Public hearings into the allegations began in the Independent Commission Against Corruption (ICAC) this morning, with an opening address from counsel assisting Steve Campbell SC.
Mr Campbell told the hearing the ICAC launched the biggest investigation in its 22-year history after an "anonymous and disturbing" tip-off to Bathurst Council, in the state's central west, in November 2008.
He said the council was told via email that it had been ripped off to the tune of hundreds of thousands of dollars through false orders placed with suppliers by a former employee.
Mr Campbell said that employee was storeman Geoffrey Hadley, who had connections with a man named Robin Newman.
The counsel assisting said Hadley defrauded his employer through false orders for goods and services that were never delivered, as well as "good old fashioned overcharging".
He told the hearing the fraud must have appalled the people of Bathurst and of NSW.
Mr Campbell said Hadley and Newman are serving jail terms after pleading guilty to defrauding the council of more than $700,000 each.
But he also said the truth may be much worse, because the ICAC has good reason to believe the total value of Hadley's fraud is "an astounding $1,423,861.92".
"It takes a while to sink in," Mr Campbell told the hearing.
He said in response to the scandal the ICAC launched an investigation which has uncovered evidence implicating officials at 88 local councils and 22 other government authorities.
But he said what the investigation had identified was just "the tip of an iceberg".
Mr Campbell told the inquiry council staff have been detected receiving holidays, football tickets, Parker pens, Liquorland and Harvey Norman vouchers and electronics such as iPods in exchange for contracts with suppliers.
In his opening statement, counsel assisting ICAC commissioner David Ipp, Steve Campbell, said the wrongdoing uncovered was so pervasive the commission could not be satisfied it had done more than “identify the tip of an iceberg”.
The gifts were allegedly given by a small number of companies as “kickbacks” to encourage the placement of more or bigger orders.
“The public official, often on a modest income, appreciates the benefit and obliges, placing further orders whether the goods are required by his employer or not; whether the price is fair or not; and eventually whether all of the goods, or even any of them are delivered, or not,” Mr Campbell said.
In one case an official from Bathurst Regional Council allegedly processed invoices for over 400km of road safety mesh - enough to line the Great Western Highway between Bathurst and Sydney and back.
Another official from Yass Valley Council allegedly obtained 4000 highway guide posts - enough to line the Hume Highway between Yass and Sydney three times over, the inquiry was told.
Mr Campbell told the hearing the ICAC launched the biggest investigation in its 22-year history after an "anonymous and disturbing" tip-off to Bathurst Council, in the state's central west, in November 2008.
He said the council was told via email that it had been ripped off to the tune of hundreds of thousands of dollars through false orders placed with suppliers by a former employee.
Mr Campbell said that employee was storeman Geoffrey Hadley, who had connections with a man named Robin Newman.
The counsel assisting said Hadley defrauded his employer through false orders for goods and services that were never delivered, as well as "good old fashioned overcharging".
He told the hearing the fraud must have appalled the people of Bathurst and of NSW.
Mr Campbell said Hadley and Newman are serving jail terms after pleading guilty to defrauding the council of more than $700,000 each.
But he also said the truth may be much worse, because the ICAC has good reason to believe the total value of Hadley's fraud is "an astounding $1,423,861.92".
"It takes a while to sink in," Mr Campbell told the hearing.
He said in response to the scandal the ICAC launched an investigation which has uncovered evidence implicating officials at 88 local councils and 22 other government authorities.
But he said what the investigation had identified was just "the tip of an iceberg".
Mr Campbell told the inquiry council staff have been detected receiving holidays, football tickets, Parker pens, Liquorland and Harvey Norman vouchers and electronics such as iPods in exchange for contracts with suppliers.
In his opening statement, counsel assisting ICAC commissioner David Ipp, Steve Campbell, said the wrongdoing uncovered was so pervasive the commission could not be satisfied it had done more than “identify the tip of an iceberg”.
The gifts were allegedly given by a small number of companies as “kickbacks” to encourage the placement of more or bigger orders.
“The public official, often on a modest income, appreciates the benefit and obliges, placing further orders whether the goods are required by his employer or not; whether the price is fair or not; and eventually whether all of the goods, or even any of them are delivered, or not,” Mr Campbell said.
In one case an official from Bathurst Regional Council allegedly processed invoices for over 400km of road safety mesh - enough to line the Great Western Highway between Bathurst and Sydney and back.
Another official from Yass Valley Council allegedly obtained 4000 highway guide posts - enough to line the Hume Highway between Yass and Sydney three times over, the inquiry was told.
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