Sunday 29 March 2026

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Contact 1800 772 679

The magazine of the Public Service Association of NSW and the Community and Public Sector Union (NSW Branch)

ICAC inquiry lays bare the failures of outsourcing

ICAC inquiry lays bare the failures of outsourcing

Testimony proves why public service matters.

The Independent Commission Against Corruption (ICAC) recently heard testimony about the former head of School Infrastructure NSW, Anthony Manning.

ICAC heard that while Mr Manning held Public Sector workers in low regard, even allegedly firing those who questioned him, he was rather lavish when awarding contracts to private entities.

Martin Berry of Heathwest Advisory received nine contracts between 2018 and 2022 worth more than $3 million.

Paxon, run by Mr Manning’s associate Michael Palassis was awarded millions of dollars in tenders. Their relationship was not disclosed. Another contractor, Lily Wong, billed $1920 per day and even drafted her own role description.

These hearings were illuminating and our members in Education and ICAC deserve praise for their work. However, the revelations are the inevitable result of a system where Public Sector workers were for years demonised and contractors and outsourcers preferred to operate the machinery of government.

The result was a system where the accountable decision-makers of the Public Sector were overlooked as the previous Liberal National Coalition State Government spent billions on contractors, outsourcers and consultants.

Public Sector workers are held accountable for their actions at work. They are bound by codes of conduct and checks and balances. They are also committed to their roles to make NSW a great place to live, work and learn.

Too often outsourcing and consultants work in the shadows. Too often companies stepping into these roles in place of Public Sector workers hide behind loopholes such as confidentiality clauses. Too often they answer to shareholders first and the people of NSW second.

The different standards under which the contractors and outsourcers operate was a big reason our union’s campaign against privatisation resonated so well with the voters of NSW. And it is this support from voters that saw the old government booted out and replaced by a party less likely to sell out our public services to the highest bidder.

Public Service Matters. You know it, we know it. And thanks to ICAC, more of the people of our state have caught on, too.