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Victorian Department of Education and Training Ultranet project : the IBAC investigation.

IBAC is investigating whether Victorian education department employees received gifts, travel and job opportunities due to their involvement in Ultranet, and whether they bought shares in the company that won the multi-million dollar IT contract.

The Ultranet was supposed to connect teachers, parents and students, but it was rarely used after its rollout in 2010 due to technical issues.

The costs blew out to $240 million.

It was abolished in 2013.

 

 Ultranet-linked company handed $105m education department contract, Henrietta Cook and Timna Jacks, The Age, 2 March 2016

Julie Baker was appointed assistant regional director of the Loddon Mallee Region in 2006 or 2007.

Mr Lake was the Victorian Department of Education (DET) regional director of the Loddon Mallee Region.

 

There was a state-wide advertisment for an assistant regional director.

Julie Baker applied for the position.

She was interviewed by a panel.

Mr Lake was on the interview panel.

Julie Baker was recommended for the position.

 

In February 2016 Mr Lake advised IBAC that Ms Baker was his current domestic partner.

 

 

Transcript of the IBAC investigation into the Victorian Department of Education and Training (DET) Ultranet project, pages 1103 - 1104

Between 19 December 2006 and 5 June 2008

Mr Lake was on the DET Ultranet project board.

He attended 16 board meetings.

1109

Mr Lake rejoined the Ultranet project board in 2008

Mr Lake rejoined the reconstituted Ultranet project board.

The contract for the Ultranet project was signed either just before or just after Mr Lake joined the board.

Before Mr Lake joined the board he had never heard of CSG.

 

Darrell Fraser, Anthony Bugden, Chris Bennett, Erle Bourke, Mr Lake (and others) were on the Ultranet project board.

 

The importance of family :

Anthony Bugden was Mr Lake's former brother-in-law.

He had been Mr Lake's former brother-in-law for 32 years.

Mr Bugden had been the senior officer in DET Human Relations.

 

1104 -1109

Mr Allman buys CSG shares on 25 May 2009.

Mr Allman bought 12,300 shares in CSG Limited, the company that won the Ultranet contract, for less than $10,000.

He did this just two days before ASIC publicly announced the contract.

 

Mr Allman also advised his "best friend" Ian Morrison to buy the shares after the announcement.

 

Darrell Fraser 'broke every fucking rule in the book', IBAC inquiry heard, Timna Jacks, The Age, 15 March 2016

The first re-constituted Ultranet board meeting was on 15 July 2009.

Mr Lake attended the first board meeting of the re-constituted Ultranet board.

He attended the meeting via telephone.

The meeting was chaired by Tony Bugden.

1109 -1110

The DET Ultranet board met for the second time on 29 July 2009.

The DET Ultranet board met for the second time.

CSG Services attended the meeting via telephone.

Mr Lake attended the meeting by telephone.

1114

Julie Baker bought CSG shares on 31 July 2009.

Ms Julie Baker bought 9710 CSG shares in her own name for $10,500.

Mr Lake owed Ms Baker $10,500 for furniture and air fares.

He purchased a bank cheque payable to EL & Baillieu Stockbroking for $10,500.

Mr Lake withdrew the money from his superannuation account.

1161

Mr Lake bought CSG shares on 11 August 2009.

Mr Lake withdrew $109,567.96 from his superannuation fund.

Some days later he invested $100,000 in CSG.

Mr lake was interviewed by KPMG on 13 May 2011.

Mr Lake was interviewed by KPMG on behalf of the Department of Education in respect to possibly corrupt purchases in shares.

1167

Mr Lake told KPMG that someone from the Ultranet project board had said that the shares had moved from 40 cents to $1.09.

1168

Julie Baker was served with a summons to appear before IBAC in early January 2015.

Mr Lake in Saudi Arabia phoned Ms Julie Baker in Australia.

While he was talking to Ms Baker she was served with a summons to appear before IBAC. 

