Three Northern Territory residents are expected to appear at Darwin Local Court on Monday (17 November, 2025) after being charged with fraud and corruption offences.
An AFP-led joint agency investigation named Operation Panton Hill commenced in March, 2025 after the AFP received a report of crime from the Department of Defence about irregularities identified through an internal investigation in relation to the awarding of contracts by Defence with a value of almost $71 million to a Northern Territory business.
The AFP alleges that a Commonwealth employee, his spouse, and directors of a local building company were involved in a conspiracy to influence the awarding of tenders to their company, with the intention of dishonestly gaining a benefit from the Commonwealth, namely the Department of Defence.
It is further alleged the Commonwealth employee exploited his position to influence the allocation of building contracts to the building company and a subsidiary company owned by the co-conspirators.
The AFP, supported by the Department of Defence and the National Anti-Corruption Commission (NACC), executed multiple simultaneously search warrants on businesses and homes across the greater Darwin area on Friday (14 November, 2025).
Investigators seized electronic devices including mobile phones and laptops which will be subject to forensic examination, as well as documentation, a firearm, jewellery, $30,000 in cash and a small quantity of an illicit substance, suspected to be cocaine.
All three were charged with:
- One count of dishonestly gaining a benefit from a Commonwealth entity, namely the Department of Defence, contrary to section 135.1(1), and by virtue of section 11.2A of the Criminal Code Act 1995 (Cth). This offence carries a maximum penalty of 10 years imprisonment.
The Commonwealth employee was further charged with:
- One count of abuse of public office, contrary to section 142.2(1) of the Criminal Code (Cth). This offence carries a maximum penalty of five years imprisonment.
Operation Panton Hill remains an active investigation with enquiries continuing.
AFP Superintendent Greg Davis said abuse of public office or corruption was not only criminal but also 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," Supt Davis said.
"The AFP has specialised and skilled investigators across the country, and maintains strong partnerships with state, territory and commonwealth agencies."
Department of Defence Deputy Secretary Governance, John Reid, explained that following an internal report, Defence has been working with the AFP and the NACC to investigate allegations of corrupt conduct involving a Defence employee and suppliers to Defence.
"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 NACC spokesperson said detecting and investigating alleged corruption in complex procurement activities such as this was a strategic priority for the Commission.
"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.
