The Canberra Institute of Technology has halted its independent internal audit into a nearly $5 million contract awarded to a "complexity and systems thinker" at the direction of the ACT Integrity Commissioner.
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The territory's integrity commission announced last week it was investigating more than $8.5 million in contracts awarded to companies owned by Patrick Hollingworth, including Think Garden and RedRouge Nominees.
A statement from CIT on Monday said the board, executive and staff fully supported the integrity commission's investigation. The board has also agreed to suspend an independent internal audit into the latest $4.99 million contract with Think Garden.
"The board agrees, in accordance with the request of the commission, to pause the independent internal audit planned by the board until the commission's investigation has been completed," the statement said.
But CIT's statement did not mention what this would mean for the employment of CIT chief executive Leanne Cover, who had been directed to take leave until the internal audit had finished.
This audit was due to be completed by July 31. CIT has been contacted for comment about what this will mean for the employment of Ms Cover.
The audit was expected to probe Ms Cover's management of the contracts. The board was also set to conduct a performance appraisal of the CEO.
THE STORY SO FAR:
The board commissioned the internal audit, to be conducted by an independent auditor, after chair Craig Sloan told Skills Minister Chris Steel that the board could not guarantee the contract represented value for money.
The board had made this decision before it was revealed the integrity commission was probing the contracts.
ACT Integrity Commission Michael Adams QC last week made the extraordinary step of publicly confirming an investigation, saying that publicity had contributed to this reason.
Mr Hollingworth has been engaged by CIT over the past five years to help with its organisation transformation.
The contracts have been criticised for having unclear deliverables and terms of references.
It has also emerged that CIT had ignored advice from the ACT government's procurement board about some of the contracts.
The $4.99 million contract, which was signed in March, has been suspended and the board is seeking advice about the possibility of completely terminating the contract.
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