By Cam Lucadou-Wells
A former senior Education Department bureaucrat has been jailed over a $500,000 school funding rort that embroiled Chandler Park Primary School in Keysborough.
Nino Napoli and his mechanic cousin Carlo Squillaciotti pleaded guilty at the County Court of Victoria on to defrauding the State.
They also pleaded guilty to perverting the course of justice by trying to undermine an IBAC investigation into their scam.
“It is offending, as has been said, that “strikes at the heart of the administration of justice,” sentencing judge George Georgiou said.
As a general manager of the Schools Finance Unit, Napoli awarded contracts and approved payments to associates and relatives including Squillaciotti between 2007-‘13.
He instructed their companies to issue 72 false invoices to an array of ‘banker’ schools, such as Chandler Park Primary School in Keysborough.
Under a system designed by Napoli, the schools were designated ‘banker schools’ – so were authorised to pay the companies from department funds.
“In your position you were aware of internal departmental policies and procedures, including the Banker School system,” Judge Georgiou said.
“You exploited that knowledge to further the conspiracy to defraud.”
Napoli ensured the invoices worth more than $500,000 were paid without scrutiny. He received a personal benefit of $95,000, including a $2000 hairpiece.
Squillacioti’s companies submitted 32 false invoices worth $230,000. Squillacioti received a $58,000 personal benefit.
Chandler Park Primary School paid out false invoices of more than $27,000 to Napoli’s cousin Daniel Calleja and Squillacioti in 2009 and 2011, according to a prosecution summary.
Soon after appearing at IBAC’s Operation Ord inquiry in 2015, Chandler Park principal Peter Paul was suspended.
By the end of the year, he resigned as principal.
Mr Paul’s lawyer told the inquiry that Mr Paul had not committed any wrong-doing or gained personal benefit.
“He did what he was instructed by a senior person who he trusted and respected.”
According to a prosecution summary at the Country Court, Napoli also used false invoices to buy $1900 of wine from a wine merchant company directed by Mr Paul’s son Matthew Paul.
The prosecution didn’t challenge Napoli’s claim that the wine was bought under the direction of another senior education bureaucrat.
Napoli and Squillacioti went to “great lengths” to hinder an IBAC investigation into their conduct, Judge Georgiou said.
Particularly Mr Napoli, who urged his son and others to lie to investigators. Napoli also destroyed and hid damning evidence.
Both accused argued to be spared jail, in part out of mercy that they helped care for ailing close relatives.
Judge George Georgiou said the pair’s offending was too serious to avoid jail.
“The conspiracy to defraud was well planned and sophisticated.
“It involved a complex system of utilising companies and invoicing systems to conceal, Mr Napoli, your involvement and connection to the entities engaged to perform the work for the Department.”
He didn’t accept Napoli’s submission that he directed work to relatives for efficiency and value-for-money.
“I find you each were motivated by financial gain.”
Napoli was jailed for up to three years and 10 months, with a non-parole period of 23 months. He was ordered to repay $95,000 to the State.
Squillacioti was jailed for up to two years, five months. He will be eligible for parole in 15 months.
He was ordered to repay $58,000.
