New South Wales Anti-Corruption Commission Finds Schools Chief Funnelled Millions to Associates

The New South Wales (NSW) Independent Commission Against Corruption (ICAC) has found that the former chief executive of the state’s school infrastructure agency diverted millions of dollars in public funds to benefit friends and associates, in what it described as “a clear case of cronyism.”

In its final report, the commission said Anthony Manning, former head of School Infrastructure NSW (SINSW), “engaged in corrupt conduct by subverting recruitment and procurement practices,” including directing millions of dollars in spending to consultants and contingent workers with personal connections, such as a cycling group, a “beer and curry group,” and the “Tom, Dick, and Harry breakfast club.”

Two of those associates were also found to have engaged in corrupt conduct.

Manning led SINSW from 2017 to 2024, after previously working at Health Infrastructure NSW from 2009 to 2017.

“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,” Commissioner Paul Lakatos said, noting there was no evidence Manning obtained a personal financial benefit.

Funds Diverted From School Projects

Under Manning’s leadership, SINSW spent $344 million on 1,148 contingent workers between 2017 and 2024.

The commission found much of that spending was drawn from school project funds, obscuring the true scale of recruitment costs.

Twenty-six of these roles were paid at or above deputy secretary level. One of the workers received an annual salary of around $644,000 and was appointed in the role without proper recruitment processes.

The report does not conclude that the workers failed to provide value for money.

“Generally, what is not known is whether these services could have been provided by existing staff or provided for a lesser cost—that is, whether they were value for money,” Lakatos said.

In one case, Manning arranged for a longstanding associate, Martin Berry, to draft the scope of services for a lucrative contract that was ultimately awarded to a consultancy Berry owned.

Berry and his company, Heathwest, secured nine contracts with SINSW worth more than $3 million.

The commission found Berry engaged in corrupt conduct due to his actions during this tender process.

In another case, a consultancy led by a personal associate won an initial joint tender contract worth $145,000 before receiving nearly 30 times that amount in subsequent work, none of which was put to tender.

Associates May Face Charges

Wendy O’Brien, a former human resources contractor at SINSW, was also found to have engaged in corrupt conduct after arranging the blacklisting of a company linked to a whistleblower.

The commission identified 13 instances of corrupt conduct by Manning and outlined eight potential charges, including misconduct in public office and seven counts of giving false evidence during a compulsory examination before ICAC.

It also outlined four potential charges each for Berry and O’Brien, including aiding misconduct in public office, destruction of evidence, and giving false evidence.

Oversight Failures Highlighted

The report was critical of governance within the Department of Education, finding it failed to adequately oversee SINSW or respond to warning signs about its financial practices.

Since the investigation began, SINSW has been replaced by the Department’s School Infrastructure Division.

The commission made 16 recommendations aimed at preventing similar conduct, including auditing funding sources, strengthening oversight systems, improving procurement controls, and better identify red flags.

Lakatos said claims that urgency justified bypassing proper processes did not withstand scrutiny.

“In reality, their conduct resulted in the friends of the chief executive being awarded lengthy contracts, inappropriately paid from funds that had been put aside to build infrastructure for NSW schools,” he said.

“These contracts added up to millions of dollars, and the commission has found that many of them were examples of cronyism.”