Ms Baker was very upset.

 

Mr Baker phoned Mr Fraser.

Mr Lake asked Mr Fraser to meet him somewhere quiet to discuss something confidential.

1155-1157

"Every public servant has a price and we should find that price".

ASG Group's chief executive, Geoff Lewis, was questioned at an IBAC hearing about a $400,000 payment his company made to a consultancy firm owned by Frank Aloisio, a former teacher who had "strong relationships"  with top education department officials.

Counsel assisting IBAC , Ian Hill, QC, asked Mr Lewis whether ASG would have bid for the education department's Ultranet tender if it did not have the "Aloisio expertise".

"I doubt it, but I do not not know," Mr Lewis responded. 

 

 

His former ASG colleague, Greg Tolefe, has alleged at the inquiry that Mr Lewis told him "every public servant has a price and we should find that price". 

Mr Lewis denied saying this.

Mr Tolefe previously pleaded guilty to fraud.

 

Ultranet-linked company handed $105m education department contract, Henrietta Cook and Timna Jacks, The Age, 2 March 2016

ASG win a $105 million Victorian education department contract on 28 February 2016.

The ASG Group announced that it had signed a $105 million contract to deliver services to the Victorian education department's "business critical systems".

 

An education department spokesman said the decision to award ASG the nine-year contract followed a rigorous tender process where 13 companies were invited to submit bids.

"Under this contract ASG will host and maintain the human resources and management system, financial system and procurement system," the spokesman said.

An ASG spokesman said "the company is very comfortable with its position and looks forward to IBAC's ultimate report. The facts speak for themselves, and of course, ASG was an unsuccessful bidder for the contracts in which IBAC has taken an interest."

 

 

Ultranet-linked company handed $105m education department contract, Henrietta Cook and Timna Jacks, The Age, 2 March 2016

2 March 2016 : the one million dollar sham 'review'.

It was revealed at the IBAC hearings that CSG, the company that eventually won the contract to deliver the disastrous Ultranet, received almost $1 million to conduct a "sham" review of the IT project.

The company's former national practice manager Heath Caban confessed in an email, which was tendered as evidence, that he was "too f--ing lazy" to rework the review.

It was alleged that the so-called review was designed to move $1 million out of the department to CSG via a recruitment agency.

The education department-commissioned review involved field work by University of Melbourne students and its unflattering findings were allegedly "softened".

"We found very little evidence of positivity towards the Ultranet, however we have tried to talk that evidence up," an internal CSG email read.

 

Ultranet-linked company handed $105m education department contract, Henrietta Cook and Timna Jacks, The Age, 2 March 2016

John Allman : Darrell Fraser "broke every f------ rule in the book" but he was not a "f----- crook".

Former Victorian education department executive John Allman told the IBAC inquiry that former official Darrell Fraser "broke every f------ rule in the book and spent millions of dollars he shouldn't have spent".

In covertly recorded phone conversations played at the IBAC hearing, former acting deputy secretary Mr Allman can be heard admitting that he was "not saying ... that there's not crooked stuff happening in the department 'cause there is".

 

He went on to insist, however, that Mr Fraser, who is at the centre of a $240 million Ultranet scandal, was not a "f----- crook". 

Mr Allman said Mr Fraser was "just a recalcitrant c---', who spent large sums of money "for the good of f------ education".

Mr Allman also vowed that if Mr Fraser was found guilty of wrongdoing, he would : "bare my -rse at the top end of f------ Bourke Street".

 

Darrell Fraser 'broke every fucking rule in the book', IBAC inquiry heard, Timna Jacks, The Age, 15 March 2016

Problems?

Some of the information on this webpage is taken from the transcript of the IBAC investigation into the Victorian Department of Education and Training (DET) Ultranet project.

This transcript is unclassified.

If you feel that you point of view is not properly represented here, or if you would like your name removed from the webpage, please contact dealingwiththemob@badapplebullies.com

 

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