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The Canberra Times
The Canberra Times
Sarah Lansdown

Education boss launched legal action to end integrity investigation

The head of the ACT Education Directorate launched a legal bid to shut down a corruption investigation examining her and other directorate officials.

Director-general Katy Haire is suing the ACT Integrity Commission and integrity commissioner Michael Adams KC, alleging there is an apprehended bias in the investigation into the procurement for an expansion of Campbell Primary School.

Ms Haire wanted to stop the commission from completing its investigation, preparing a report and holding public hearings into the matter, court documents obtained by The Canberra Times reveal.

Ms Haire's lawyers were contacted but did not respond by deadline.

The commission heard during its investigation that Ms Haire signed off on Lendlease for the expansion tender despite Manteena presenting a better and cheaper design according to the procurement criteria.

During public examinations into the matter, a directorate official, given the pseudonym John Green, said he wrote a brief for Ms Haire recommending she go against the evaluations of the procurement team.

Mr Green alleged this was because of pressure from the CFMEU to select Lendlease over Manteena, as the latter did not have a union-endorsed enterprise agreement.

Ms Haire alleged the commissioner had an "apprehended bias" and a "breach of the rule of natural justice [was] happening or is likely to happen in relation to that conduct", court documents show.

It was alleged "a fair minded reasonably informed lay observer might consider that the [commissioner] is not or might not approach those tasks with a sufficient level of impartiality and is not open to persuasion". The case was lodged in September last year, ahead of Ms Haire appearing at her first public hearing later that month on the 28th.

The integrity investigation continued despite Ms Haire's legal action.

Documents showed Ms Haire had alleged she had not been given a "reasonable opportunity to test the evidence put by Mr John Green and concerning the plaintiff".

An affidavit lodged by Ms Haire's lawyer showed multiple attempts to obtain videos and transcripts of private examinations of Mr Green over several months.

A redacted transcript was sent on August 3, before hearings began, but no video was provided.

Ms Haire's lawyers also wanted to cross-examine Mr Green but the commissioner initially refused this request. Her lawyers cross-examined Mr Green in December.

"[The commissioner's] cross examination decisions involved an error of law or were an improper exercise of the defendant's power under the Integrity Commission Act 2018 in that the further conduct of public examinations will not comply with the rules of natural justice and procedural fairness in a public examination which is a mandatory requirement," court documents said.

Education Directorate director-general Katy Haire walking into the ACT Integrity Commission building on September 29, 2023. Picture by Karleen Minney

Legal representatives for the Education Minister's former chief of staff, Joshua Ceramidas, were granted permission to cross-examine Mr Green. This was despite Mr Ceramidas not being called to attend the public examinations, only private hearings.

Court documents show Ms Haire also pushed to have her identity suppressed during public hearings.

The Supreme Court hearing was first set to take place in October 2023 but has been pushed back several times. A hearing is now scheduled for November 25, 2024.

Opposition Leader Elizabeth Lee expressed frustration at the time taken to complete the investigation and the court action.

"Accusations of bias against the Integrity Commissioner must be treated very seriously and expeditiously," she said.

"For this matter to be listed one month after the ACT election in October this year - 14 months after the application was filed - is extraordinary.

"The Integrity Commission was set up to ensure that serious allegations like we have seen with the Campbell Primary School modernisation project procurement and the CIT contracts are investigated at arm's length of the government and it is essential that there is no undue intervention of the commission's investigations."

Court documents show Ms Haire's lawyers are expected to submit an amended originating application. It is unclear whether they are still seeking to stop the investigation.

A spokeswoman for the ACT Integrity Commission confirmed the investigation was continuing but was unclear about whether the final report will be released before the November court hearing.

"As the respondent to this matter, the commission has engaged external legal counsel to act on its behalf," the spokeswoman said.

"It is open to any party to take legal action in respect of the commission's processes and this is what is occurring in this Supreme Court action."

The final public hearings in the commission's investigation have also been pushed back several times. During the final stage of hearings lawyers for affected parties will be able to address the commissioner about their respective cases.

This was initially set to take place from March 12 but has been postponed on three occasions. It was pushed back until April 15 and then May 13.

It now won't take place until July 8, with the commission revealing the latest postponement the week before the May 13 hearings were set to begin.

"The postponement will ensure all relevant parties have adequate time to consider the submission produced by Counsel Assisting the Integrity Commissioner and that counsel will be available to make public submissions in response if desired," the commission said in a statement.

The commission's spokeswoman said the court action was not the reason for the delays to the final hearings.

As part of the investigation, the commission held public hearings for the first time.

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