‘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 on Wednesday 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.

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.”

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. All four had personal and professional relationships with him.

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”.

In 2017, he and Palassis were part of a group trying to develop a “cancer wellness” hospital in China close to the time his company, Paxon, were bidding along with PwC to win a tender with the agency.

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

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.

Running through the inquiry was a sense that Manning believed he had been brought in to shake things up.

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.

Also key to the investigation was whether Manning and others engaged in “reprisal action” against staff who raised concerns.

Andrea Patrick, a senior procurement officer at the department who was fired by Manning, alleged that at a meeting in 2017 he “made a comment along the lines of ‘I don’t need you or services or policies’.” She claimed Manning told her he had a “direct line” to ministers and said words to the effect of “if I need to do things different, I just pick up the phone to them, and they’ll sort it”.

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