Commonwealth employee and NT business director charged over alleged $71 million fraud scheme

Reece Harley Published November 15, 2025 at 7.00pm (AWST)

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The Australian Federal Police made several arrests on Friday following the nine month Operation Panton Hill investigation. (Image: AFP)

Three Northern Territory residents are expected to appear in Darwin Local Court on Monday, 17 November, 2025, after being charged with fraud and corruption offences arising from an AFP-led investigation into alleged manipulation of Defence procurement processes.

Operation Panton Hill, a joint investigation involving the Australian Federal Police (AFP), the Department of Defence, and the National Anti-Corruption Commission (NACC), began in March 2025 after Defence reported irregularities identified during an internal review. The concerns related to the awarding of Defence contracts valued at almost $71 million to a Northern Territory business. The joint media release did not identify the business.

The Indigenous Business Review understands the business at the centre of the investigation is Darwin-based, majority Aboriginal-owned company M + J Builders.

The AFP alleges a Commonwealth employee, his spouse, and directors of a local building company conspired to influence the awarding of tenders to the company, with the intention of dishonestly obtaining a benefit from the Commonwealth. It is further alleged the Commonwealth employee used his position to direct building contracts to the company and a subsidiary owned by the co-accused.

On Friday, 14 November 2025, the AFP, with support from Defence and the NACC, executed multiple search warrants across the greater Darwin region at businesses and private residences. Officers seized mobile phones, laptops and other electronic devices, documentation, a firearm, jewellery, $30,000 in cash, and a small quantity of a suspected illicit substance believed to be cocaine. These items will undergo forensic examination.

*Evidence collected on Friday included mobile phones, laptops and other electronic devices, documentation, a firearm, jewellery, and cash. (Image: AFP)*

All three accused have been charged with one count of dishonestly gaining a benefit from a Commonwealth entity, contrary to section 135.1(1) of the Criminal Code Act 1995 (Cth), by virtue of section 11.2A. The offence carries a maximum penalty of 10 years' imprisonment. The Commonwealth employee faces an additional charge of abuse of public office under section 142.2(1) of the Criminal Code, which carries a maximum penalty of five years' imprisonment.

AFP Superintendent, Greg Davis, said conduct of this nature 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," Superintendent Davis said.

"The AFP has specialised and skilled investigators across the country, and maintains strong partnerships with state, territory and commonwealth agencies."

*Electronic devices siezed on Friday will undergo forensic examination. (Image: AFP)*

Department of Defence Deputy Secretary Governance, John Reid, said Defence had been working closely with the AFP and the NACC since the internal report was made.

"Public confidence in the integrity of Defence and its personnel is essential," Mr Reid said. "We are committed to ensuring all Defence employees and industry partners are held to the highest standards of integrity."

A spokesperson for the NACC said the matter aligned with the Commission's strategic focus on procurement-related corruption.

"The Commonwealth public sector spends tens of billions of dollars on procurements each year, and corruption in these activities can lead to substantial loss and waste, decreased service quality, and reduced confidence in the public sector," the spokesperson said.

Operation Panton Hill remains ongoing, and the charges have not yet been tested in court.