Media Releases

The Operation Liverpool special report provides the findings and recommendations from IBAC’s investigation into allegations against two senior Bendigo Health officers: former construction manager, Adam Hardinge and Chief Executive Officer, John Mulder.

The investigation found Mr Hardinge engaged in corrupt conduct including the theft of building materials and collusion with contractors to defraud Bendigo Health of thousands of dollars.

The corrupt conduct discovered by IBAC in relation to Mr Hardinge included using Bendigo Health materials in renovations to his private residence, selling a $70,000 electrical transformer that was the property of Bendigo Health to a contractor, without proper authorisation, and arranging for more than $21,000 to be paid into his personal trust account, being the proceeds of scrap from the enabling works associated with the new hospital.

Mr Hardinge was also found to have authorised 25 demolitions and minor building works without building permits. IBAC understands that Bendigo Health is taking steps to certify the integrity of the relevant building work.

IBAC also uncovered evidence that Mr Mulder used Bendigo Health resources for his own private benefit. The value of goods and services provided to Mr Mulder in a personal capacity is estimated to total around $10,000 and included using employees to undertake work at properties owned by his wife, without payment or with belated payment (after becoming aware of the IBAC investigation). 

Mr Mulder was found to have engaged in conduct that was contrary to the Victorian Public Sector Code of Conduct as well as Bendigo Health’s organisational values. He temporarily stood down as Chief Executive Officer in early February 2017.

“Public sector corruption has wide reaching consequences that often go beyond the financial costs,” IBAC Commissioner Stephen O’Bryan said.  

“The Victorian community rightly expects every public sector employee to behave ethically and to use public resources responsibly and for the good of the community.

“Public sector employees, especially senior managers, are required to use their powers in a responsible way. They are not allowed to seek or obtain personal benefit for themselves, their families or associates.”

Mr Hardinge was charged by IBAC and subsequently pleaded guilty to seven charges of theft, one charge of obtaining property by deception, and one charge of attempting to obtain financial advantage by deception. He was convicted on all criminal charges and fined $15,000 in relation to the theft charges, and has agreed to pay $5000 to the Bendigo Health Foundation on the other two charges.

IBAC’s investigation identified deficiencies in Bendigo Health’s systems and controls in a number of areas. Recommendations are made to address these issues including: reviewing Bendigo Health’s integrity and corruption prevention policies and procedures; introducing a ‘declarable associations’ policy; and increasing training to staff that addresses corruption risks and ethical dilemmas.

IBAC has also recommended the Department of Health and Human Services (DHHS) consider the issues raised in Operation Liverpool and whether similar vulnerabilities exist in other Victorian health services. 

Both Bendigo Health and DHHS are to report to IBAC by 30 September 2017 on steps taken to address the recommendations. 

Media contact: media@ibac.vic.gov.au or 0427 480 840

Please note: IBAC will not be providing interviews​​