‘Clear case of cronyism’: Former school building boss Anthony Manning found corrupt by ICAC

The former head of the NSW school building agency has been referred to the Director of Public Prosecutions after the state’s anti-corruption watchdog found he acted corruptly in a “clear case of cronyism”.

The Independent Commission Against Corruption on Wednesday released the findings of Operation Landan, a long-running investigation into the former chief executive of School Infrastructure NSW, Anthony Manning.

The investigation, which culminated in a marathon public inquiry lasting more than seven weeks last year, examined claims that Manning awarded friends and associates lucrative contracts without disclosing conflicts of interest.

The ICAC said it had found Manning, who held one of the most senior roles in the NSW education system, engaged in corrupt conduct, spending millions of dollars intended for school projects on consultants and contingent workers who were his friends and associates.

Two of those associates – Martin Berry and another former School Infrastructure employee, Wendy O’Brien – were also found to have engaged in corrupt conduct relating to Manning’s actions.

The ICAC said it was “of the opinion that consideration should be given to obtaining the advice of the Director of Public Prosecutions” in relation to all three. It said advice could be obtained from the DPP in relation to an offence of misconduct in public office and giving false evidence to the ICAC against Manning; and aiding, abetting, counselling or procuring misconduct in public office by Berry. The watchdog also recommended the DPP consider whether O’Brien gave false evidence to the ICAC and wilfully destroyed messages to hamper the investigation.

Although the commission did not find that Manning obtained a personal financial benefit, his conduct was “a clear case of cronyism”, ICAC Commissioner Paul Lakatos, SC, said.

“Public money that had been put aside to build and improve schools for NSW children was instead spent on jobs for friends and associates of the chief executive,” he said.

In one instance Berry – a longstanding friend and associate of Manning’s – drafted a tender for a lucrative School Infrastructure contract which his company was ultimately awarded. The ICAC said it found Berry corrupt over that process.

In total, the ICAC heard, Berry and his company Heathwest were paid more than $3 million between 2018 and 2022. In one case, a contract awarded to his company that was originally worth $87,000 ended up costing almost $500,000. It was extended for a further 12 months for another $500,000.

The ICAC investigation came after Manning’s abrupt departure from the role in February 2024.

The Sydney Morning Herald first reported his referral to the watchdog, as well as concerns over an axed $40 million school building contract awarded by the agency.

At the heart of the ICAC inquiry were four contractors, and their relationship with the former school building boss; Berry, Stuart Suthern-Brunt, Michael Palassis and Kathy Jones. There were no findings against Suthern-Brunt, Palassis or Jones.

In total, the four contractors and their associated companies earned some $18 million from School Infrastructure during Manning’s time at the agency. All four had connections to Manning outside of School Infrastructure.

Manning had known Berry since 2006 and organised his buck’s party. He took spin and yoga classes with Suthern-Brunt, and once described Jones as his “communications fairy godmother”.

The ICAC also heard evidence money flowed to associates of Manning’s, including members of his “Tom, Dick and Harry Breakfast Club” and “Cycling” and “Beer and Curry” groups.

In one case, a consultancy also headed by a friend of Manning’s won an initial joint-tender contract worth $145,000 and was then paid nearly 30 times as much for subsequent work which did not go to market.

Manning was the first chief executive of School Infrastructure NSW, a government agency set up by the then Coalition government in 2017 to deliver and maintain public schools.

The ICAC heard evidence that when the agency was established, the government held doubts over the Education Department’s ability to deliver on an ambitious school building agenda.

Rob Stokes, who was education minister when the agency was set up but was not accused of any wrongdoing, described a feeling of “exasperation” with the department over issues such as a new high-rise school, Arthur Phillip in Parramatta, which was plagued by cost blow-outs and delays.

It led to a culture where consultants within the agency earned significant salaries. Murat Dizdar, the current education secretary, gave evidence 26 people were on salaries of more than $500,000 a year when he took over in 2023, and the ICAC heard that some 1400 consultants were paid $344 million over seven years.

In a statement, Education Minister Prue Car took aim at the agency and said the government had “worked hard to reform School Infrastructure, ensuring schools are now being built where they are needed, including in the fast-growing suburbs of north-west and south-west Sydney”.

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