bankstown Council (Council) Works and Projects Unit manager Benjamin Webb engaged in corrupt conduct by receiving about $208,000 in benefits from close friend and Council contractor, Pietro Cossu, whose business reaped more than $4.5 million in gross profit after Mr Webb favoured it in a recruitment scheme to provide contract workers to Council.
In a report released today, Investigation into the conduct of a then manager and a former contractor at Canterbury-Bankstown Council (Operation Mantis), the Commission finds that Mr Cossu also engaged in corrupt conduct, by providing approximately $208,000 to Mr Webb, in return for Mr Webb misusing his public official functions to engage and retain candidates through Mr Cossu's business.
Mr Webb recruited Mr Cossu on a temporary contract in 2020 to provide project-management services to Council; neither disclosed their close friendship to Council. Between February 2021 and September 2022, Mr Cossu's company, PMLV Invest and Const Pty Ltd (PMLV), provided 26 contingent workers to Council through the recruitment agencies Council used to hire such workers. Council had no such subcontractor arrangement with PMLV, and the workers received significantly less payment than they would have had they been engaged directly by the recruitment agency.
Mr Webb oversaw the hiring for his unit and approved the engagement of the PMLV workers. He and Mr Cossu recruited workers who were generally inexperienced in the Australian workforce and who would generally accept low wages to gain experience. PMLV received a total of $7,184,938, from which it paid the 26 workers a total of $2,677,605, resulting in a gross profit of $4,507,332, from which insurances and other expenses were deducted.
In making the corrupt conduct findings against Mr Webb, the Commission finds he misused his public official functions to facilitate the engagement of the workers through PMLV, in return for which he received approximately $208,000 from Mr Cossu. He also breached Council's Code of Conduct by submitting false or misleading written returns of interest in which he failed to disclose: the benefits he received from Mr Cossu and PMLV; his bankruptcy status; and the receipt of a gift or benefit.
Mr Cossu was also involved in another arrangement – this time focused on procurement – with his friend Jeremy Clarke, the director of General Works and Construction Pty Ltd (GWAC). From July 2020 to November 2022, GWAC was awarded numerous Council projects with assistance from Mr Cossu that included helping Mr Clarke to price jobs (sometimes by providing him with information about other contractors' quotes or tenders), participating on evaluation panels that recommended the award of work to GWAC; and utilising PMLV as an intermediary between GWAC and a concrete culverts supplier which enabled GWAC to bid for a valuable stormwater upgrade project.
The Commission finds Mr Cossu and Mr Clarke engaged in corrupt conduct through this procurement arrangement, in which Mr Clarke paid PMLV over $2 million in return for that assistance to win Council projects (including through variations) by utilising the information and opportunities available to Mr Cossu through his position at Council.
While the Commission acknowledges that Council has recently taken steps to improve its procedures, the Commission's examination of Council's control framework that allowed the corrupt conduct to occur showed systemic shortcomings in the implementation of processes and policy frameworks for recruitment and procurement.
The Operation Mantis report notes that a "most serious and obvious deficiency in Council was the failure to perform due diligence". This included hiring Mr Webb, despite him presenting false qualifications and giving him substantial financial discretion despite him being an undischarged bankrupt.
The Commission has made 19 corruption prevention recommendations to Council including that it implements proper screening of prospective employees, that it develops robust procurement and project management processes to ensure that the public gets value for money, and that it adopts better practice guidelines on contingent workforce management.
The Commission seeks the advice of the Director of Public Prosecutions (DPP) on whether any prosecution should be commenced. The DPP determines whether any criminal charges can be laid and conducts all prosecutions. The Commission is of the opinion that consideration should be given to obtaining the advice of the DPP about the prosecution of Mr Webb, for the criminal offence of corruptly receiving financial benefits, Mr Cossu for the criminal offences of corruptly receiving and giving financial benefits, and Mr Clarke for the criminal offence of corruptly giving financial benefits.
Council's general manager made a report to the Commission on 17 November 2022, under section 11 of the ICAC Act, concerning the engagement of temporary staff through PMLV in circumstances where Mr Cossu had not made any declaration to Council about his interest in that company. On 6 December 2022, the Commission determined to conduct a preliminary investigation and expanded the investigation to include the award of Council projects to GWAC. This matter reiterates the importance of vigilance and reporting to the Commission.
The Commission held a public inquiry, as part of this investigation, over 11 sitting days between 3 and 20 June 2024. Commissioner the Hon Helen Murrell SC presided at the public inquiry at which 12 witnesses gave evidence. Final substantive submissions were received by 2 August 2024, signalling completion of the public inquiry period.
