Three Northern Territory residents faced Darwin Local Court after being charged with serious fraud and corruption offences linked to a multimillion-dollar Defence procurement scheme.
The charges follow an AFP-led joint investigation, Operation Panton Hill, launched in March 2025 after the Department of Defence reported irregularities uncovered during an internal review. The investigation centres on almost $71 million worth of Defence contracts allegedly steered towards a Northern Territory building company.
AFP Superintendent Greg Davis said the allegations represented a serious breach of public trust.
“Defrauding the Commonwealth is a crime that prevents public funds from being used to support the wider Australian community, and we will not hesitate to investigate suspected criminal activity to bring offenders to justice.”
According to the AFP, a Commonwealth employee, his spouse, and directors of the local construction firm conspired to influence the awarding of tenders to benefit their business. It is alleged the public servant abused his position to secure lucrative contracts for the company and a related subsidiary owned by the co-accused.
Department of Defence Deputy Secretary Governance, John Reid, said Defence was committed to upholding integrity across all operations.
“Public confidence in the integrity of Defence and its personnel is essential,” Reid said.
“We are committed to ensuring all Defence employees and industry partners are held to the highest standards.”
A NACC spokesperson said corruption in large procurement processes remained a key priority for the Commission, noting that improper conduct could lead to “substantial loss and waste, decreased service quality, and reduced confidence in the public sector.”
On Friday (14 November 2025), the AFP — supported by Defence and the National Anti-Corruption Commission (NACC) — executed multiple search warrants across greater Darwin. Officers seized electronic devices, documents, jewellery, a firearm, $30,000 in cash and a small quantity of a substance believed to be cocaine.
All three accused have been charged with one count of dishonestly gaining a benefit from a Commonwealth entity, an offence carrying a maximum penalty of 10 years’ imprisonment. The Commonwealth employee faces an additional charge of abuse of public office, which carries a maximum penalty of five years.
Operation Panton Hill remains active, with further enquiries continuing.
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