Melbourne Water is investigating one of its top managers in charge of construction contracts after millions of dollars in work for the water authority was contracted to a company where his wife was chief operating officer.
Niru Gosavi left Melbourne Water this month after eight years as general manager of major capital delivery.
Former Melbourne Water contracts boss Niru Gosavi in a video produced by the authority.Credit: Melbourne Water
His wife, Avanti Gosavi, was for more than four years responsible for letting contracts at Aqua Metro, which lists $33 million worth of projects for Melbourne Water on its website.
The Melbourne Water investigation centres on whether Niru Gosavi properly declared a serious conflict of interest.
Melbourne Water manages $9 billion worth of waterways across the city, and is one of Victoria’s biggest employers of construction companies, with tens of millions of dollars in works in progress at any time.
Opposition MP David Davis asked Water Minister Harriet Shing in state parliament last week if the couple’s relationship had been declared, and whether the potential conflict of interest was raised internally at Melbourne Water.
Avanti Gosavi in the same video produced by Melbourne Water. For four years, Avanti was the head of contracts at one of Melbourne Water’s major contractors, Aqua Metro.Credit: Melbourne Water
“Mr Gosavi left under a serious cloud,” Davis said. “This is potentially significant corruption here at Melbourne Water.”
Shing responded to Davis that the matter was under investigation by Melbourne Water. “This is a matter that Melbourne Water is dealing with by way of investigation. I have been advised that an investigation is occurring. I have also been advised that the person whom you have referred to no longer works for Melbourne Water.”
The Age asked Melbourne Water about Niru Gosavi’s departure, and a spokesman said the authority had detected concerns through its internal investigations.
“The employee in question no longer works at Melbourne Water and these matters are ongoing. Melbourne Water is committed to upholding the highest standards of integrity and ethical behaviour,” he said.
In parliament, Shing indicated that, along with Melbourne Water’s internal investigation into Niru Gosavi, a separate probe could also be in progress.
“There may be investigations or matters referred to agencies which are beyond the scope of this parliament to comment on and where there may well be obligations to maintain utmost confidentiality,” Shing said.
A referral to the Independent Broad-based Anti-corruption Commission has also been made over the matter. A spokeswoman for IBAC said the commission did not comment on whether it had a complaint or investigation before it and The Age does not suggest the commission will act on the referral.
On Friday, The Age spoke to Avanti Gosavi, who said her husband had previously declared their conflict of interest. She also said she was no longer at Aqua Metro, but did not answer when asked if she continued to work for the firm as a consultant through her business, SRA Civil Services. “Nothing was undeclared, and there is nothing untoward in there. There’s nothing for you to look at.”
Water Minister Harriet Shing told parliament Niru Gosavi could be subject to more than one probe. Credit: Chris Hopkins
Niru Gosavi did not respond to phone calls but issued a statement via Maurice Blackburn, the law firm representing him. It said the information raised in parliament about Niru and Avanti Gosavi was inaccurate.
“These serious allegations have never been put to our client, who has consistently declared that Avanti Gosavi consults with companies in the water industry including companies contracted by Melbourne Water,” the statement said.
“He is deeply distressed by suggestion of wrongdoing and looks forward to co-operating with investigators once the allegations are detailed to him.”
Aqua Metro said in a statement that it had declared Avanti Gosavi’s potential conflict of interest to Melbourne Water and that she had not worked for the company since May 2022. The statement said there were “a number of inaccuracies in the allegations made in parliament” and that these would “be uncovered during the course of any future review by Melbourne Water”.
Melbourne Water has been under scrutiny since last year’s Maribyrnong River floods, in which more than 600 homes and businesses were inundated, and serious questions were raised about the water authority’s competence in managing both its early alert system and its response to the floods.
Current and former Melbourne Water employees have told The Age there are issues within the authority over whether internal conflicts of interest are properly disclosed.
The Age asked Melbourne Water in September for its conflict-of-interest register, a document most government authorities are required to keep updated for all senior employees whose roles mean they can potentially influence contracts controlled by the authority.
Melbourne Water refused to allow inspection of the conflicts register and instructed The Age to ask for the document under freedom of information laws. The authority then refused to release the document under FOI, saying it would be a breach of the privacy of its employees and that its release could hurt Melbourne Water’s commercial interests.
The Age has appealed this decision to the Office of the Victorian Information Commissioner.
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2023-11-21 18:00:00Z
CBMilgFodHRwczovL3d3dy50aGVhZ2UuY29tLmF1L25hdGlvbmFsL3ZpY3RvcmlhL21lbGJvdXJuZS13YXRlci1wcm9iaW5nLW1hbmFnZXItYWZ0ZXItbWlsbGlvbnMtaW4td29yay13ZW50LXRvLWNvbXBhbnktbGlua2VkLXRvLXdpZmUtMjAyMzExMjAtcDVlbDhpLmh0bWzSAQA
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