Victorian corruption investigators have laid more than two dozen fraud charges against the former construction manager of the $630 million Bendigo Hospital project after a long investigation.
Bendigo Health's former construction manager Adam Hardinge has been charged by the Independent Broad-based Anti-corruption Commission two years after Fairfax Media first revealed corruption allegations involving Victoria's largest regional hospital development.
![Former Bendigo Health construction manager Adam Hardinge.](/web/20160917123939im_/http://www.theage.com.au/content/dam/images/g/q/6/0/9/u/image.related.articleLeadwide.620x349.gq5vay.png/1468492260681.jpg)
The charges against Mr Hardinge, which include obtaining property by deception, were laid over allegations he misused his position overseeing construction on the state government project.
IBAC has been investigating allegations involving Mr Hardinge and another former senior figure, who has also left Bendigo Health but who has not been charged.
![Adam Hardinge in the Bendigo hospital west wing.](/web/20160917123939im_/http://www.theage.com.au/content/dam/images/g/q/6/0/9/f/image.related.articleLeadwide.620x349.gq5vay.png/1468492260681.jpg)
Fairfax Media is not suggesting the second senior official was involved in corruption. However, sources say the official failed to prevent alleged improper practices over an extended period.
A whistleblower who aided the investigation had worked alongside Mr Hardinge.
The whistleblower – who recently died – had carefully documented concerns about the suspected mismanagement of public assets at Bendigo Health and the failure to implement appropriate anti-corruption governance.
Among the issues referred to IBAC by the whistleblower were concerns about conflicts of interest involving a small number of Bendigo Health officials and some subcontractors working on the hospital redevelopment. Despite the ramifications about speaking out about fellow senior employees in a small regional community, the whistleblower took his concerns to Bendigo Health and, later, to IBAC.
![Adam Hardinge.](/web/20160917123939im_/http://www.theage.com.au/content/dam/images/g/q/6/0/9/p/image.related.articleLeadNarrow.300x0.gq5vay.png/1468492260681.jpg)
"He was very fearful about speaking out but he said he had to do the right thing," a supporter of the whistleblower said. "He was courageous."
Sources say the man was among several whistleblowers in the case.
Fairfax Media believes some items removed from the hospital are still unaccounted for, and that as many as 50 people and businesses were interviewed during the IBAC investigation.
Bendigo Health has conducted an internal review into the allegations and is understood to have improved its governance practices.
Mr Hardinge, who will appear at the Bendigo Magistrates Court on August 15, was interviewed by the media in 2014 about his role overseeing the landmark redevelopment project.
"It's the biggest thing ever to happen in Bendigo, so I think everyone on it is excited to be on it," he said at the time.
Fairfax Media unsuccessfully sought comment from Mr Hardinge and his lawyer on Thursday. It is understood that Mr Hardinge will contest at least some of the charges.
It is also understood that the conduct of other serving or former Bendigo Health officials may form part of future court proceedings. However, the IBAC inquiry will shortly be finalised, which suggests no other ex-officials will face criminal charges. The IBAC hearings have been conducted in private.
The Bendigo Health case is one of several IBAC investigations into the alleged misuse of public funds or property within state government departments and agencies. The corruption watchdog recently released a damning report into the corrupt conduct of several former Victorian Education Department officials.
An underlying theme in many of the IBAC inquiries and those by Victoria's Ombudsman is how ineffective governance in some taxpayer-funded organisations creates significant corruption risks.
Bendigo Health and IBAC said it was inappropriate to comment on the investigation as matters were now before court.
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