Indigenous-owned building company and Defence employee deny alleged $71m

A prominent Northern Territory builder and a married couple connected to an Indigenous-owned construction company have denied allegations they were involved in a scheme to defraud the Commonwealth of up to $71 million in Department of Defence contracts.

The matter returned to court this week, with reporting indicating the accused remain on bail under strict conditions as the case progresses through the Darwin Local Court. A preliminary examination mention is scheduled for 28 April, with the defendants excused from attending and current bail conditions to remain in place.

The Australian Federal Police (AFP) previously alleged the case involves “a conspiracy to influence the awarding of tenders” with an intention to “dishonestly gain a benefit from the Commonwealth, namely the Department of Defence”. The AFP further alleged a Commonwealth employee “exploited his position to influence the allocation of building contracts” to a building company and a subsidiary owned by co-conspirators.

In court this week, defence counsel indicated the allegations would be contested and questioned the clarity of the prosecution’s case to date. “[My clients] deny the allegations and, concerningly, it’s not apparent from the prosecution summary (or the evidence served so far) how the prosecution intends to prove these allegations” the lawyer said, according to reporting of the proceedings.

The alleged scheme has drawn attention not only because of its scale but because it intersects with a policy environment where governments and large institutions have been expanding Indigenous procurement and Indigenous business participation. While many Aboriginal and Torres Strait Islander businesses stress that Indigenous procurement is vital for economic self-determination, the sector also argues that integrity systems must be strong to protect genuine businesses and maintain public confidence.

The case also sits within broader scrutiny of how Defence contracts are awarded and managed, particularly in remote and regional jurisdictions where construction and logistics markets can be tight and relationships between public agencies and providers can be long-standing.